Sony Music Entertainment India has signed a strategic worldwide deal to manage the digital assets (except YouTube) of all Bollywood releases from Zee Entertainment Enterprises Ltd’s recently launched music label Zee Music Company (ZMC).
As per the deal, Sony Music will have access to all of Zee Music’s upcoming Bollywood releases including Holiday, Bang Bang, Bombay Velvet, Humshakal, Hawa Hawaii, Guddu Rangeela and Traffic among others. The company had earlier stated plans to acquire music rights of over 20 major motion pictures in this financial year.
Sony Music India marketing director Sanujeet Bhujabal has told Radioandmusic that Sony Music will initially manage the digital assets and radio rights of Akshay Kumar’s upcoming movie Holiday and seven other movie soundtracks. It will also be responsible for monetising these assets across various video sharing sites like Vuclip, Dailymotion and Yahoo among others.
On the revenue front, Bhujabal mentions that the deal is based on a minimum guarantee followed by a revenue share model. The company expects this deal to grow its cumulative digital market share by 15% in a market dominated by the music label T-Series.
YouTube is not part of the deal: What’s worth noting here is YouTube rights is not part of this deal. Bhujabal mentions that the YouTube channel for these films will be handled and monetised directly by Zee Music. We are currently awaiting a response from Zee Music for more details on this.
Apart from this, Sony Music will also have international publishing rights for these releases through its Sony/ATV music publishing company.
Sony Music mentioned that it is also working with other production houses like Vishesh Films, Dharma Productions and Fox Star Studios for their prominent “tentpole movies“. Interestingly, Zee Music had also previously stated plans of tying up with studios like Dharma Productions and Excel Entertainment among others.
Earlier in July 2013, Saregama had also inked a worldwide licensing agreement to license its physical business to the Home Entertainment Services division of Sony DADC (Sony Digital Audio Disc Corporation) in order to focus on digital music sales.
Also read: Zee launches music label; Why this matters