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@3GSM India: Monetizing Music For Class Tier-Two Towns

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The session on mobile music began with Pankaj Sethi, President VAS for Tata Teleservices giving a brief talk on mobile music that sells (as opposed to, I guess, music that is pirated). So far, he said, music has been sold as singtones and CRBTs, but the next growth phase will target tier-two towns and first time users. Music will have to be inexpensive for them, so how can it be monetized? According to their salespersons, the demand for FM handsets is high in these towns, and CRBTs have a 15 percent regional content, Bollywood has 54 percent, Indipop has 6 percent and International music has 3 percent uptake. English still corners 51 percent of the market, Hindi has 33 percent, Tamil – 6 percent, Telugu – 7 percent and Kannada – 3 percent. Tata Teleservices experimented with pricing models, which Sethi feels are key for success: differential pricing for subscriptions to games and applications worked for them. Key to success: devices that support music ringtone download and FM, and local content. He also wonders if music downloads will be an upmarket thing, and whether they will be limited by handsets. Tata Teleservices launched a full song download service that allows users access to music at Rs.50 a month, with music stored with the ASP, and unlimited downloads. The content is protected by a DRM and created using BREW. Zubin Dubash, GM-VAS for Tata Teleservices later showed me the application on his phone, where they had a Maruti banner on top of the song list, with a click to call option for a contest. Advertising supported services seem to be the way to go, but how thin can advertising spread itself across various media?

Jan 29, 2007 12:11 AM ET

Posted In: Entertainment, Music, Mobile

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