Music streaming app Gaana expects to double the number of monthly active users on its platform to 200 million in the next two years representing around 50 per cent share in the overall market, a top official of the company said Wednesday.
"With increased competition, the market stands at about 160 million total online music listeners. That will go to 400 million in the next two years. We will continue to be the market leader. We will get next 100 million (monthly active) new listeners in two years," Gaana Chief Executive Officer Prashan Agarwal said on the sidelines of achieving 100 million monthly active users (MAUs).
He said the next 100 million MAU will come for the company from Tier-III towns and cities.
"Today, only 10 per cent of market is consuming music online in legal way. That number needs to go up to 500 million over the next 2-3 years and that will happen on the back of investments. Investment is needed to penetrate deeper in the market. Next 100 million will come from Tier-III cities," Agarwal said.
The company raised USD 115 million last year, which includes USD 100 million from Chinese company Tencent and USD 15 million from Times Internet.
"This will continue to be an investment market for next 3-5 years. We have seen 100 per cent growth in revenue year-on-year. The market needs to mature first then listeners will be willing to pay," Agarwal said.
Currently, Gaana claims to have 80 per cent users from top-20 Tier-I and Tier-II towns across the country.
Gaana offers free streaming music service but some facilities like downloading songs is available to paid subscribers. Agarwal said that with data connectivity improving, most of the users prefer music streaming to download.
The company claims to have 15 per cent listeners from Maharashtra, 12 per cent from UP and 10 from Delhi. It claims to have recorded the fastest growth of 96 per cent in Tier-II cities, followed by 84 per cent in Tier-I and 78 per cent in Tier-III cities in 2018.
When asked about competition with telecom operators-owned free music app, Agarwal said Times Internet has reached 400 million customers through various apps. "That installed base is always available to us to double dip and give them Gaana experience. If a user gets used to consuming music online then he stays with us. We are working with the like of Vivo to pre-load our application in Vivo mobile phones," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)