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Saavn Claims Revenues In Low Seven Figures; Content Costs?

So up until now, we were under the impression that Saavn was owned entirely by Hungama: apparently not. Time reports that the Bollywood content network is co-owned by Hungama, and it is “a competitor turned partner.” So what, then is BODVOD, and what is the relationship between Saavn, BODVOD and Hungama? We wonder if Hungama’s done such deals with any other company; they do own a controlling stake in Naukanki.tv

Saavn claims to have revenues in the “low seven figures”, and expects 2009 revenues to be in the “low eight figures”, a growth of more than 500%. For Saavn, music is a substantial revenue stream, most of it probably coming from Hungama, and its well known tie-up with T-Series.

What we’d like to know is – is this amount of “low seven figures” inclusive of the payout to telecom operators in the US? Even if it not, given that this is a content distribution business, a significant amount must be paid out to content owners. Therefore, one needs to look at content costs as well, not just the revenues.

Apparently, the success of Slumdog Millionaire has been something of a shot in the arm – Ed Ruth, director of V-Cast Music at Verizon tells Time that they’ve seen a substantial increase in the sale of Bollywood music content.

P.s.: We’re at FICCI Frames tomorrow. Do get in touch with me by SMS at +919810310053 if you’re there.

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



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