Ronnie05's Blog

Is India’s digital music business opportunity a dead business model?

Posted in Industry updates by Manas Ganguly on June 22, 2013


The music industry is officially dead! Or so it would seem with both the online versions and the brick and mortar versions failing to make it through. Sample the following-

1. Less than 18 months post launch, Flipkart shuttered down its digital music store Flyte, giving the reason that India’s download market ‘will not scale’.
2. After 16 years, and 40 outlets spread over 50000 square feet area, the RP-Sanjiv Goenka group is also shutting down its Music World operations under pressure from falling margins per store.
3. Perhaps lesser known in India, social music player Tunewiki is shutting down operations after 5 years of launch.


All these direct to the one thing – Digital Music as a business opportunity is busted. Online Piracy (, streaming services and other ad-supported music content have taken over – and there isnt enough innovation in the current business models around music to make money on content. What has saved movies is the 3D content which is still a crowd puller at theatres – an experiential thing for which viewers are ready to pay. Alas! The business of Music didnot have any such innovations to sail it through.

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