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The Indian Music Industry & SaReGaMa


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A presentation made as a part of the "Managing with New Business Models in the Knowledge Economy" course in SJMSOM. It deals with the past, present & future of the music industry, particularly in India and the way forward for a company like SaReGaMa that is one of the major publishers here.

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The Indian Music Industry & SaReGaMa

  1. 1. The Indian Music Industry & SaReGaMa<br />MG 785: Group Project<br />Aditya Banerjee - 08927850 <br />Phani Raj- 08927896<br />Pramit Joshi- 08927815<br />Shishir Pol- 08927808<br />SushantWaghmare- 08927827<br />Vasant M V- 08927807<br />
  2. 2. Agenda<br />Music Stakeholders – Labels, publisher, online, <br />KE concepts – Commons, New Business Model, Technology<br />Current Online trends – Global<br />Current Indian music scenario<br />New Biz Models<br />Sustainability <br />Reference<br />
  3. 3. Music Stakeholders<br />Artist<br />Professional Musician<br />Labels<br />Recording Studios<br />Event Managers<br />Consumer<br />Regulators<br />
  4. 4. Utilization of KE Concepts<br />Creative Commons<br />Copyrights<br />Technology as Enabler <br />New Business Models<br />Long Tail<br />Social Networks<br />
  5. 5. SaReGaMa<br />The Company<br />
  6. 6.
  7. 7.
  8. 8. Ratio Analysis - SaReGaMa<br />
  9. 9. Financials – SaReGaMa/Tips<br />
  10. 10. Reactions down the memory lane<br />Disruptive technologies & copyright<br />
  11. 11. Technology Innovations<br />And parodies…<br />
  12. 12. Copyright for the masses<br />1906<br />2004<br />
  13. 13. The Enforcers<br />MPAA<br />USA<br />Canada<br />Australia<br />UK<br />International<br />India<br />Entertainment Industry associations around the world<br />
  14. 14.
  15. 15. Creative Commons<br />“The commons” — the body of work that is available to the public for free and legal sharing, use, repurposing, and remixing.<br />Standardized way to grant copyright permissions to their creative work. <br />“All rights reserved” to “Some rights reserved.” <br />
  16. 16. What Creative Commons Offers to Music business? <br />Promotion to the artist and his records<br />Allows artists to reach larger audience<br />Build upon reputation<br />Foster interaction between music members<br />Encourage artistic and future exchange<br />Freedom from economic pressure of big companies in releasing any kind of work<br />Bypassing traditional distributors and publishers<br />
  17. 17. Will it change the face of music business?<br />Relationship between the parties involved in the music business <br />Artists are dependent on the work of others<br />The internet not creative commons makes disintermediation or cutting the middle man<br />Creative commons is all about skipping the intermediary<br />Only small record labels have agreed to license their work under the creative commons model<br />Big record labels already have a established system with lots of artists and work of art with them with market reach<br />Big record labels make a lot of money out of the current copyright system<br />Creative commons model will jeopardize their present business model , revenues and even their existence. <br />Stakeholders not yet clear how creative commons model will fit within those agreement signed previously.<br />Creative commons model is helpful in limited situation and not in all<br />
  18. 18. The International Scene<br />Technology as the enabler<br />
  19. 19. Online Music Stores<br />Major license revenue for labels<br />
  20. 20. Music Streaming<br />
  21. 21. Portability<br />New Media<br />The Good Enough Revolution<br />New Devices<br />
  22. 22. Online Radio<br />Major opportunity to recommend & guide users to purchase channels<br />
  23. 23. E-merging trends<br />Music recommendation engine acquisitions<br />Game changers<br />Search & recommendation the key<br />
  24. 24. The Indian Scenario<br />Technology followers?<br />
  25. 25. Music Streaming<br />Revenue from licensing<br />
  26. 26. Music Downloads?<br />Where are the legal sources?<br />
  27. 27. Amateur Publishing<br /><ul><li>Crowdsourcing
  28. 28. Commons
  29. 29. Social Networking
  30. 30. Prosumer friendly</li></li></ul><li>Personalization Services<br />Multiple revenue sources: License, service charges, partnership<br />
  31. 31. Mobile Downloads<br />
  32. 32. Mobile Music Exchange<br />Growing demand for music content on mobiles<br />Indian Music Industry (IMI) launched Music Mobile Exchange (MMX)<br />MMX a 7-member body comprising SaReGaMa, Aditya Music, Tips, Venus, EMI, Sony and Universal<br />MMX license - mobile stores/shopkeepers can legally sell music without violating the Copyright Act<br />MX licence - for a period of one to three years, at a minimal cost of Rs 1500- 5,000 per month per computer<br />
  33. 33. The Value Chain<br />Evolution over the years<br />
  34. 34. Past<br />
  35. 35. Present/Future<br />
  36. 36. Where’s SaReGaMa?<br />Technology leader/follower/laggard?<br />
  37. 37. over the years<br />2004<br />2009<br />2006<br />2001<br />1997<br />Focus seems to be on rather than<br />Source:*/<br />
  38. 38. SaReGaMa on iTunes Store<br />License revenue<br />
  39. 39. Hamaracd<br />Personalised Audio CD<br />Video Catalogue<br />
  40. 40.<br />Some Partners<br />
  41. 41. Business Models<br />Putting it in action<br />
  42. 42. Key Observations<br />Copyright infringements still a major worry<br />Key revenue streams online<br />Advertisements<br />Licensing<br />Value added services<br />Freemium models quite popular<br />A large user base is the best asset online<br />Long Tail can be manipulated<br />Fattening<br />Recommendations<br />
  43. 43. Business Model Ideas<br />Policy to give away old tracks/single track from new albums under a CC license<br />Generates publicity<br />Draws people to channel<br />Charge for remastered/modified tracks (Classics’ Revival etc)<br />Subscription based streaming service<br />Purchased tracks remain in the cloud<br />Multi device applications to play purchased tracks<br />Allow DRM free downloads of purchased tracks<br />TV channel<br />Store with studio<br />CSR: Sponsored music labs in schools<br />Bands & Artists under the SaReGaMa umbrella<br />
  44. 44. Music from the Clouds<br />Business Model 1<br />
  45. 45. Do P2P users buy more music?<br />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<br />UK Study<br />Caveat: Survey relies on consumer recall & accuracy of information<br />CRIA Study<br />Can it be extended to India?<br />
  46. 46. Some numbers – iTunes Store Sales<br />
  47. 47. Music from the clouds<br />Alternate pricing strategies:<br /><ul><li> Pay what you like
  48. 48. Demand based ~ airline tickets</li></ul>SaReGaMa Online Service<br />Special terminals at outlets to customise service as per customer’s needs<br />Medium of customer’s choice: USB, CD, DVD etc<br />Price:<br />Rs 10-15 per track (PPP$)<br />Subscription services<br />Promos:<br /><ul><li> Reward points
  49. 49. Discounts</li></ul>Individual Consumer<br />Corporate Partners<br />
  50. 50. SaReGaMa Bands<br />Business Model 2<br />
  51. 51. Music Band Touch points<br />
  52. 52. SaReGaMa Band<br />
  53. 53. What’s in it for a Music Band?<br />
  54. 54. Consumers of Band Music<br />Assurance of quality<br />Search time reduction<br />SaReGaMa Experience<br />Professional Service<br />Value for Money<br />
  55. 55. How does it benefit SaReGaMa? <br />Can promote songs under its label<br />Expands its networks of music<br />Platform to distribute merchandise<br />Brand recall increase<br />Commission on performances<br />Content Creation<br />Could get consumers to collaborate<br />
  56. 56. Image sources<br /><br /><br /><br /><br /><br />
  57. 57. Reference/Links<br /><br /><br /><br /><br />IpsosMediaCT survey in UK:<br />CRIA study in 2006:<br /><br /><br />Indian Music Publisher’s Annual Reports<br /><br />