E-commerce company Infibeam has setup a new subsidiary called Indent, which intends to provide a cloud-based technology solution to enable companies to build and monetize digital music services.
Offerings: According to a media statement, Infibeam will offer solutions to music labels, brands and OEMs to build both streaming and download-based services across the mobile and web platforms. The company also claims to offer an easy billing process and payment gateways for these music services.
So it looks like the Infibeam has taken the tech platform approach rather than building a standalone music store like Flipkart’s Flyte. However, there is currently not much information on how the service will work and how brands will sign up for the service to setup their own online music storefronts.
That being said, Infibeam CEO Vishal Mehta stated that they do plan to launch an online music store in the future, but refused to give any specific timeline, as indicated by a TechCircle.in report.
Sony Music India Partnership: Along with this launch, Infibeam also stated that Indent has signed a multi-crore digital service agreement with Sony Music Entertainment India. While the financials details of the agreement remained undisclosed, Infibeam stated that it will be offering three new products to Indian consumers as per the agreement. These include:
– An International music streaming service called Jive HD which claims to have inked license agreements with various other labels including Universal Music Group (UMG). The service is currently available on Windows 8 platform but the company intends to extend the service across other platforms.
– Launching a Sony Music Website which will allow consumers to buy songs from the entire Sony Music Entertainment catalog. There is no information on when the company plans to launch the website. The company also plans to build a Sony Music app for Original Equipment Manufacturers (OEMs) which allows them to embed the app in their smartphones and allow consumers buy music through it.
– Launching Brand Redemption Stores which will allow brands to pre-buy music and offer it with new product purchases or as loyalty rewards to their customers.
BuildaBazaar Platform: It’s worth noting that the company already has a self-service e-commerce platform called BuildaBazaar which allows brands to setup their own branded online stores, by offering the ability to upload their own product catalog, organize their merchandise, make their own PG (payment gateway) integration, track orders and sell it on Infibeam.com and Infibeam Affiliate stores in addition to their own private stores. In addition, it also allows business to sell Infibeam products on a commission basis.
The company had claimed that more than 15,000 stores had been setup on the platform as of August 2012, including the recently launched Airtel Shop and prominent offline retailers like The Mobile Store, Crossword, Hidesign, and TTK Prestige among others. It had also recently extended the platform to travel segment, allowing travel agents to setup their own travel e-commerce stores and offer travel inventory from various travel industry partners including flights, hotels and buses to earn commission for each booking made on their site.
Hence, it is not clear if the company has extended the same service to music segment or it has built a new service from scratch for this initiative.
Pricing: There is no information on the pricing of the service. For context, Infibeam currently offers BuildaBazaar service through three different monthly packages, starting from Rs 1000 Silver plan for a basic e-commerce store (< 300 products) going up to Rs 2500 Gold plan for businesses (< 5000 products) and a custom Platinum plan for corporates (25,000 products and more). Additionally, the company also charges a flat 2% and a flat 1% transaction fee for the Silver and Gold plans. There is currently no setup fee and it offers a 15-day free trial period.
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