With Reliance Jio going all out to promote 4G and its VoLTE services and others operators like Airtel, Vodafone and Idea trying to match or excel in this India’s data rush, seems to have opened up a pandora of opportunities for allied sectors. In a recently released report, FICCI-KPMG suggested that India’s digital music is growing at phenomenal rate and generating 70% of total music industry business, thanks to availability of high speed data.
The FICCI-KPMG Media and Entertainment Industry Report 2017 said that the music industry is expected to grow to Rs 2,540 crore by 2021 from an estimated Rs 1,220 crore in 2016 at a CAGR of 15.8%. The report also highlight that digital music now generates an estimated revenue of 70% of the overall size of the music industry, while synchronisation, performance rights and physical channels contribute the remaining share.
In 2014, Nielson in its report had said that 27% of the population around the globe discoversed new music from music streaming apps, a trend that was growing by 7% annually, thanks to the ease of tuning into the music from around the world on the go.
“Wider smartphone coverage, cheap data plans and proliferation of streaming service providers such as Gaana and Saavn have driven growth. The reach of the digital medium has also prompted large music labels such as Saregama to move into this segment,” points out Swarnava Adikhary, senior economies and consumer analyst, Euromonitor International to FE. As consumers adopt digital streaming as a medium for music consumption, the market is seeing the entry of newer contenders, in addition to established players like Saregama, Gaana, Hungama, Saavn, etc.
Recently, ticketing company BookMyShow launched its music service — Jukebox. “During our research and consumer studies, we realised that we can play a significant role in this (audio entertainment) space,” says Aditya Kuber, associate VP—audio entertainment, BookMyShow to business daily adding, “With Jukebox, we aim to ease the consumption of audio entertainment by creating a destination that is different, fresh and highly engaging.”