Mukesh Ambani's Reliance Jio, after disrupting the telecom space with its often free and cheaper services, is now all set to disrupt the content market. Jio's next venture in the content foray, after Jio TV, has taken it to digital music service Saavn.
Mukesh Ambani’s Reliance Jio, after disrupting the telecom space with its often free and cheaper services, is now all set to disrupt the content market. Jio’s next venture in the content foray, after Jio TV, has taken it to digital music service Saavn and the duo together is planning to build ‘India’s largest platform for music, media, and artists’.
Reliance Jio and its parent company Reliance Industries to Friday signed an agreement for the integration of JioMusic with Saavn to create a digital media platform with global reach having a total value of over $1 billion. Moreover, RIL will invest up to USD 100 million, out of which rupee equivalent of USD 20 million will be invested upfront, for expansion of the platform into one of the “largest streaming services in the world”.
RIL is also acquiring partial stake from the existing shareholders of Saavn for $104 million. “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,” Reliance Jio Director Akash Ambani.
While RIL is India’s largest private sector conglomerate with its businesses ranging from petrochemicals to telecommunications, Saavn, founded in 2007, is one of South Asia’s leading digital music streaming services. In 2016, Saavn expanded its content offering into Saavn Original Programming, a slate of original, non-music audio programs that range from Bollywood to comedy and storytelling to cricket
In September 2016, RIL’s Jio launched cheap 4G services in India, making its competitors uncomfortable. A Bloomberg column said that it was Jio’s vision to exploit the content and commerce market through its 4G services was the reason the behind its success in such as short stint. A recent data showed that the customer base of Reliance Jio grew 7 times more than its immediate rival Airtel.