The strategy helps labels secure steady content pipelines, maximize revenue from artists’ output, and monetize fan bases more deeply at a time when streaming growth remains gradual and competition is intense.
Unlike conventional celebrity or talent management agencies, labels are not just taking a cut of earnings. They are encouraging artists to work frequently—sometimes exclusively—with them, facilitating fan interactions and negotiating brand tie-ups, live shows and collaborations. The aim is to extract value across the full creative lifecycle rather than rely only on recorded music revenues.
Why labels are stepping in
“We see ourselves as a music-led entertainment company and by that we look holistically at all aspects of a creative artist,” said Sanujeet Bhujabal, managing director, India and South Asia, Universal Music Group.
“This includes artist development, fan development, A&R (artist and repertoire), revenue optimisation, marketing and distribution as the complete pie. There are a lot of synergies when the vision of the music label and the management entities merge, which unlocks the power of leverage.”
Universal Music Group India (UMGI) has forged a strategic partnership with REPRESENT, an independent talent management company, to accelerate opportunities for its artists. It has also acquired a majority stake in entertainment company TM Ventures, which manages artists such as Arijit Singh, Badshah, Sunidhi Chauhan, Faheem Abdullah, and Asees Kaur.
Such moves open up what Bhujabal describes as a full 360-degree play around artists—spanning brand exposure, merchandise, live shows, intellectual properties (IPs) and other revenue streams.
Consumption shift
Industry executives say the convergence of labels and management agencies reflects a fundamental shift in music consumption.
“A look at India’s music charts today shows that seven of the top 10 tracks are non-film,” said Shahir Muneer, founder and CEO of Divo, a digital media and music company. “Labels see this as an opportunity to invest directly in artists, shape their careers, and retain a stake in their long-term growth.”
For independent musicians, the model can be transformative. Pranjal Begwani, Live Your City, Candlelight Team Lead – India, said many talented artists struggle with touring logistics—venue bookings, ticketing infrastructure, marketing reach and production costs.
“These relationships allow them to co-create programmes, experiment with repertoire, and build something neither party could achieve independently,” he said.
Singer-songwriter Anuv Jain offers a case in point. Universal not only released his music but also collaborated with REPRESENT and Coca-Cola on a song under the Coke Studio IP. The association has helped Universal tap adjacent businesses such as FanSOCIAL, a new IP that creates live, fan-centric experiences—showcases, pop-ups and launches—that move engagement beyond digital platforms.
Universal is also leveraging its partnership with Maddock Films to place its talent in movie soundtracks, widening monetisation opportunities for artists across formats.
Long-term bets
Labels across the spectrum—from independents to global majors—are increasingly prioritizing talent development.
“Moving an artist from one stage of their career to the next takes time, intention, and vision,” said Vivek Raina, managing director, Believe India.
“It’s not about a single deal that temporarily boosts celebrity value. True development is a continuous effort to build core audiences and evolve the artist’s identity.”
As artists grow, Raina added, the level of service and investment required rises—something labels are better positioned to provide as they can shape long-term artistic journeys rather than chase short-term wins.
Following the money
Independent music now accounts for 35–40% of India’s new releases, prompting labels to strengthen artist management capabilities and capture a larger share of the value chain, said industry experts. At the same time, brand collaborations and sync licensing are expanding at 15–20% annually, pushing management from a support role to a strategic priority.
“Stronger artist–label management structures are creating more professionalized pathways for monetisation—spanning sync, brand deals, live performances and short-form content,” said Gaurav Dagaonkar, co-founder and CEO at Hoopr, a music licensing platform.
“As labels take on a larger role in artist management, they’re able to present artists as full-fledged commercial packages, directly enhancing revenue potential across formats.”
Beyond streaming, creator ecosystems, sponsored content and OTT platforms are emerging as significant income sources, allowing artists to tap multiple revenue streams simultaneously, he added.
The trade-off
Still, not everyone is convinced the model always works in artists’ long-term interests. Visibility and promotional muscle may appeal early on, but sustained growth often requires diversity of experience rather than exclusivity.
“The challenges with exclusivity are significant and often underestimated,” said Kumar Taurani, managing director, TIPS Music.
“There’s creative limitation. What happens when the artist’s vision diverges from the label’s commercial priorities? There are marketing challenges, too—labels may excel at Bollywood but struggle with independent or regional content. And there’s the business extraction issue: labels may not be positioned to capitalise on emerging revenue streams like international sync or niche brand partnerships.”
