FICCI-KPMG-Report-13-FRAMES

The power of a billion: Realizing the Indian dream 131
While Dhingana has 10.5 million 13 active visitors per month,
Gaana.com has about 3 million unique visitors per month,
as per Comscore (November 2012). By the end of 2013,
Gaana expects to have 10 million active users across all
platforms including recently launched mobile apps 14 .
Hungama.com also has 20 million users 15 via various touch
points.
As legal sites gain popularity and engagement soars, major
brands are increasingly willing to spend on digital music
websites and apps, enabling music streaming services to
provide a large catalog of ad-supported music to end users
for free.
Production houses and labels are also taking advantage of
the opportunities offered by digital music streaming. Tips
Industries Limited recently announced a partnership with
Saavn. Under the agreement, Saavn received exclusive
15-day streaming rights of music for the film Race2 ahead
of the official album launch. Such initiatives allow labels
to create pre-release excitement and maximize impact on
audiences in a cost-effective manner.
Earlier in July 2012, independent artists focused on
music streaming. Discovery platform NH7 partnered with
Flipkart’s owned Flyte to launch digital music downloads
featuring independent music/artists. Currently, the platform
manages 100 artists and claims that all of them are seeing
revenue increases.
Licensed music stores coming to age
Until recently there were few legal sources for buying
media content in India. In 2012 the Indian digital music
industry saw the debut of Flipkart’s Flyte and Apple’s iTunes
stores featuring comprehensive selection of local and
international music from all the major labels and thousands
of independent labels.
Online music stores in India
Music Store Price/Song Price/album Library Size Description
iTunes 16 INR 7 to 15
(Most new
songs priced at
INR 12)
Starting from
INR70
26 million songs in
high-quality
Purchase only possible through credit cards. Also has
a cloud drive to store music.
Flyte 17 INR 8 to 15 Starting from
INR25
Over 2 million unique
tracks across 55
languages and 800
genres and subgenres.
Users can listen to a 30-second clip before making
their purchase. Music purchase from Flyte is currently
restricted to users in India only.
Nokia Music
Store 18 N.A N.A Over 4.5 million tracks Nokia Music is free for a limited period (depending
on the category of device, duration of the free
subscription lasts for 3, 6 or 12 months), post which,
the subscription is at least INR113 per month.
Hungama 19 INR10 N.A Over 2.5 million pieces
of content including
music tracks, movies,
music videos &
dialogues; ringtones &
wallpapers
Saregama 20 INR9.95 N.A Has songs from
various genres and
languages. Also has
old songs
Source: Respective company websites and digital stores
13. ‘How do desi Spotifys stack up against each other biz models behind free music streaming’,
TimesInternet.in, July 2012
14. ‘Gaana mobile app to garner three fold growth’, R Gaana mobile app to garner three fold growth,
Radioandmusic.com, January 2013
15. ‘Hungama Revamps Its Content Portal; HTML5, Free Cloud Storage & More’, Medianama.com,
December 2012
16. ‘iTunes in India, with a price pull’, Hindustan Times, December 2012
17. Flipkart.com
18. ‘Nokia India offering free Nokia Music subscription and recharge options on Symbian phones’,
Mobigyan.com, May 2012
19. ‘Hungama Revamps Its Content Portal; HTML5, Free Cloud Storage & More’, Medianama.com,
December 2012
20. ‘Saregama Working On Live Beta Version Of Its Online Store’, Medianama.com, April 2012
21. Industry discussions conducted by KPMG in India
22. ‘Online Music Industry in India: A look at Past, Present and Future ‘, Nextbigwhat.com, November
2012
Allows full song streaming of music and videos. The
store offers four different subscription plans, for
example, INR99 for 99 tracks in a month.
Provides songs and albums released under the
Saregama label for purchasing. Saregama’s store
also has the option of delivering customized CDs.
Users can opt to create their own playlists & have
them burned on a MP3 CD to be delivered home for
INR199 for 200 minutes (40 songs). It also has various
membership plans for users.
Launched in February 2012, Flipkart’s music store Flyte
achieved 2.5-3 million music downloads in its first year
of operations 21 . As per Hungama.com, an on-demand
storefront for Bollywood and South Asian entertainment
content, the total number of paid downloads including
mobile and web at Hungama.com touched 75 million across
digital entertainment content including music tracks, music
videos, movie streaming etc 22 .
While it would be too early to predict whether this will
change the way music is consumed or purchased in
India, music companies are optimistic and expect an
improvement in sales and a reduction in piracy with the
uptake of such stores.
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