Warner Music India eyes position in top 3 by next year

Speaking to Mint, Mehta outlined Warner’s three-pronged strategy: bringing Indian music to the global stage, establishing itself as a pop culture hub in India, and achieving a top market position in revenue and market share. 

“When we started Warner Music India, a lot of people thought it was crazy to aim for the top three in a market where major players have been around for decades. Today, based on IFPI numbers, we are already in the top five in terms of market share. By the end of the next financial year, we are very close to achieving our goal of becoming one of the top three labels in the country,” Mehta said.

Warner Music follows the October to September financial year cycle.

Taking Indian music global

Mehta said that one of Warner Music India’s most distinctive strategies is its commitment to taking Indian music to the global stage. He said, that while many music labels talk about promoting Indian music internationally, Warner has taken concrete steps by building a robust infrastructure to make it happen.

Warner Music India has already formed 91 North Records, a joint venture (JV) with its Canadian counterpart, aimed at promoting Indian artists in North America. As part of its strategy, the company will create similar JVs across the US, Australia, and the UK, where Indian music can be promoted as part of the mainstream.

“We are the only company that is planning Indian JVs in multiple countries, making Indian music a mainstream offering, not just for the diaspora,” Mehta noted, highlighting the need for local teams in these markets to actively push Indian artists in the same way international stars are promoted in India. He said Warner’s approach is unique in that it is creating a global infrastructure that allows Indian artists to thrive in foreign markets, breaking down traditional barriers to international success.

Building a Pop Culture Hub with Maati

On the domestic front, the music label is positioning itself as a pop culture destination, appealing to diverse audiences across the country. While many labels focus on specific genres, Warner’s strategy is more comprehensive, embracing multiple languages and cultural forms. A key initiative in this regard is the launch of Maati, Warner Music India’s first independent IP, which seeks to elevate folk music into the mainstream pop culture scene.

Planned in 2021, Maati aims to bring true folk artists into the spotlight, giving them a platform that has traditionally been dominated by commercial film adaptations of folk music. Mehta said that while folk music has often been adapted for films, “the original folk artists rarely receive the recognition they deserve”, something that Warner Music is setting out to change with Maati.

The IP focuses on presenting the rich diversity of Indian folk traditions in their authentic form while making them accessible to a broader audience. “We wanted Maati to be an umbrella brand that gives true folk artists the credit they deserve, while also helping folk music reach a national and global audience,” Mehta said.

What makes Maati stand out is not just its music but also its storytelling. Each track under the Maati banner tells a story deeply rooted in local culture and traditions, making it more than just a music initiative. Warner plans to expand Maati beyond music, with plans to launch live festivals across the country by next year, offering fans a 360-degree experience that combines folk music, culture, and storytelling.

Strategic acquisitions and regional focus

The company’s aggressive growth has been fuelled by a series of strategic investments and acquisitions, particularly in regional markets. The company has adopted a hyper-local approach, recognising that regional music, including languages like Tamil, Telugu, Punjabi, and Bhojpuri, is growing at a faster rate than Hindi or English music. To capitalise on this, Warner has formed partnerships with key regional players, including a majority stake in Divo, a South Indian music label, and a strategic alliance with Sky Digital, which specialises in Punjabi music.

The company has also picked up 26% in Global Music Junction, a dominant player in the Bhojpuri, Kannada, Gujarati, Haryanvi and Oriya languages markets, ands the music and entertainment subsidiary of JetSynthesys.

Mehta explained the rationale behind this approach: “If you want to scale, you can’t do everything on your own. We identify the right local partners who understand their markets and manage relationships on the ground.” This strategy allows Warner Music India to build a strong presence in regional markets while leveraging its global distribution network.

Diversifying revenue streams

In addition to building its artist roster and expanding its market presence, Warner Music India is also focused on diversifying its revenue streams. Beyond traditional music revenue from streaming and YouTube, the company is investing heavily in live events, merchandise, and brand partnerships. King and Darshan Raval’s sold-out tours, for example, illustrate the potential for live concerts as a major revenue driver. Warner is also exploring artist-branded merchandise, such as King’s recent collaboration with H&M, which saw exclusive merchandise sell out within 40 days of its launch.

Mehta sees significant potential in building fan communities around artists, rather than just focusing on music. “We are building a 360-degree artist ecosystem and strong fan communities, making Warner Music the destination for pop culture in India,” he said. Warner’s ability to connect artists with global brands, as demonstrated by King’s partnership with H&M, offers a glimpse into how the company plans to monetize its artist roster beyond streaming.

Key Takeaways

1. In addition to building its artist roster and expanding its market presence, Warner Music India is also focused on diversifying its revenue streams.
2. A key initiative is the launch of Maati, Warner Music’s first independent IP, which seeks to elevate folk music into the mainstream pop culture scene.
3. The company has adopted a hyper-local approach, recognising that regional music, including languages like Tamil, Telugu, Punjabi, and Bhojpuri, is growing at a faster rate than Hindi or English music. 
4. Warner is building a strong presence in regional markets while leveraging its global distribution network. 
5. Warner’s Jay Mehta sees significant potential in building fan communities around artists, rather than just focusing on music.