Composer Amaal Mallik recently exposed the severe financial disparity within the Bollywood royalty structure. In a recent interview, he stated that he earned only ₹1.5 lakh for his hit track “Sooraj Dooba Hai” from the 2015 film Roy. The song generated an estimated ₹100 crore in revenue for the label over the last twelve years. This gap between commercial success and creator compensation brings immediate attention to how intellectual property functions in the Indian music sector.
The production numbers present a clear picture of profit margins. Mallik explained that the total budget to produce the track maxed out at ₹10 lakh. This amount covered studio time, engineer fees, and food. The total payout split among the entire creative team was roughly ₹15 to ₹20 lakh. The label absorbed the remaining profits. Because music labels control the master rights to these film recordings, they secure 95 percent of the global royalty share. The composer, lyricist, and singer split the remaining five percent through publishing rights.
The Cost of Selling Master Rights
This financial structure exists because the creator surrenders ownership upon signing the contract. Mallik noted that western markets operate differently, allowing producers and artists to retain master rights. In the Indian film sector, the label dictates the financial terms and controls all future use of the audio. They can license the track for advertisements, sync it to new visual media, or commission remixes without the original composer’s approval.
His father, veteran composer Daboo Malik, later responded to these statements. He acknowledged the low payouts but argued that major labels carry massive overhead and distribution costs. Corporate infrastructure requires significant capital, which labels recoup by claiming the majority of the streaming revenue.
Protecting Your Intellectual Property
For musical artists, this situation functions as a strict warning regarding music contracts. When you give up your master rights early in your career, you lose control over your long-term income. A viral hit provides massive cultural visibility, but visibility does not pay your studio rent if another entity owns the copyright.
If you release your tracks independently through a distributor like Ziddi, you keep the master rights to your recordings. A single viral track on streaming platforms pays out directly to you. Retaining ownership means every time a fan streams your song ten years from now, that revenue enters your bank account instead of a corporate label’s quarterly earnings. Prioritizing ownership over an upfront payment guarantees you benefit from the actual financial value of your own work.
