The music label, which owns a listing of over 180,000 songs, sees world offers between music corporations and GenAI corporations opening up a possible new monetisation avenue for its content material library. On the similar time, it believes audiences will proceed to put larger worth on music created and carried out by established artists, regardless of a possible surge in AI-generated content material.
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“Owned music, which is artist-driven premium music, goes to develop into much more worthwhile and never much less worthwhile on this AI-driven world,” managing director Vikram Mehra instructed analysts through the firm’s fourth-quarter earnings name. Audiences join not solely with songs but in addition with the artists behind them, one thing AI-generated content material can’t replicate, he argued.
Saregama has not but dedicated significant capital to AI initiatives however is carefully monitoring developments within the house as world labels start signing agreements with generative AI corporations.
“On the proper time, we can even have interaction commercially with many of those individuals. So, it could develop into yet another manner by which our IP could be monetised,” Mehra stated through the buyers name on Could 14.To enhance productiveness and scale back operational friction, the corporate has created a devoted AI-efficiency group tasked with figuring out labour-intensive features throughout the enterprise, together with copyright infringement monitoring and inner operations, the place AI instruments can enhance effectivity.
The corporate plans to speculate Rs 300-350 crore in new music content material in FY27, up from round Rs 235 crore in FY26, underscoring its technique of constructing premium mental property whilst AI transforms content material creation.
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Saregama, which provides almost 5,500 new songs yearly, can be optimistic in regards to the long-term development of paid music streaming in India, with platforms corresponding to Spotify, YouTube and JioSaavn more and more nudging customers in the direction of subscription-based consumption.
Mehra stated paid subscriptions have already began contributing to development, whereas revenues from ad-supported streaming have remained largely flat.
“We preserve our bullish place on the subscription development within the nation,” Mehra stated, pointing to India’s paid music streaming penetration of lower than 3%, in contrast with 67% in Sweden and 57% within the US, leaving important headroom for development.
In keeping with a Ficci-EY report, audio subscriptions in India crossed Rs 1,000 crore for the primary time in 2025, supported by greater than 14 million paid subscriptions, as platforms discouraged free music consumption and invested extra closely in know-how and impartial artists.
India had round 178 million audio streaming customers in 2025, of which 92% didn’t pay for a subscription plan, the report added.
Alongside its digital technique, Saregama can be strengthening entry to marquee movie music by means of its strategic funding in Bhansali Productions, giving it formula-based entry to high-profile Hindi movie albums at predictable prices for the subsequent two to a few years.
“There’s a terrific line-up of movies deliberate by Bhansali Productions. This, in flip, ensures that Saregama secures our A and B+ Hindi movie music album requirement for the subsequent 24 to 30 months. We can’t must go looking out there for it,” Mehra stated.
The corporate’s FY27 launch slate consists of the delayed and now scheduled album of Love & Struggle, Dharma Productions’ Naagzilla starring Kartik Aaryan, Rajinikanth’s subsequent Tamil movie, Sivakarthikeyan’s Seyon and Nani’s Paradise.
Below its settlement with Bhansali Productions, Saregama has invested Rs 325 crore by means of obligatory convertible choice shares, probably translating right into a 28%-49.9% stake by 2028, with an choice to extend possession to 51% by 2030. An extra fee may very well be made in 2028 relying on efficiency.
