Product Life Cycle for Music Streaming Product - JioSaavan
Updated: Aug 24, 2021
Music Streaming Industry in India. With the advent of technology in India, Music streaming is becoming a hot bed for fierce competition from various players in the Music industry in the country. Indians are quickly catching on to the trend of listening to music through apps. This is a slow but gradual evolution. Digital music streaming is emerging as a mainstream channel for those on the move.
An Indian consumer on an average, spends anywhere between 20 to 22 hours per week listening to music. The global average is 17.89 hours a week. Contributing to these statistics, is the fact that India is still an emerging market for smartphones, and it has some of the cheapest Internet Data rates in the world.
JioSaavn is one of the entrants trying to make its mark in this fairly nascent industry.
JioSaavn’s journey so far: It was founded in 2007 and was formerly known as Saavn, and since has acquired rights to over 50 million music tracks in 15 different languages. The company is currently valued at $ 1 billion USD, post a much awaited merger was announced between Saavn and JioMusic on 23 March 2018. The merger was completed in December 2018, which led to Saavn being re- branded to JioSaavn.
JioSaavn basically works like any other Freemium music streaming service where basic features are free with advertisements or limitations ,while additional features such as improved steaming quality and downloads are offered via a paid subscription. The pricing model works as follows : ₹99 per month on Android / ₹120 per month via ITunes on iOS ® 399 per year on Android and iOS
As of 2020, JioSaavn has been steadily capturing the market share in the India.
Second largest player in terms of time spent on music, close on the heels of Gaana.
Second largest player after Gaana in terms of Market share
Currently, JioSaavn has over 100 Mn monthly active users (MAU) with audience across 150 countries. It offers more than 50 Mn tracks in 15 regional languages which include Hindi, Tamil, Telugu, Punjabi and Gujarati among others. The music streaming app had secured 1st position in Fast Company’s list of top 10 Indian firms in Most Innovative Company on a country basis. JioSaavn is the only Indian company that was ranked 28th and managed to find a position in the top 50 most innovative companies across the globe. Having clocked an estimated $18 million annual revenue, as of March 2019, JioSaavn counts Gaana, Hungama, Wynk, Amazon and new entrants Spotify and YouTube Music as competitors. Given the huge market size of the Music streaming industry, JioSaavn currently is at the Early Adopters Stage of the PLC (Product Life Cycle) with a potential to grow into Early Majority based on some of its core strengths like user interface, customer experience, wide collection of songs, regional languages, etc. (Refer Definitions below)
Innovators: The very first group of people to invest into a product are known as the Innovators. They include journalists and tech savvy reviewers who keep a watch on the market and are the first ones to test the product. Early Adopters: Like Innovators, Early Adopters are the part of the crowd who are willing to test the waters. This segment usually consists of people who are greatly passionate about any new product that launches in the industry and love to get their hands into testing these products. They are usually the first chunk of market that will buy the product. Early Majority: This segment consists of people who will buy only tried and tested products in the market , they stray away from new products and services which have no reliable market response to prove its value. Early Majority read blogs & watch reviews by the Innovators & Early Adopters to convince themselves. These are mostly millennial’s who have a new / different perspective towards the industry. Late Majority: The Late Majority consist of people who are skeptics ,that need a little more convincing than just basic product reviews in order to buy products . These are usually people who aren’t exposed to new technological developments and are mostly comfortable with using their current product. The urge to switch to the latest technology does not necessarily arise here. They comprise of one of the later sections of the market which will buy your product. Laggards: Comprise of the type of people who will buy any product after all the hype around the product has died down. Sometimes, Laggards purchase a product years after it’s been released. They don’t buy the product until much later in the product life cycle.
Position of JioSaavn: JioSaavn currently is entering into the Early Adopters segment of the market and has a relatively good scope to advance its position to the Early Majority.
Conclusion: JioSaavn has secured a fair share in the music streaming industry in India and is continuing to put in its efforts to grow and acquire more customers and audiences. As reiterated by Akash Ambani, Director, Reliance Jio, : “JioSaavn represents a turning point for the music streaming industry in India, as the country continues to experience accelerated tech innovation, rapid adoption of digital services, and a digital music industry at par with global leaders”. Sources : https://telecomtalk.info/jiosaavn-spotify-comparison/215694/ https://entrackr.com/2019/09/jio-saavn-secures-rs-240-35-cr-reliance-industries/