Why 🎵 music labels is unique business model ? @NeilBahal
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1. High Entry Barriers
It's not easy to create catalogue of 1 Lk songs in short time. Each movie will have 4-5 songs and in a year about 100 movies might be released,
so about 500 songs will be produced in a year. To create catalogue of 25000 songs it will need 50 years. Industry will keep consolidating, as bigger players will acquire the smaller music labels.
2. Get the acquisition costs recovered in 3-5 years and keep the content with you for lifetime without any incremental costs.
Keyword : Without incremental costs
3. Value migration from ad-based music to paid music
Ad-based music listeners are about 7x of paid premium music listeners while revenues from them are 22x more compared to ad-based revenues. This is the data of international market. In India opportunity size much higher !
4. Mobile phone users in India & Cost of 1 GB Data in world in $
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