Pakistan's music industry is facing a dire challenge – the absence of a sustainable ecosystem for musicians. The recent passing of Asad Abbas, a renowned folk singer, highlights the harsh reality that many lesser-privileged artists endure.


Asad Abbas struggled with kidney dysfunction and desperately sought financial assistance from the government and his peers. Unfortunately, he passed away on August 15, 2023, leaving us to remember his legacy and pray for strength for his family.


Currently, Pakistan's music industry is predominantly driven by brand advertisers who utilize music competitions, shows, and programs to promote various corporate products. While these advertisers have indeed produced remarkable music shows and songs, they have failed to establish a sustainable framework for musicians, despite significant investments.


In essence, advertisers prioritize product promotion and sales above all else. For the past 15 years, music programs have been an effective means for achieving these goals. Their primary focus has been on promoting products rather than nurturing music as a serious profession. This approach has detrimentally impacted Pakistan's music industry, as advertisers have not fostered an ecosystem that recognizes music as a viable and valuable career path. Therefore, the need of the hour is substantial investment in the music industry to create a sustainable environment for musicians.


Globally, great artists and musicians who sell millions of records and perform in concerts are products of an ecosystem that caters to musicians. Music companies play a central role in this ecosystem. Contrary to common belief, music companies are not merely music production houses. They function as corporations, aiming to generate profits and provide dividends to shareholders. Their survival hinges on building a sustainable ecosystem and marketplace.


For example, a record label's business model involves signing artists to create music. Artists assign their copyrights to the labels, which then distribute and market the music. The success of artists and their music translates into higher revenue for the label. In turn, the labels reinvest their earnings in creating better production studios, distribution platforms, technologies, and social media outlets. They also license music to music show producers, electronic media, and music streaming platforms.


The income generated from such licensing agreements is shared with artists and all stakeholders, fostering employment, skill development, and a thriving music industry. Since music companies profit from music sales, they invest comprehensively in the entire music industry supply chain.


However, when advertisers assume the role of music companies, the ecosystem and its significance are often overlooked. The focus shifts to pomp and fanfare, which are vital components of successful branding. The painstaking and sustained investment required for nurturing the ecosystem takes a back seat.


In this context, small music enterprises struggle to thrive in an environment that is not conducive to growth. The substantial resources of advertisers have led to reduced competition, making it challenging for small music enterprises to compete. This imbalance impedes the essential and long-term growth of the music industry.


Like any other industry, the music sector demands long-term, structured, and consistent investment, focus, and prioritization. Advertisers' substantial budgets have also disrupted the market evaluation criteria for music, songs, artists, and their catalogues in terms of licensing and sales. While global music companies evaluate their performance based on factors like views, playlists, revenue from digital and non-digital platforms, and concert audience size, advertisers primarily assess which artist can best promote their products as influencers. This distortion has impacted market rates in the music industry, particularly regarding performance fees and licensing costs.


Licensing music is a crucial source of revenue in the global music industry and is essential for its growth. However, advertisers often lack a deep understanding of music distribution, licensing, and copyrights, leading to a reluctance to engage in licensing or assignment.


In contrast, global music companies thrive on licensing arrangements, allowing music to reach a wider audience and become a revenue source for both companies and artists. Sharing truly is caring. In Pakistan, the music industry suffers from the absence of licensing by advertisers.


In conclusion, advertisers primarily engage with music to serve their branding objectives, whereas music companies, driven by the need to survive and grow, foster innovation. Advertisers, unburdened by the pressure to cultivate a market, have contributed to the deterioration of Pakistan's music industry. Music companies that invest in building an ecosystem for musicians represent the only viable future for the industry's growth in Pakistan.


Yahya Farid Khwaja is the CEO of Freebird Music Entertainment, and Abdul Rafay Siddiqui is the Head of Legal at Freebird Music Entertainment.