Mumbai: Saregama is positioning itself for an AI-driven future by exploring licensing opportunities with generative AI platforms while stepping up investments in premium music intellectual property, betting that artist-driven content will become more valuable over time.The music label, which owns a catalogue of over 180,000 songs, sees global deals between music companies and GenAI firms opening up a potential new monetisation avenue for its content library. At the same time, it believes audiences will continue to place higher value on music created and performed by established artists, despite a likely surge in AI-generated content.Also read: Zee nears deal to bag India media rights for 2026 FIFA World Cup after JioStar exits race“Owned music, which is artist-driven premium music, is going to become far more valuable and not less valuable in this AI-driven world,” managing director Vikram Mehra told analysts during the company’s fourth-quarter earnings call. Audiences connect not only with songs but also with the artists behind them, something AI-generated content cannot replicate, he argued.Saregama has not yet committed meaningful capital to AI initiatives but is closely tracking developments in the space as global labels begin signing agreements with generative AI companies.“At the right time, we will also engage commercially with many of these people. So, it may become one more way in which our IP can be monetised,” Mehra said during the investors call on May 14.To improve productivity and reduce operational friction, the company has created a dedicated AI-efficiency team tasked with identifying labour-intensive functions across the business, including copyright infringement tracking and internal operations, where AI tools can improve efficiency.The company plans to invest Rs 300-350 crore in new music content in FY27, up from around Rs 235 crore in FY26, underscoring its strategy of building premium intellectual property even as AI transforms content creation.Also read: Why Ranveer Singh could struggle to start his next film after ‘Don 3’ falloutSaregama, which adds nearly 5,500 new songs annually, is also optimistic about the long-term growth of paid music streaming in India, with platforms such as Spotify, YouTube and JioSaavn increasingly nudging users towards subscription-based consumption.Mehra said paid subscriptions have already started contributing to growth, while revenues from ad-supported streaming have remained largely flat.“We maintain our bullish position on the subscription growth in the country,” Mehra said, pointing to India’s paid music streaming penetration of less than 3%, compared with 67% in Sweden and 57% in the US, leaving significant headroom for growth.According to a Ficci-EY report, audio subscriptions in India crossed Rs 1,000 crore for the first time in 2025, supported by more than 14 million paid subscriptions, as platforms discouraged free music consumption and invested more heavily in technology and independent artists.India had around 178 million audio streaming users in 2025, of which 92% did not pay for a subscription plan, the report added.Alongside its digital strategy, Saregama is also strengthening access to marquee film music through its strategic investment in Bhansali Productions, giving it formula-based access to high-profile Hindi film albums at predictable costs for the next two to three years.“There is a terrific line-up of films planned by Bhansali Productions. This, in turn, ensures that Saregama secures our A and B+ Hindi film music album requirement for the next 24 to 30 months. We won't have to go hunting in the market for it,” Mehra said.The company’s FY27 release slate includes the delayed and now scheduled album of Love & War, Dharma Productions’ Naagzilla starring Kartik Aaryan, Rajinikanth’s next Tamil film, Sivakarthikeyan’s Seyon and Nani’s Paradise.Under its agreement with Bhansali Productions, Saregama has invested Rs 325 crore through compulsory convertible preference shares, potentially translating into a 28%-49.9% stake by 2028, with an option to increase ownership to 51% by 2030. An additional payment could be made in 2028 depending on performance.