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.
1. 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
2. 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
3. Music Stakeholders Artist Professional Musician Labels Recording Studios Event Managers Consumer Regulators
4. Utilization of KE Concepts Creative Commons Copyrights Technology as Enabler New Business Models Long Tail Social Networks
13. The Enforcers MPAA USA Canada Australia UK International India Entertainment Industry associations around the world
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15. 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.”
16. 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
17. 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
32. 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
37. 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
42. 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
43. 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
45. 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?
54. Consumers of Band Music Assurance of quality Search time reduction SaReGaMa Experience Professional Service Value for Money
55. 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
57. 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