3 ms·

One of the successful startups in India (Flipkart - An Amazon clone), a couple of days back shut down it's digital music store Flyte [0]. Here's the statement b

One of the successful startups in India (Flipkart - An Amazon clone), a couple of days back shut down it's digital music store Flyte [0]. Here's the statement by the Head of Digital Media Payments “We have realized that the music downloads business in India will not reach scale unless several problem areas such as music piracy and easy micro-payments etc are solved in great depth. Which is why, we feel that at present, it makes sense to take a step back from Flyte MP3s and revisit the digital music market opportunity at a later stage.” It gives some insight on the issues with digital music market in India. Some of it may be even applicable (or already included in this article) for other startups too. The keywords being "piracy" (free loaders) and payment technology constraints (micro payments etc.). [0] http://www.nextbigwhat.com/flyte-mp3-shutdown-297/ http://www.nextbigwhat.com/flyte-mp3-shutdown-297/

nikhilpahwa 13y ago
I've explained why http://www.medianama.com/2013/05/223-why-flipkart-shut-flyte-music/ http://www.medianama.com/2013/05/223-why-flipkart-shut-flyte... after speaking with several people involved in the deals with flyte (from the label site as well as flipkart) I don't buy this reasoning from Flipkart: they knew what they were getting into when they started Flyte - they had to change consumer behavior, piracy deal with payment issues, work with a really myopic music industry looking to leech every potential partner. It's just that they were in a rush to launch the business and got it wrong from the get-go. Paying minimum guarantees was a bad idea, and then they didn't back their investment with marketing support. They're willing to burn money to grow their physical goods business, but not willing to support the digital goods business. Shutting it down in just a year is ridiculous. these things take time to be built out, to build consumer traction. The institution that Flipkart.com is wasn't built in a year. There's no reason why Flyte should have been expected to be.

nikhilpahwa 13y ago

I've explained why http://www.medianama.com/2013/05/223-why-flipkart-shut-flyte-music/ http://www.medianama.com/2013/05/223-why-flipkart-shut-flyte... after speaking with several people involved in the deals with flyte (from the label site as well as flipkart) I don't buy this reasoning from Flipkart: they knew what they were getting into when they started Flyte - they had to change consumer behavior, piracy deal with payment issues, work with a really myopic music industry looking to leech every potential partner. It's just that they were in a rush to launch the business and got it wrong from the get-go. Paying minimum guarantees was a bad idea, and then they didn't back their investment with marketing support. They're willing to burn money to grow their physical goods business, but not willing to support the digital goods business. Shutting it down in just a year is ridiculous. these things take time to be built out, to build consumer traction. The institution that Flipkart.com is wasn't built in a year. There's no reason why Flyte should have been expected to be.