Avinash Mudaliar, co-founder and former Head of Gaana.com has crossed over to the label-side, joining Saregama as its Head of Internet Products and Services, we’ve learned, from a note that Saregama MD Surya Mantha sent out.

Saregama now has three key ex-Web18 executives: Mantha himself was CEO of Web18, Mudaliar was involved with setting up In.com, and Keshaw Sinha, previously Vice President and Technology Head at Web18, was appointed as Saregama’s CTO in May 2013.

This is an interesting development from the perspective of where Saregama goes from here: Mudaliar had been instrumental in building two web based music streaming products in both the music initiative from Web18’s In.com, as well as Gaana.com at Times Internet.

Saregama’s music portal is badly in the need of an overhaul, and to be honest, has needed an overhaul ever since it was launched, and with every subsequent redesign.

The note that went out from Mantha also mentions that Mudaliar will be responsible for Saregama’s Youtube business, as well as some new branded product initiatives that he hasn’t named.

Mantha appears to be leading a transformation of Saregama into a primarily digital business, especially with the venture having chosen to license out the physical music business to Sony DADC, and we had expected this when he joined Saregama at the beginning of the year.

The subtext here is that music is digital, and now the music label with arguably the largest catalog in India is moving in that direction. Others will follow suit.