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The T-Series Story

            

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The Indian Music Industry Contd...

UNDERSTANDING THE MOVIE/MUSIC CONNECTION

Producers usually sign music directors for a movie in the planning stages itself. Sometimes the music directors are brought in after the story is completed. The producers then tie up with a music company. The marketing of a movie starts usually a month before the release of the music of the film, through print ads, posters, billboards and signboards. Once the music is released, trailers are shown on various television channels. The promotion costs are either borne completely by the music company or shared by the company and the producer. The overseas distributor is responsible for promoting the movie in the foreign markets. The promotion is sometimes continued even after the movie's release, depending on its performance.

Acquiring the rights to the music of a new Hindi film is costly, with the acquisition costs ranging between Rs 20-120 million. With the market being price sensitive, margins were low and the break-even volumes were high. There was considerable risk as predicting the success of a soundtrack was extremely difficult. The initial promotion costs for the music companies ranged from Rs 10-20 million. Besides this mode of paying an up-front amount, another model followed was the Minimum Guarantee plus royalty model, wherein the company paid a smaller amount to the producer and committed to paying royalty only if the income from the album exceeded a certain amount.

Source: ICMR

Music Piracy

The term piracy is generally used to describe the deliberate infringement of copyright on a commercial scale. It is illegal and criminal in nature. Music piracy basically refers to three kinds of activities:

Counterfeiting – The copying of the sound as well as artwork, trademark, label and packaging of the original recording, with an aim to mislead the consumer into thinking that they are buying the genuine product.

Pirate Recording – The unauthorized duplication of music from legitimate recordings for commercial gain. Pirated CDs or music cassettes may be compilations or combination of hit titles of different music companies. Unlike a counterfeit product, the packing and presentation of a pirate copy is usually not a replica of the legitimate commercial release.

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Case Details

Case Code : BECG010
Themes: Ethics in Business
Case Length : 08 Pages
Period : 1970-2001
Organization : T-Series, Super Cassettes, HMV, Venus
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Media, Entertainment & Information

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