The Nokia Music Connects Conference had some interesting revelations regarding where the online music streaming segment is headed. Times Internet CEO Satyan Gajwani chose the platform to share that Gaana.com, the music streaming platform with presence on mobile and web will be opening up its ecosystem, to encourage app development,
“We will be working with developers to use Gaana’s music library as a base. We have a partnership with Karaoke Garage, which lets people sing songs and get rated. We want users to find new ways of engaging with labels.”
The implications of this decision will surely be far-reaching and will have long-term impact on the music streaming segment. This is because Gaana appears to be suggesting a fundamental alteration to the very nature of the business.
Gaana, like many others in the business of offering high quality music via multiple channels of revenue streams, provides songs to listen via its web presence and mobile apps across majority of mobile operating systems. However, these songs are available only for streaming. One cannot generate ‘files’ of the songs for distribution. Musical content and copyright owners will surely be uncomfortable to allow third party services to use Gaana as a means of creating their own apps. Owners have always been shown to be finicky about how their content is being consumed and distributed.
Despite this delicacy of the nature of business, Gaana’s popularity should help it strike multiple agreement deals, shared a confident Gajwani, “Consumption will drive revenue in the long run, and create communities of users who care about the music, more so in India, than anywhere else. In the US you have a pay per download model. If you actually think about the only legal way, it’s’ going to be skewed towards streaming services.”
At 7.5 million monthly active users and adding about 1.4 million per month, Gaana is certainly a strong force to be associated with. Maybe Gaana will have to keep the apps within its own app and website ecosystems to appease all the parties involved and yet expand its footprint via 3rd Party App Development. What do you think?