Exclusive-Fighting to survive, Tencent-backed Indian music app Gaana turns to subscriptions
By Aditya Kalra and Munsif Vengattil
NEW DELHI (Reuters) – Tencent-backed Indian music streaming app Gaana has switched to a paid subscription mannequin to attempt to keep away from closing down after failing to safe recent funds, based on an electronic mail from the corporate to its music companions seen by Reuters.
Gaana, additionally backed by India’s Instances Web, mentioned within the electronic mail that talks with a possible acquirer had additionally “fallen via”.
Gaana competes with the likes of Spotify, Apple Music and Indian telecom large Bharti Airtel’s Wynk music app in an Indian streaming market estimated by knowledge agency Statista to be value $700 million this 12 months.
Within the electronic mail despatched this week, Gaana’s head of content material and partnerships, Sachin Kamble, mentioned the corporate had not been capable of “usher in recent investments” and sought help for a brand new paid mannequin of the service.
“Now we’re at (a) crossroads – wind down/discover a strategy to proceed … now we have determined to offer this one other attempt. Therefore, now we have closed streaming without cost customers in the present day and (are) transferring to paid solely mannequin,” Kamble wrote within the electronic mail.
“We’ll want your help on this, else we should shut down fully.”
Gaana CEO Sandeep Lodha informed Reuters in a textual content message: “We aren’t shutting down”. Kamble declined to remark.
Requested concerning the inside electronic mail, a Gaana spokesperson mentioned in an announcement the message was despatched to music companions “in the middle of non-public negotiations” to shut agreements.
“These statements are being learn out of context. Gaana is a powerful enterprise that’s rising its deal with subscription enterprise with an intent to be an enduring firm for years to come back,” it added.
(Reporting by Aditya Kalra and Munsif Vengattil in New Delhi Enhancing by Sanjeev Miglani and Mark Potter)
