Mobile Music = Mint Money

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In: CE, Mobile

Mobile has become a converged device in the hands of an Indian. According to a recent survey by Singapore based SoundBuzz, sales of digital music for mobile will touch Rs 3,601 crore [$900 M] out of the projected Rs 4,100 crore [$1.025 B] digital music market in 2009. It is not the full track songs that Indians are downloading, but its is the ringback, caller tunes and variants that is generating most of the revenues. The bitter part is, the content creators are making mere 15% while Network Operators make 60% and aggregators take home 25%. [Source IMRB] This equation should change in favor of content creators as they are unlikely to offer fresh and innovative content for distribution on this platform.

Coming to e-Music, Saregama which holds rights for 65% of Indian music titles and has realized lately and is now offering a music track at Rs 10 / download. Mr. Atul VP of Saregama said,

As technology changes, we need to move on. We are content owners and anywhere the consumer is going, we need to follow him, whether he is moving to the Internet or MP3 for music. Saregama’s website will hit the markets in the next two-three months.

Indeed, their store is really under up-gradation. Retailers have realized the trend in the Indian market and are adding Digital Kiosks in their stores to offer downloads as driven by the the consumer demand. 49% of them play this music on their MP3 players while 40% on their Laptops and 33% on their phones. With the prices of good quality handsets hitting new lows, expect mobile music and entertainment to grow futher, though we really need some good batteries to keep it rocking for a day 🙂

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2 Comments

  1. Does Saregama hold 65 percent rights, or does T-Series hold 75 percent rights? 😉

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