Saregama has renewed its agreements with Meta to have its music on Instagram Reels, Stories & other Facebook product, We had reported earlier this month that this deal, signed two years ago, had been allowed to expire, with the companies apparently unable to agree on the financial term of the deal.
The agreement allow Sare gama music to be used by Instagram users & influencers, selecting Saregama song as background music in Reels and Stories.
Sare gama music is now available again on Meta product. A Meta spokesman declined to comments, noting that the company previous comments refused to say anything about negotiation with the partner. spokesperson declined to comment, but acknowledged that the music was back on Meta platform.
Shortly before letting the deal with Meta expire, Saregama announced a deal with Google for its catalog to be used for short YouTube videos. One industry insider speculated that since it’s been a couple of years since record labels first licensed short video platform, the former began demanding more value from their deals.
It is not clear what changed the opinion of Meta or Sare gama regarding the renewal of this agreement. However bargaining position may not have been so bad. The company annual report released in August shows that its licensing revenue represent more than 75% of its total music revenue, and that revenue has grown steadily over the years, including during the COVID year. But its overall music revenue flattened QoQ in FY22.
Music licensing revenue includes everything from revenue from platforms like Spotify, advertising revenue from YouTube, sales of Saregam’s Carvaan music player. In FY22, Saregama earned Rs 358.7 crore from such licences. It is unclear how much of this revenue comes from short video licensing deals like the one with Saregama & platform like Instagram and YouTube.