The transition from feature phones to smartphones, the information rates being the least expensive on the planet, combined with the way that Indian purchasers go through 21.58 hours out of every week tuning in to music (outperforming the worldwide normal of 17.89 hours seven days), there are a horde elements supporting the development of the Indian music streaming business sector.
With the recent advent of global players like Spotify and YouTube Music in the fray, the music streaming market is transitioning from its infancy stage and is poised to grow further, according to industry players and experts. Personalization and localization seem to be the growth drivers now.
"The entry of Spotify and YouTube Music will further quicken the development of music streaming. A year ago's merger of Jio-Saavn was estimated at Rs 7,000 crore. With the extreme challenges in the music streaming space, with in excess of seven dynamic players-Gaana, JioSaavn, Apple Music, Amazon Prime, Google Play, Hungama, Sound Cloud-and the ongoing section of Spotify, there will be significant consumer offers leading to increased offtake, according to Lloyd Mathias, senior technology executive and former Asia-Pacific Marketing Head of HP.
The worldwide music streaming business sector is about US$ 8.9 billion, about twofold the size of the physical music advertise. In India as well, streaming is growing quickly and is today the biggest lump of the Rs 850 crore household advertise, representing around 66% of the market and developing quickly. As per a Deloitte report, of the five advanced music income streams in India-membership sound streams, advertisement upheld streams, video streams, downloads, versatile personalization and other computerized 60 percent of the income originates from streaming.
In the meantime, closer home, Hungama Music, claimed by Hungama Digital Media, sees the coming of these worldwide players as a chance. Referring to reports, Siddhartha Roy, COO, Hungama Digital Media, expressed there are around 150-180 million music streaming clients now, and throughout the following 2-3 years, it will arrive at about 500 million clients. "To me, that is a serious chance. It's not about the messiness today. In mature markets, there are multiple services out there, and in the same way, India is not very different pointing out how India has various global services and local services available in the larger Indian context, citing the example of the broadcast medium.
However, the conversion from free users to paying users is still minuscule at about one percent on these apps. Piracy is another worry. The information cost being high in India until a couple of years back was another factor that prevented individuals from making the move to music streaming. The dearth of loyalty or stickiness is another troubling variable in the Indian music streaming space.
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