In a landmark move that could reshape the financial foundations of Indian cinema, music giant Saregama India Ltd has invested ₹325 crore in celebrated filmmaker Sanjay Leela Bhansali's production house. The deal, finalized in late December 2025, is notable for a critical condition: Bhansali Productions retains full intellectual property (IP) rights to all its films. This structure marks a significant departure from traditional Bollywood financing and points toward a more mature, institutional model for funding content.
The Core of the Deal: Separating Music from Movie Ownership
The agreement is fundamentally a strategic play for Saregama to secure a premium music pipeline. In exchange for its investment, Saregama gains exclusive music rights to all future films produced by Bhansali Productions under a pre-agreed pricing framework. This move eliminates the uncertainty and high costs of competitive bidding for the music of a top-tier director's work.
For Bhansali Productions, the benefits are multifaceted. Retaining film IP ensures creative control, protects future valuation upside, and provides flexibility to independently negotiate theatrical releases, OTT platform deals, and international distribution. The capital infusion is patient, allowing the production house to scale operations without surrendering ownership of its most valuable assets—the films themselves.
A Structural Shift for Industry Financing
Experts view this transaction as a bellwether for the industry. Alay Razvi of Accord Juris notes that for Saregama, this is a music-centric investment rather than a risky bet on box office performance. The model effectively lets each party monetize its core strength: Saregama builds its scalable music IP library, while Bhansali maximizes the economics of film production and distribution, with risks kept separate.
This approach aligns India closer to global studio economics, where high-margin IP ownership is often distinct from the high-risk venture of film production. It follows a similar pattern seen in 2024, when Adar Poonawalla invested in Dharma Productions. Legal expert Ameet Datta of ADP Law Offices welcomes this trend of institutional funding but cautions that corporatizing creative choices might not always yield positive artistic results.
Implications for the Future of Bollywood
The deal arrives at a pivotal time. With OTT platforms tightening their content budgets, and global capital seeking disciplined exposure to Indian storytelling, such innovative financing structures become crucial. Ashima Obhan, Senior Partner at Obhan & Associates, highlights that the arrangement signals a healthy coexistence where capital supports creativity without overwhelming it.
Charu Malhotra, Co-founder of Primus Partners, suggests this could be a template for future institutional funding. Investors are increasingly comfortable backing "platform plays"—companies with recurring revenue streams, monetizable catalogues (like music), and diversified income from OTT, live events, and brand partnerships. This is more appealing than betting on individual films, which are inherently high-risk, high-variance ventures.
In essence, the Saregama-Bhansali partnership suggests a move away from Bollywood's traditional boom-and-bust financing cycle. The future may lie in viewing movies not as standalone gambles but as integral parts of a broader, sustainable, and professionally managed content ecosystem.
