Music apps in India had a hard time finding a place amidst Google Play Music. Most of the users in India own an android phone which led to the use of Google Play Music. It was the most used app before certain Indian companies stepped in with their own music streaming platforms. Applications like Gaana, Saavn, and even Wynk contributed to the Indian music streaming scene.
However, a few years ago, Reliance Jio entered the market and has been a revelation of sorts. It not only took over the mobile networking market but also marked its place in the music streaming industry. Saavn and Jio became the ultimate growing platforms. It was only understandable that the two fastest-growing applications joined hands to outdo everyone else in the market, and that is what happened.
Reliance Jio announced its plan to buy huge stakes in Saavn in March. Acquisition of the same has been finally completed. Saavn is now no longer the same, it has been rebranded and renamed to JioSaavn. Right after the acquisition was announced in March of this year, its combined time spent on app went from 32.5% to 37.8%. This has also seen a stupendous decline in the time spent on Google Play Music. It came down from 45.7% to 40.0%.
That said, JioSaavn is now available for all the Apple users. They have officially launched the app on iOS. All the Jio postpaid and prepaid users will get a 90-day free subscription of the Pro version of the app. It claims to have 45 million songs at 320Kbps audio resolution. All the iPhone, iPod and iPad users with iOS version 8.0 or above can enjoy this app immediately.
The look of the app is the same as before, the features will be the same only the name, logo and the money involved will change. The entirety of this acquisition stands at $1 billion. JioMusic’s valuation out of that $1 billion stands at $670 million. Reliance Jio has agreed to invest $100 million in JioSaavn to expand the joint venture. This takeover will see the trio of founders keep the place at JioSaavn and lead it to further success.
That said, the JioSaavn app is out on iOS and Android. Android users wait is apparently over. The app was first released only for iOS but a day later the Android users get theirs. JioMusic has been turned to JioSaavn and Saavn remains as a standalone app for Android.
However, there is another angle to this merger. Spotify, a world-leading music streaming platform is planning to enter the Indian market. They are only months away from launching their application for the Indians. Spotify is, anyhow, largely active only in three regions; North America, Europe, and Latin America.
– Unmesh Phule