The Indian Music Industry & SaReGaMa

The Indian Music Industry & SaReGaMa
MG 785: Group Project
Aditya Banerjee - 08927850
Phani Raj- 08927896
Pramit Joshi- 08927815
Shishir Pol- 08927808
SushantWaghmare- 08927827
Vasant M V- 08927807

Agenda
Music Stakeholders – Labels, publisher, online,
KE concepts – Commons, New Business Model, Technology
Current Online trends – Global
Current Indian music scenario
New Biz Models
Sustainability
Reference

Music Stakeholders
Artist
Professional Musician
Labels
Recording Studios
Event Managers
Consumer
Regulators

Utilization of KE Concepts
Creative Commons
Copyrights
Technology as Enabler
New Business Models
Long Tail
Social Networks

SaReGaMa
The Company

Ratio Analysis - SaReGaMa

Financials – SaReGaMa/Tips

Reactions down the memory lane
Disruptive technologies & copyright

Technology Innovations
And parodies…

Copyright for the masses
1906
2004

The Enforcers
MPAA
USA
Canada
Australia
UK
International
India
Entertainment Industry associations around the world

Creative Commons
“The commons” — the body of work that is available to the public for free and legal sharing, use, repurposing, and remixing.
Standardized way to grant copyright permissions to their creative work.
“All rights reserved” to “Some rights reserved.”

What Creative Commons Offers to Music business?
Promotion to the artist and his records
Allows artists to reach larger audience
Build upon reputation
Foster interaction between music members
Encourage artistic and future exchange
Freedom from economic pressure of big companies in releasing any kind of work
Bypassing traditional distributors and publishers

Will it change the face of music business?
Relationship between the parties involved in the music business
Artists are dependent on the work of others
The internet not creative commons makes disintermediation or cutting the middle man
Creative commons is all about skipping the intermediary
Only small record labels have agreed to license their work under the creative commons model
Big record labels already have a established system with lots of artists and work of art with them with market reach
Big record labels make a lot of money out of the current copyright system
Creative commons model will jeopardize their present business model , revenues and even their existence.
Stakeholders not yet clear how creative commons model will fit within those agreement signed previously.
Creative commons model is helpful in limited situation and not in all

The International Scene
Technology as the enabler

Online Music Stores
Major license revenue for labels

Music Streaming

Portability
New Media
The Good Enough Revolution
New Devices

Online Radio
Major opportunity to recommend & guide users to purchase channels

E-merging trends
Music recommendation engine acquisitions
Game changers
Search & recommendation the key

The Indian Scenario
Technology followers?

Music Streaming
Revenue from licensing

Music Downloads?
Where are the legal sources?

Amateur Publishing

Crowdsourcing
Commons
Social Networking
Prosumer friendly

Personalization Services
Multiple revenue sources: License, service charges, partnership

Mobile Downloads

Mobile Music Exchange
Growing demand for music content on mobiles
Indian Music Industry (IMI) launched Music Mobile Exchange (MMX)
MMX a 7-member body comprising SaReGaMa, Aditya Music, Tips, Venus, EMI, Sony and Universal
MMX license - mobile stores/shopkeepers can legally sell music without violating the Copyright Act
MX licence - for a period of one to three years, at a minimal cost of Rs 1500- 5,000 per month per computer

The Value Chain
Evolution over the years

Past

Present/Future

Where’s SaReGaMa?
Technology leader/follower/laggard?

SaReGaMa.com over the years
2004
2009
2006
2001
1997
Focus seems to be on Hamaracd.com rather than SaReGaMa.com
Source: http://web.archive.org/web/*/SaReGaMa.com

SaReGaMa on iTunes Store
License revenue

Hamaracd
Personalised Audio CD
Video Catalogue

rajshri.com
Some Partners

Business Models
Putting it in action

Key Observations
Copyright infringements still a major worry
Key revenue streams online
Advertisements
Licensing
Value added services
Freemium models quite popular
A large user base is the best asset online
Long Tail can be manipulated
Fattening
Recommendations

Business Model Ideas
Policy to give away old tracks/single track from new albums under a CC license
Generates publicity
Draws people to channel
Charge for remastered/modified tracks (Classics’ Revival etc)
Subscription based streaming service
Purchased tracks remain in the cloud
Multi device applications to play purchased tracks
Allow DRM free downloads of purchased tracks
TV channel
Store with studio
CSR: Sponsored music labs in schools
Bands & Artists under the SaReGaMa umbrella

Music from the Clouds
Business Model 1

Do P2P users buy more music?
Studies conducted by CRIA & in UK indicate that people who download music illegally from the internet spend more on music purchases than or equivalent to those who do not
UK Study
Caveat: Survey relies on consumer recall & accuracy of information
CRIA Study
Can it be extended to India?

Some numbers – iTunes Store Sales

Music from the clouds
Alternate pricing strategies:

Pay what you like
Demand based ~ airline tickets

SaReGaMa Online Service
Special terminals at outlets to customise service as per customer’s needs
Medium of customer’s choice: USB, CD, DVD etc
Price:
Rs 10-15 per track (PPP$)
Subscription services
Promos:

Reward points
Discounts

Individual Consumer
Corporate Partners

SaReGaMa Bands
Business Model 2

Music Band Touch points

SaReGaMa Band

What’s in it for a Music Band?

Consumers of Band Music
Assurance of quality
Search time reduction
SaReGaMa Experience
Professional Service
Value for Money

How does it benefit SaReGaMa?
Can promote songs under its label
Expands its networks of music
Platform to distribute merchandise
Brand recall increase
Commission on performances
Content Creation
Could get consumers to collaborate

Image sources
Wikimedia.org
http://techperspective.com/?p=7
www.hamaracd.com
Flickr.com
http://www.loc.gov/exhibits/bobhope/images/vc36.jpg

Reference/Links
http://www.indianmi.org/newsletter/Dec1/GurmeetInterview.html
http://www.indianmi.org/newsletter/November1/Subroto%20Interview.html
http://contentsutra.com/article/419-SaReGaMa-plans-online-music-store-whos-going-to-change-the-game/
http://www.rajshri.com
IpsosMediaCT survey in UK: http://www.independent.co.uk/news/uk/crime/illegal-downloaders-spend-the-most-on-music-says-poll-1812776.html
CRIA study in 2006: http://support.crtc.gc.ca/applicant/docs.aspx?pn_ph_no=2006-1&call_id=29786&lang=E&defaultName=Canadian%20Recording%20Industry%20Association%20%28CRIA%29
http://www.wired.com/gadgets/miscellaneous/magazine/17-09/ff_goodenough?currentPage=all
http://arstechnica.com/tech-policy/news/2009/10/100-years-of-big-content-fearing-technologyin-its-own-words.ars
Indian Music Publisher’s Annual Reports
http://www.india-server.com/news/indian-music-industry-launches-music-7227.html