Saregama is leveraging generative AI to create music videos for vintage songs, aiming to breathe new life into classic tracks. This initiative is part of the company's broader strategy to enhance audience engagement and expand its digital footprint. The AI-generated content is being used across platforms such as YouTube and Instagram, targeting a wider audience and increasing visibility for older songs.

During the Q1 FY27 earnings call, Saregama's Managing Director, Vikram Mehra, discussed the company's use of AI tools in its production house to create 'AI-based ancillary content.' The move is part of a larger effort to innovate and differentiate Saregama in the competitive Indian music industry. Mehra emphasized the importance of adapting to changing consumer preferences and technological advancements.

The current paid streaming penetration in India is significantly lower than in other markets, standing at just 3%. In contrast, Sweden has a penetration rate of 67%, the US at 57%, and even Brazil and China are closer to 18%. This disparity highlights the challenges Saregama faces in promoting paid streaming models within the Indian market, where free content remains more popular.

In India, the low adoption of paid streaming services presents a unique challenge for Saregama. The company must navigate a market where users are accustomed to free content, making it difficult to transition them to a paid model. This situation is compounded by the lack of robust monetization strategies for vintage music, which often lacks the commercial appeal of contemporary tracks.

Saregama's use of GenAI to produce music videos for vintage songs could serve as a bridge to increase engagement and potentially drive adoption of paid streaming. However, the success of this strategy will depend on how well it resonates with Indian audiences and whether it can effectively compete with the sheer volume of free content available online.