Yash Raj shuts music label?
The latest buzz doing the rounds is that Yash Raj Films plans to shut its music label and the overseas distribution network. A major section of trade is attributing this reported move as the studio's measure to tackle the ongoing recession and a result of heavy losses with their recent spate of flops.
"Yash Raj music was launched in 2004 with Veer-Zara. Though there were musical successes like Salaam Namaste, Bunty Aur Babli, Dhoom 2, Fanaa and the very recent Rab Ne Bana Di Jodi, the recent string of flops from the banner saw lower sales in their music. That apart, their own films' low-key music promotion was also being blamed for poor sales. Facing the recession heat apart from losses, the music label is proving to be more of a liability than an asset to maintain," says an industry insider.
Apparently the general feeling within Yash Raj is that it will be a better deal to sell their music to another company rather than doing it themselves.
As far as the overseas distribution network is concerned, reports suggest that with little or no home productions in the coming months, the company might consider shutting down operations. "If not a complete shutdown, there is bound to be a major staff reduction on the anvil," says a source.
Currently the offices of Yash Raj Films International are located in New York, which covers North and South America, Dubai that covers UAE, and London that covers the territories of United Kingdom, Europe and rest of the world.
Over and above the recession, Yash Raj received a major blow when Karan Johar shifted his loyalties to UTV. READ: KJo and Ronnie Screwvala join hands
"That," suggests a source, "has been the biggest blow to the company. Karan was Yash Raj's only major cash cow in the overseas market. Their strategy of having multiple releases in a single year like the studios in Hollywood has clearly failed. YRF has seen some serious losses. But more importantly it has made the production house rethink their future strategy. With fewer films in production, maintaining these overseas offices is proving very taxing for them."
