The strategic merger doesn’t mean the end of Saavn, as a stand-alone music streaming service, though.
Mukesh Ambani-led Reliance Industries Limited is acquiring stake worth $104 million in home-grown over the top (OTT) media distribution service Saavn. RIL, has announced, that it will invest up to $100 million (with $20 million upfront) to build a «media platform of the future» combining JioMusic and Saavn, that would aspire to become the «largest streaming service in the world.» The acquisition is subject to customary closing conditions.
The strategic merger will see the creation of a platform (JioMusic+Saavn) valued at over $1 billion, with JioMusic’s implied valuation at $670 million, RIL has announced. The strategic merger doesn’t mean the end of Saavn, as a stand-alone music streaming service, though. The company will continue to operate the OTT media platform available on all app stores with the three co-founders of Saavn, Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, continuing in their leadership roles and «driving growth of the combined entity.»
Although little is known about this ‘combined entity’ and how it will go about offering its services, RIL has said, the integrated business «will be developed into a media platform of the future with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums.»
«The investment and combination of our music assets with Saavn underlines our commitment to further boost the digital ecosystem and provide unlimited digital entertainment services to consumers over a strong uninterrupted network. We are delighted to announce this partnership with Saavn, and believe that their highly experienced management team will be instrumental in expanding Jio-Saavn to an extensive user base, thereby strengthening our leadership position in the Indian streaming market,» Akash Ambani, director, Reliance Jio, said.
JioMusic, according to Reliance, has been India’s fastest growing music streaming app for over 60 consecutive weeks. Boasting of over 16 million HD songs across 20 languages, JioMusic is however exclusive to Jio customers. While services like Saavn can be accessed via any SIM and network, JioMusic requires users to have a verified Jio ID which invariably means they must also have a Jio SIM card to boot. JioMusic is included as a free service for Prime users who can make use of it for a year by paying Rs 99, and then opting for a Jio tariff plan. It would be interesting to see how things pan out for Saavn post the merger.
«Our alignment with Reliance enables us to create one of the largest, fastest-growing, and most capable media platforms in the world,» Rishi Malhotra, co-founder and CEO at Saavn, said.
Saavn is a leading domestic music streaming service. But, it also has competition, that’s only growing by the day. Not only does it have other domestic players like Gaana and Wynk, there’s competition from international brands like Apple Music and Amazon Prime Music too. There are reports that Spotify, which is the world’s largest music streaming service, may be coming to India soon. The online streaming scene in India is rapidly changing, and the Reliance and Saavn merger is proof, the competition is getting fiercer.
