MBW’s World Leaders is an everyday collection through which we flip the highlight towards a number of the most influential trade figures overseeing key worldwide markets. On this function, we converse to Jay Mehta, Managing Director, Warner Music South Asia. World Leaders is supported by PPL.
India is a giant precedence for Warner Music Group – and it’s not laborious to see why.
The corporate’s CEO Robert Kyncl instructed analysts on WMG’s calendar Q3 earnings name the opposite week that India “will grow to be an more and more influential world drive within the music enterprise”.
He identified the hole between the dimensions of the market’s GDP (the world’s fifth largest) versus the dimensions of its recorded music market (the world’s 14th largest).
Kyncl argued that this hole will shut, pointing to the chance in subscription music streaming. He famous that solely 2% of the nation’s 1.4 billion inhabitants at present subscribe to music streaming providers, however that India’s whole subscriber quantity has grown 40% over the previous 12 months.
India won’t be the biggest market globally by variety of music subscribers, nevertheless it may very well be heading in the right direction to grow to be the biggest by quantity of streams.
Stats revealed by Luminate in January confirmed that India noticed the most important YoY enhance in whole annual on-demand music streams of any nation final 12 months.
If annual streaming quantity development within the US slows in 2024, as many anticipate it would – however India manages to maintain its 2023 YoY streaming development margin this 12 months – India may grow to be the world’s largest music streaming territory by quantity in 2024.
WMG formally launched Warner Music India in March 2020, headed up by Jay Mehta.
He joined Warner Music Group following a number of years at Sony Music on April 1, 2020, proper in the course of the primary COVID lockdown.
His remit expanded in April 2024 to incorporate oversight of Bangladesh, Nepal, Pakistan, and Sri Lanka as Managing Director of the newly shaped Warner Music South Asia.
“We had a really attention-grabbing begin to Warner Music India,” Mehta tells us. “However what we’ve completed within the final 4 years is important.”
Warner Music has since inked a number of distribution and M&A offers available in the market, trying to bolster its positioning amid projections of serious subscriber development and streaming consumption domestically.
On the distribution entrance, WMG has struck offers with Bollywood specialist Ideas Music and Punjabi music firm Sky Digital India.
WMG’s M&A strikes, in the meantime, embrace a strategic funding in JetSynthesys’ International Music Junction in April. It additionally acquired India-based artist administration and dwell occasions firm E–Optimistic in October 2023 and purchased a majority stake in digital media and music firm Divo in February final 12 months.
Most lately, earlier this month, WMG took a minority stake in ticketing platform SkillBox, simply a few weeks after Robert Kyncl revealed by way of an Financial Instances article that WMG is actively in search of M&A alternatives in India.
Talking with MBW, Jay Mehta reiterates that M&A will likely be key to the corporate’s growth in India.
“One of many issues we at all times aimed for once I began Warner Music India was to grow to be a prime three label within the nation,” he tells us. “It appeared very bold after we began as a result of we have been the final massive participant to enter the market.”
He provides: “To have that sort of dream in a particularly aggressive Indian market, with out having a home catalog, virtually felt unreal. However [we’ve already] had success. Within the month of March, we had near 30 tracks in Spotify‘s Prime 200 and we don’t have a giant catalog as a part of Warner [in India]”.
“We wish to be the flag bearers taking this sound world, and I believe we’ve had a very good begin in that.”
Jay Mehta
Along with getting ready for India’s home music trade development by means of native partnerships and investments, Mehta argues that India will begin enjoying an more and more influential artistic position within the world music trade.
He predicts that Punjabi-language music would be the subsequent world breakout style after Okay-pop and Afrobeats.
“I’ve been saying this for some time now,” he says. “The primary interview that I gave once I began Warner Music India was about this. I actually imagine the subsequent world wave goes to be from India. And I really feel Punjabi music has all of the components to make that occur, from the beats to the melody and the artists.”
Warner is seeing success in India and globally with frontline Punjabi-language artists like Diljit Dosanjh, who signed his first main label partnership with WMG in March 2022. In line with Mehta, Dosanjh is turning into “one of many greatest superstars of the Indian diaspora”.
Proof of Dosanjh’s world enchantment arrived in April when he carried out the biggest-ever Punjabi live performance held exterior of India on the BC Place Stadium in Vancouver, Canada. He additionally turned the first-ever Punjabi-language artist to carry out on The Tonight Present with Jimmy Fallon in June.
“We wish to be the flag bearers taking this sound world, and I believe we’ve had a very good begin,” says Mehta.
Different Warner-affiliated Punjabi-language stars embrace Shubh, plus Karan Aujla who’s signed between Warner Music India and its Toronto-based JV with Warner Music Canada, 91 North. Warner additionally works with Hindi-language celebrity rapper, King.
“All of those artists will be certain that it’s not only a one-artist phenomenon,” says Mehta. “A giant cultural shift goes to occur.”
Mehta tells us that the 91 North three way partnership, led by Ikwinder (Ikky) Singh and Ajay Charlie ‘B’ Saxena, varieties a part of Warner’s “ambition of taking South Asian music to the world”.
He plans to copy the mannequin in different nations however explains that Canada was chosen as the primary location for the JV, as a result of it’s the place a “massive cultural revolution is going on by way of content material creation” within the world South Asian diaspora.
“There are lots of markets that are consumption markets for South Asian music, however Canada is turning into a giant creator hub,” provides Mehta. “That’s why we needed to do that JV in Canada. It’s the place a number of the greatest artists and so the perfect music is getting created.”
He spotlights the success of Karan Aujla and Ikky’s Making Reminiscences album for example of crossover success available in the market. It reached No.5 on the Canadian album chart final summer time, the highest-charting Punjabi-language album within the chart’s historical past.
Trying forward, Mehta says that he’s trying ahead to the day when a frontline South Asian artist “celebrates a mainstream award” like a Grammy in a serious class.
“Fingers crossed on that one,” he says and tells MBW in regards to the steps WMG is taking to try to make {that a} actuality…
What markets globally are you figuring out as key artistic hubs for South Asian music like Canada?
India and Pakistan are the obvious markets. However exterior of the South Asian group in South Asia and Canada, we’re seeing [potential] in California and plenty of elements of the US.
The UK has at all times been a hub, however I believe it has began to reflect a few of these [trends] from Canada. That’s the place we wish to take North data – to all of those diaspora markets.
Might you touch upon Diljit Dosanjh’s success in North America?
It’s a giant second, not just for him however for all the group. We at all times needed there to be the flag bearer of taking this sound world, or taking South Asia world.
He’s main from the entrance with the successes and the quantity of curiosity that he’s producing from internationally and on his North American tour. We’ve seen arenas offered out and offered out inside days of him asserting the tour. That’s unimaginable.
We don’t see that occur for a lot of artists, not solely South Asian artists however massive, world artists; after they announce a tour, it will get offered out in hours. That’s the ability of what Diljit has [achieved]. And lots of that’s mirrored in different success as nicely.
The quantity of collaborations that we’ve completed with him within the final 18 months is unimaginable. The Sia monitor [Hass Hass] was on Spotify charts in a number of nations. It was on YouTube charts in a number of nations.
A collection of massive worldwide collaborations are arising. He’s solely going to develop larger from right here.
his touring stats, he has arguably damaged the North American market in dwell. Are these collaborations with world stars the important thing to breaking the North American market, by way of breaking into the highest 10 of the Sizzling 100?
For positive, sure. That’s what we’re aiming for subsequent. You’re proper – by way of touring, he’s already damaged there, however we wish to hit the Billboard charts and we wish to hit prime streaming charts in these markets.
Collaborations are the instant steps to making sure {that a} wider viewers past the diaspora begins to find and stream his music.
So we could have the followers of the artist he’s collaborating with uncover him, and slowly, the revolution will likely be full by way of, people who find themselves not listening to South Asian music will now begin listening to it due to him.
As Punjabi artists grow to be extra profitable globally, how aggressive is it attending to signal artists from South Asia, and are you competing with labels within the US for these signings?
Positive, however that’s solely thrilling for us.
The extra competitors implies that these artists are producing lots of curiosity worldwide. That’s necessary. It’s a giant constructive takeaway for us, saying that lots of massive US labels at the moment are keen on signing South Asian artists.
What’s driving the expansion in streaming quantity domestically and within the world consumption of music from India?
It’s a mixture of how underpenetrated India as a market was, and on the similar time, we now have artists who’re [making] really international-level music, and we have now Indian artists who’re turning into massive stars.
It’s a mixture of all three. However, you realize, the primary monitor ever from India to hit the International Prime 25 on Spotify was by an artist that we [signed], known as King.
The second monitor to hit the International Prime 25 on Spotify was once more from one of many artists signed to us, Jasleen Royal.
These [global hits] have been pushed by numerous streams from India. India, as a market, has roughly 220 million audio streaming customers, which is simply 40% of the nation’s whole YouTube customers. YouTube customers are at round 550 million, roughly lower than 50% of whole cell customers.
At such low ranges of penetration, India is popping out the [domestic streaming] numbers [to produce] a very International Prime 25 on Spotify.
Think about, even when we attain 50% of India’s whole cell inhabitants utilizing audio streaming, we would begin having world No.1s solely coming from streams [from within] India.
We’re rising a lot sooner than massive elements of the world. So even at these massive numbers and massive base, there’s a market that’s going to multiply. And we lastly even have a giant record of artists who’re making really worldwide music of superb high quality. India goes to [produce] the subsequent massive world wave for music.
Circling again to Warner Music’s positioning in India and in South Asia, you’ve signed a couple of partnerships and made a couple of investments since 2020. How necessary will M&A be in increasing your presence available in the market within the coming months and years?
M&A is necessary as a result of the bigger purpose is to be a prime label within the nation throughout the first 5 years of launching. And we’re not too removed from that. We’re positively within the Prime 5. M&A is a approach of guaranteeing that, extra importantly, we have now deeper penetration and deeper presence inside a rustic.
India behaves like a continent by way of music, the place music is created in numerous languages, in numerous states. Every language and every state has a journey of its personal.
Our purpose was to make sure that we’re positively current in a minimum of 12 or 13 of the nation’s prime languages. Whereas Hindi was rising sooner than English, regional languages have been rising a number of instances sooner than Hindi.
That was our massive goal: guaranteeing that we develop backside up and be nearer to the bottom. That’s why most of our M&A offers are within the regional area.
We acquired an organization which is without doubt one of the greatest media corporations within the south of India, known as Divo. We now have a giant presence in Punjab by means of acquisitions and a partnership with Sky Digital. We invested within the greatest central India firm known as International Music Junction. As we converse, we successfully have some kind of presence in 19 of 28 states within the nation on the again of M&A.
Whereas on the middle, we’re signing artists and making ourselves a vacation spot for popular culture in India. However on the similar time, we’re creating this ecosystem throughout the nation by having the identical philosophy throughout totally different languages to our companions.
What was the pondering behind the launch of Warner Music South Asia?
It was began with the target of taking the success that we had in India and replicating it in different South Asian nations. As a result of, like I stated, our dream is to take South Asian music to the world. And it’ll occur off the again of, not simply India, however by taking Pakistan, Bangladesh, and this whole artistic hub throughout these nations to the world.
And due to proximity to those markets, the thought was to function Warner Music South Asia from Dubai, however all of those nations have entry to Pakistan, Bangladesh, Sri Lanka, and Nepal.
Pakistan specifically is the second-biggest South Asian market exterior of India, and a number of the finest content material created there’s by means of Coke Studio. So we determined to put money into the corporate known as Giraffe Studios, which have been making the most important tracks out of Coke Studio.
The concept was to make sure that we have a look at South Asia holistically, and that implies that throughout India, Pakistan and Bangladesh, collectively, we have now to take these cultures to the world. That’s the bigger thought behind the South Asia [division].
What are your longer-term predictions for the music sector in each India and wider South Asia?
This phenomenon is right here to remain. We’re simply on the tip of the iceberg by way of exploring the true potential of South Asian music and the artists.
The presence is really felt, each by way of music and consumption, and now artists like Karan Aujla are profitable Junos and Diljit Dosanjh are promoting out stadiums.
These are very encouraging indicators. However within the close to long run, we’ll see a giant, main South Asian music wave all through the world. These are the perfect instances for South Asian music and artists.
