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A growing number of Indians travelling to their workplaces are increasingly using mobile phones, iPods, MP3 players and other such devices.
Does that signify the end of the CD and cassette age in India?
"Not so soon, because PC and broadband penetration is slow in India; but eventually it will happen," says Mr Farokh T. Balsara, Industry Leader (Media & Entertainment Practice), Ernst & Young. A FICCI-Pricewaterhouse Coopers study, titled `The Indian Entertainment & Media Industry – A Growth Story Unfolds,' has suggested that the growth in the digital music space is likely to overtake the revenues of CDs and cassettes in the next five years. |
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Second-largest Market
The digital music space is estimated to grow at 15 percent to INR 1800 million by 2011. In fact, by the end of 2007, India is expected to become the second-largest market in the world outpacing physical formats.
The study highlights the fact that the industry is losing around USD 53 million despite many initiatives to reduce piracy. According to the FICCI-Pricewaterhouse Coopers study, there are close to 500,000 illegal ringtone downloads in India, everyday.
"In India, smarter companies will adopt dual strategies of presence in physical and digitised music format. Internet media is something they can no longer ignore," says Mr Balsara.
Mr Sunil Meghrajani, Controller (Publishing & New Media), Saregama, believes that one format cannot be replaced by the other, but will complement each other, giving more choice to the consumer.
"I might want to have my music system running when my friends come over, but while travelling I may use my mobile phone or iPod."
Companies such as Saregama, T-series, Rajshri and others have a limited presence in the digital music space. However, some more music companies (approximately 8-10) are likely to enter the digital music space in the next two years.
Saregama had planned to launch its music portal by June end. It was expected to comprise approximately 300,000 songs from its content base and music from other record labels. It is likely to be Asia’s largest music Website with approximately 500,000 songs at the time of launch.
"It will be a one-stop shop for all music requirements starting from downloading ringtones, purchase of DVDs and VCDs of Hollywood films, customising of one's own music CD as per choice of tracks and more," says Mr Gavin Dabreo, Marketing Head of Saregama |
