JioSaavn- The Revenue Model And Business Model

🔍Insights

Sandhya Raju

Mar 12, 2021 — 7 min read

Jio is one of the topmost companies in India and it has a lot of potential customers. It is headquartered in Mumbai, India. In March 2018, JioMusic and Saavn merged in a deal worth $1 billion. After this, Saavn and JioMusic rebranded as JioSaavn.

The merger was a huge advantage for both Jio and Saavn. The main reason for the merger was to attract an extensive user base. Also, with this, Saavn could strengthen the leadership in India and also get the connectivity and digital ecosystem of Jio. JioSaavn’s business model has been one of the most successful business models since the merger.

JioSaavn - Customer Value Proposition
JioSaavn - Key Partners
JioSaavn - Revenue Model
JioSaavn - Effect of Covis19
What New Features Are The Main Reasons For A Wider User Base?
An Endnote
Frequently Asked Questions

JioSaavn - Customer Value Proposition

JioSaavn is a platform that has songs from 14 different languages. Also, people who come up with new podcasts and independent music can post their song on JioSaavn. This has helped them establish their talent and has hence been used a lot by them. Users can make a proper playlist and they can also choose from the curated charts and playlists that JioSaavn makes according to the needs of the user. Also, the search filter is a very interesting feature. Using this, one can filter the search with artist, songs, album, radio and so on. This has a lot of songs from various genres and languages.

The next facility that is available to the users of Jio is JioTunes. Using the JioSaavn app, users can very easily set caller tunes. There are a lot of choices available for this. If the song is not available, the user can request for the song to be added to the list of caller tunes.

JioSaavn - Key Partners

JioSaavn has partnered with many different various companies in different domains to achieve better revenue and reach. Here are a few of JioSaavn’s key partners.

Amazon: JioSaavn was the first music service in India that came out on Alexa and other voice assistants that were linked to Amazon.
Shazam: As a part of this partnership, Saavn’s music library was incorporated in Shazam. Shazam had a lot of customer engagement tools that gave a better music listening experience to the customers. This helped Saavn get a wider range of audience. With additional tools and better experience, customer rating also got better. This partnership helped them get better.
Android and iOS apps: JioSaavn has made apps to run in almost all the platforms. It first came out on Android and then on iOS. Now, it can also be found on the Chrome Web store.

Other partners of JioSaavn are Sony Music, T-series, Eros, Warner Music and so on. Every key partner has added value to the revenue of JioSaavn and has helped them grow bigger. The partners also include Nokia, Samsung, Lays, general motors and so on.

JioSaavn - Revenue Model

Revenue From Subscription

JioSaavn is not a fully free app. It allows users to subscribe and hence get ad-free music experience. This is called JioSaavn pro. If the user is new to the application, then they get 3 months free access to JioSaavn pro and then you get back to the normal platform. If the user wishes to extend the pro service, he or she has to pay and renew the subscription. JioSaavn gets some of the revenue from this subscription fees. Though this is entirely not their revenue source, this contributes a good per cent of the revenue.

Revenue From Advertisement

Apart from the revenue from the subscription, JioSaavn gets revenue by displaying ads relevant to the user. Advertisements from this digital platform generate higher revenues. A lot of different brands display ads on JioSaavn. This is only for the users who haven’t taken the subscription for JioSaavn Pro.

JioSaavn - Effect of Covid19

Listeners usually listen to music in the morning. The only free time they get is during work travel. But with the spread of coronavirus, the first half listenership has gone flat. The reason for the reduction in the work from culture. Meanwhile, the listenership hasn’t gone down in the least.

The second half of the day has seen a huge increase in usage. This is mostly due to people doing their chores enjoying music. There is also a huge change in the type of music people listen to. Before the pandemic, people start their day with music. Thus they listen to energetic songs to get themselves ready for work.

Now, people have opted to listen to nostalgic and sweet melodies trying to relax their way to sleep. With lazy home working, people also changed the device to TV or speaker against smart phones.

What New Features Are The Main Reasons For A Wider User Base?

The monthly growth rate preceding the pandemic was as high as 10 per cent. While post-pandemic, the growth rate got closer to 6 per cent. This did not mean a decrease in the usage of the app. The growth rate decreased due to the rapid increase in unpaid users.

The increase is due to the updated features that the app provides for its pro users. It provides combined music with added lifestyle rewards. Many other offers have also been launched in partnership with companies like SkullCandy, SarvaYoga, etc.

An Endnote

With data on the type of music that users listen to, artists are encouraged to create original music. By understanding the users, new artists are discovered and their work is promoted. The same is done for music in a variety of languages to promote region-specific content. This increases the listenership of local artist originals while also increasing user base.

The marketing of the app has also seen various changes between the pre and post COVID pandemic. The pre-COVID marketing was a stream first approach which leveraged the huge database. While there might not be a complete changeover, there is a significant change since the pandemic began. Marketing has become more offer oriented and based on partnership promotions.

Frequently Asked Questions

How does JioSaavn make money?

jioSaavn makes money through advertisement and subscription model. If you are new to the app you will get three month free trial. Later you would have to pay being able to download songs and advertisement free experience.

Is JioSaavn only available to Jio users?

No, JioSaavn is available for all and it is free for all. You can listen to all your music, create playlists, set JioTunes, manage your music library, get music recommendations and much more. A Jio user can launch app on cellular data experience pro features free for 3 a months.

Does JioSaavn pay Artists?

Yes. JioSaavn, one of the most popular streaming service in India, pays just $0.00126 per stream. So, if the local instalments of Spotify, Apple Music and YouTube Music have to match the price of JioSaavn's offer — well, you can expect that the regional per-stream payout will be comparable.

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