)
In a first, global music giant Sony Music Entertainment has bought a strategic 26 per cent stake in Ahmedabad-based Infibeam Digital Entertainment (P) Ltd (Indent) for an undisclosed amount.
A digital platform for large and medium music labels in India and abroad, Indent, is an arm of the Ahmedabad-based e-commerce platform Infibeam. Under the agreement, Infibeam will hold majority stake in Indent while Sony Music will hold a 26 per cent stake.
“There was always an operator coming between us and pretty much hampered the music industry growth while the operator earned 70-80 per cent of revenue share for a mere 30 second content. As the digital eco system keeps evolving, there has been a strong need for an independent technology company that music companies can partner with to build innovative services and offerings. With the Indent platform now, content companies and brands can talk directly to consumers for music and other related applications,” said Shridhar Subramaniam, President India and Middle East, Sony Music Entertainment.
According to Subramaniam, the music industry in India is currently valued at around Rs 1000 crore, with Hindi/Bollywood music forming 50 per cent, followed by regional (30 per cent), international (10 per cent) and devotional (5-7 per cent), among others. “The industry is expected to grow at the rate of 15 per cent,” Subramaniam added.
Using the Indent platform, any music label or brand holding rights to content can use the Indent platform to engage customers and monetize by distributing digital as well as physical content under their own brand with payment integrations.
While it already has four labels on board including Sony Music and The Indian Record Manufacturing Company Ltd (INRECO), Indent looks to expand by adding more labels and brands in near future, said Sachin Oswal, co-founder and COO at Infibeam.
“We will continue to invest and upgrade the infrastructure. Indent will continue to build state-of-the-art inclusive digital platforms powering music applications installed on millions of mobile phones and providing high quality experience to music lovers. Indent will enable brands, technology and music on common interface with innovative customer engagement models,” said Vishal Mehta, founder and CEO of Infibeam.
According to Mehta, the company will invest around Rs 100 crore over the period of next three years on Indent. Indent is projecting revenues of $3-5 million (Rs 18-30 crore roughly) in current year.
