India, U.K. firms team for music joint venture

By ERICH BOEHM

CANNES - Indian entertainment group Vatsa and the U.K.-based TKO Magnum Group have sealed a joint venture that will see TKO manufacture and distribute Vatsa's music product in the U.S. and Europe.

The joint venture, TKO/Vatsa Music Group, formally was announced at the Midem music market. For both companies, the move represents a significant entry into new territories. The new company's startup budget is $50 million.

The formation of a large indie is a rarity in a global music industry in which most local players seek alliances with the big six major record companies. TKO CEO Howard Kruger said the joint venture "could be one of the last truly independent major global operations."

Vatsa sells approximately 2 million cassettes per month across the Indian subcontinent. Vatsa CEO Ravi Burman described Indian music as "now selling everywhere," adding that he would seek further deals at the Midem Asia market in May.