After Saregama licensed its physical business to the home entertainment, it appears that Tips Industries is also about to do the same, indicating that digital distribution is the way to go.

In a report by Business Standard, Tips Industries MD Kumar Taurani said that Tips is looking to hand over the physical production rights to someone and that it become unwieldy to service retailers and dispatch SKUs. Times Music had earlier distributed some of Tips’ releases. Tips has a catalog of more than 25,000 tracks and also sells music on its website – Tips.in. Tips also has a significant presence on video streaming site YouTube.com with 1,880 videos and has tie ups with telcos for song download and CRBT.

In July 2013, Saregama India, one of India’s largest music labels, had inked a worldwide licensing agreement with the Home Entertainment Services division of Sony DADC (Sony Digital Audio Disc Corporation) for its physical business: Sony DADC will receive exclusive worldwide rights to the entire Saregama audio/video content library including its sales, marketing and distribution across physical formats like CDs and DVDs among others. Following this, Saregama had stated that it will now focus on digital music sales as the company’s physical music sales had been declining. For Saregama, digital format accounted for 70% of the company’s revenues while physical sales accounted for the remaining 30%.

Note that Saregama had invested significantly in the digital segment and currently offers music through various digital channels like CRBT, WAP, web and devices.

That said, there are various ways music labels can monetize digitally these days. With the rise of music streaming sites like Gaana, Dhingana, Saavn, Hungama, etc, music labels can licence internet rights to such service to monetize.

T-series had recently reported that it had crossed 1 billion video views on YouTube. In September 2011, YouTube had announced its partner program in India enabling video content creators to become content partners with YouTube and monetize their work  through advertising on the website.

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