KUALA LUMPUR: Local music industry prospects remain promising backed by the rise in digital sales, said Warner Music Malaysia managing director Dinesh Ratnam.
Ratnam said the local music industry achieved historic revenue in 2023, marking the highest income ever recorded.
The shift towards digital platforms has opened up new opportunities for local artists to reach a wider audience both locally and globally, he added.
"Digital everything has changed the way we live, work, shop and ultimately consume entertainment, and the music industry is no stranger to this.
"While it's true that 99 per cent of music sales in Malaysia are digital, with streaming platforms dominating the scene, we view this as a long-term opportunity rather than a short-term hurdle," he told Business Times in an interview.
According to Scoop, local music industry achieved a historic revenue of RM303.89 million in 2023.
The 57 per cent increase over the last three years, was driven by a 53 per cent rise in digital sales and a 70 per cent surge in collections by collective management organisations such as Public Performers Malaysia, Music Copyright Protection Body Bhd and Recording Performers Malaysia Bhd.
Ratnam expressed confidence in the resilience of the local music scene, pointing out that Malaysian artists continue to produce quality music that resonates with audiences.
He said Warner Music aims to make Malaysia a prominent hub for regional and global music and entertainment, and achieving global recognition requires a collective effort.
"We envision a future where record labels, artists, government bodies and other stakeholders work hand-in-hand to nurture talent, invest in infrastructure, and create a supportive environment for Malaysian music to thrive.
"Collaboration is key, and by working together, we can transform Malaysia into a global music powerhouse," he said.
While leveraging the reach and revenue potential of streaming platforms through close collaboration with DSPs (digital service providers), Ratnam said Warner Music also recognised the need for a diversified revenue strategy.
He said the company has strategically partnered with brands to develop engaging campaigns that leverage the power of our artists' music.
"In addition, we have also been actively supporting our artists in developing touring opportunities, both domestically and internationally.
"These concerts generate not only ticket sales but also merchandise revenue and further strengthen the connection between artists and fans," he added.