While the Internet has made money for many it has also
destroyed all sorts of businesses. The list of companies that have gone under
is long and promises to get longer in the days to come. Ghanshyam Hemdev was
one of the earliest to see the potential in the music business in South India
and he proved it by setting up an immensely popular label called Pyramid Audio.
They were one among the earliest in South India to set up a label catering
exclusively to Tamil music.
He had virtually stumbled into the music business by
releasing the songs of the film ‘Gentlemen’ on Pyramid Audio when other labels
had rejected it because of the price. The film had music by the then musical
sensation A.R. Rahman. The film was a hit and he was irreversibly sucked into
the music business.
https://www.youtube.com/watch?v=sHh1XFHiwpk
From the days when film music was available on CDs and
cassettes at every street corner, the situation is now quite different. The
arrival of the Internet made the hard copy like a cassette or a CD unnecessary.
Music became digitally encoded and could be easily transmitted over the
Internet to anybody anywhere at no cost. File sharing services like Napster
made it impossible for the owner of Copyrights to restrict the sale
geographically. In short it spelt the death of Music labels and forever changed
the mechanics of the music business.
Earlier the ownership and consequently the possibility of
earning were restricted to copyrights owners but with the arrival of the
Internet it became impossible for anyone to track the transmission of music
files. Singers started to ask for a share of the revenues. Music labels who had
acquired the Copyrights exclusively through the payment of hefty sums now found
themselves forced to share their revenues to singers.
Music labels argued that they have already paid the singers
and did not see any justification in the demands of the singers when the
singers do not agree to share when losses are made. All in all it set the stage
for protracted arguments from singers and copyright owners.
Ghanshyam Hemdev explains things from a Music Company’s
perspective.
Watch https://www.youtube.com/watch?v=sHh1XFHiwpk
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