Music labels are making strategic moves into film production as they grapple with the limitations of streaming revenue models and seek more diversified income sources. This shift represents a fundamental transformation from traditional rights holders to integrated entertainment companies.

Recent Investment Activity

The trend gained prominence with significant recent transactions in the entertainment sector. Key investments demonstrate the growing convergence between music and film industries:

Streaming Revenue Challenges

The music streaming ecosystem continues to deliver weak monetization for labels, creating pressure for alternative revenue strategies. Current streaming economics present significant challenges:

According to Anushree Rauta, equity partner at ANM Global, "While the Indian music business continues to grow in scale, it is increasingly exposed to music platform economics, limited pricing power, and a dependence on content created elsewhere."

Strategic Advantages of Film Integration

Film and OTT ecosystems offer substantially more diversified revenue streams compared to traditional music distribution. The entertainment value chain provides multiple monetization opportunities:

• Content distribution rights across platforms
• Music royalties from soundtracks
• Performance rights and licensing
• Global syndication opportunities
• Brand partnerships and advertising revenue

Rahul Hingmire, managing partner at Vis Legis Law Practice, explains the control aspect: "Music labels today depend heavily on aggregators and platforms for discovery, pricing and timing. Film production changes that equation. It puts the label at the start of the IP cycle—script stage, casting stage, marketing design stage."

Market Dynamics and Industry Pressures

Both music labels and film studios face distinct challenges that make collaboration mutually beneficial. Studios are navigating uncertainties including unpredictable theatrical markets, declining satellite revenue streams, and selective OTT commissioning with uncertain budgets.

Charu Malhotra, co-founder at Primus Partners, notes this represents "diversification, but also strategic integration. By investing in film studios, music labels move upstream into content creation instead of only monetising the soundtrack after the film is made."

Saregama's Diversification Strategy

Saregama has been actively reducing dependence on downstream licensing through strategic acquisitions and expansions:

This approach demonstrates the shift from passive rights acquisition to active content stakeholder participation.

Future Industry Outlook

Gaurav Dagaonkar, CEO of Hoopr, emphasizes the fundamental transition: "This shift reflects a far more fundamental transition—from being rights holders to becoming ecosystem owners. By investing in film and content studios, labels gain early influence over storytelling, allowing music to be embedded organically into narratives."

Ashima Obhan, senior partner at Obhan & Associates, predicts labels will adopt a dual strategy: "safeguarding their music heritage, while aggressively expanding into films and series to ensure they remain indispensable players in India's evolving entertainment economy."

Hardeep Sachdeva from AZB & Partners concludes that "content production will be treated as the growth engine, an avenue to secure relevance and scale in a market where consumer attention is increasingly platform-agnostic." This transformation positions music labels as integrated entertainment companies where music and content reinforce rather than compete with each other.

Saregama India Limited has announced a key board transition with the completion of an Independent Director's tenure, marking the end of a significant leadership chapter for the entertainment company.

Director Tenure Completion

Mr. Santanu Bhattacharya (DIN: 01794958) ceased to be an Independent Director of Saregama India Limited with effect from the close of business hours on December 21, 2025. This cessation follows the completion of his second and final term as an Independent Director, in compliance with regulatory requirements that limit the tenure of independent directors.

The company has placed on record its appreciation for the significant contributions made by Mr. Bhattacharya during his tenure with the organization. This announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Updated Board Composition

Following Mr. Bhattacharya's cessation, the company has provided an updated list of its Directors and Key Managerial Personnel effective from December 22, 2025. The current board structure reflects a balanced composition of executive, non-executive, and independent directors.

Regulatory Compliance

The cessation announcement was made in accordance with SEBI regulations, specifically under Regulation 30 read with Schedule III Part A Para A of SEBI LODR and the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has ensured full compliance with disclosure requirements and has made this information available on its official website.

The transition maintains the company's governance standards while ensuring continued compliance with independent director tenure regulations. The remaining board composition includes four independent directors, maintaining the required independence ratio for effective corporate governance.