Archive · 19 Jan 2026
Music Labels Invest in Film Studios
Music companies like Saregama and Universal Music are buying parts of film production companies.
This is because making money from music alone is hard, with very little paid per stream.
By investing in films, music labels can be involved from the start, helping to create content and earning money from more than just music.
Film studios are also facing challenges like unpredictable movie theater earnings and competition from international content.
Together, music labels and film studios can support each other, making both businesses stronger and more successful in the long run.
Music labels are investing in film studios to diversify revenue streams and gain influence over content creation.
Saregama invested ₹325 crore in Sanjay Leela Bhansali’s company, and Universal Music acquired a 30% stake in Excel Entertainment.
Music streaming offers weak monetization, with per-stream payouts as low as ₹0.05-₹0.10.
Film studios face challenges like an unpredictable theatrical market, declining satellite revenue, and OTT budget uncertainties.
By investing in film studios, music labels can access multiple revenue streams and influence creative decisions from the start of the IP cycle.
- Who
- Music labels like Saregama and Universal Music, film studios like Sanjay Leela Bhansali’s company and Excel Entertainment
- What
- Music labels investing in film studios for vertical integration and diversified revenue streams
- When
- Recent investments, with Saregama investing in December and Universal Music earlier this month
- Where
- India
- Why
- To manage systemic risk, secure long-term value, and gain influence over creative decisions and multiple revenue streams
- Investment by Saregama
- ₹325 crore in Sanjay Leela Bhansali’s company
- Investment by Universal Music
- 30% stake in Excel Entertainment
- Per-stream payouts
- ₹0.05-₹0.10
- Music labels' strategy
- Vertical integration and content creation
- Challenges for film studios
- Unpredictable theatrical market, declining satellite revenue, OTT budget uncertainties
- Benefits for music labels
- Early access to IP, multiple revenue streams, influence over creative decisions
- Example of successful adaptation
- Dhurandhar, using Saregama’s existing repertoire
- Future strategy for music labels
- Dual focus on music catalogues and content production