Why is Flipkart shutting down its online music store Flyte Music a little over a year after launching it? While the company is unwilling to comment on it, beyond saying that there are issues related to music piracy and lack of easy micro payments, industry sources told MediaNama that there is more to it than just that. The questions that we were trying to find answers to - Flyte is just over a year old, so why shut it down so soon? What lessons are there in this for content businesses? Flyte Music had struck deals for India based music downloads on web and app by paying music labels an aggregate minimum guarantee (MG) of around $1 million (Rs 5.5-6 crores) for the year, multiple sources told MediaNama. Given the advent of music streaming services like Gaana*, Saavn and Dhingana, where users could stream music for free, but more importantly, the prevalence of piracy, the number of users willing to pay for a-la-carte music was fairly limited. Revenues from song downloads were fairly low - not even 50% of the minimum guarantee amount (only around Rs 2-3 crore is what we heard), and the ARPU was around Rs 9-12 per user, which made it difficult to justify the minimum guarantee, and any significant customer acquisition costs. More importantly, revenues from Flyte Music grew in a linear manner, unlike Flipkart's physical goods business, which was growing exponentially, month-on-month. Flyte, with low revenues and low growth, remained a low priority business, and it never got the…
- Large, Mature Cos Don’t Need Much Time to Comply with Data Protection Law: 15 Talking Points from the DPDP Act Consultation September 20, 2023
- NASSCOM suggests reducing telecom regulation, not adding new rules for communication platforms in response to TRAI’s OTT regulation consultation September 20, 2023
- Complaint filed against ticket reselling site Viagogo for reselling ICC World Cup tickets at inflated prices September 20, 2023
- UK Competition Regulator Drafts Principles To Address Unfair Practices In Artificial Intelligence Markets September 20, 2023
- Follow SC Guidelines on Internet Suspensions in the Future: Jharkhand HC Tells State Gov September 20, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...