www.WirelessFederation.com/news: Mobile Music has become the largest contributor to Value Added Services Revenue of the mobile operators in India. In a recent announcement, India’s largest telecom operator by subscribers’ number, Bharti Airtel has claimed its Music Bhartiâ€ to be the largest music company in India ahead of another giant of the music industry, Saregama. After this announcement by Deputy CEO Sanjay Kapoor, it becomes easy to understand why Bharti Airtel decided to set up separate divisions for Mobile Entertainment and Mobile Commerce.
Meanwhile, there are doubts regarding the top slot claimed by Bharti after beating Saregama. Saregama has still not revealed its financial results for 2008-09 whereas Airtel has generated Rs. 708 crores from music distribution in 2008-09 (FY09). But having a glance of the financial results of the two companies in the year 2007-08, Bharti Airtel emerges as a undisputed king by generating Rs. 458.4 crores in FY08 while Saregama earned 143.7 crore.
Though music is not produced by Airtel, it contributes to the revenue of the company through distribution via caller ringback tones, mobile radio and music on demand. Earnings from SMS service has already being superseded by the money generated by music. Rs. 481.3 crores of Airtel’s Value Added Services (VAS) revenues in Q4 was not from SMS but from this non-SMS component.
Airtel collects and sells music from many music publishers like Saregama, T-Series, Yash Raj Films, UTV, Rajshri Films, and several publishers from SIMCA and it has not yet decided to enter into the field of music publishing.