Battling the problem of stagnant physical music sales, music companies are positioning themselves as music entertainment companies. Players in the industry like Saregama, Sony BMG and Universal Music are waking up to new revenue streams like music-based value additions like mobile ring tones and full song downloads.
Simultaneously, the entry of content aggregators like Mauj Telecom, Hungama and Yashraj Films into the music domain points to the highly competitive scenario that the industry will witness in the next few years.
A report by Soundbuzz, PricewaterhouseCoopers and IFPI says that the year 2007 will witness the digital music industry surpassing physical music in sales. So, for total sales of Rs 4,100 crore in 2009, Rs 3,600 crore would be contributed by mobile music, while physical music will have a share of only Rs 500 crore, the report says.
Recent surveys have also shown that VAS like ring tones and ring back tones are a major hit with the consumers and are opening up substantial revenue streams for the music companies.
Source: Hindustan Times
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