MUMBAI: On his maiden trip to India, Simon Wheeler, digital director of Beggars Group realised the challenges his businesses would have to face in the Indian market. Wheeler in his short trip was part of the panel discussion 'The Streaming Story' that took place during the two-day Nokia Music Connects 5 Conference.
Speaking with Radioandmusic.com, Wheeler said, "The price factor in the Indian market will be a major challenge as back home our operating cost will be the same, but revenue and pricing of the product here will be much lower. The only way to generate revenue will be through the advertisement model. The other challenge will be to understand the Smartphone penetration in India, or else the reach will be difficult." According to research firm IDC, the Indian smartphone market grew by 229 per cent year-on-year to 12.8 million smartphones in Q3 2013 as compared to 3.8 million units in Q3 2012.
He made it clear that price differentiates this part of the Subcontinent from its western counterparts. He also discovered that Streaming is a new model in India as compared to western countries.
Wheeler who was an artiste himself said that he is willing to sign artistes around the world. "The only concerns for Beggars Group would be the quality of music artistes deliver, he said." The group houses independent record labels- 4AD, Matador, Rough Trade and XL Recordings. Artistes under these labels include Adele, Arcade Fire, The Avalanches, The Prodigy, Radiohead, Vampire Weekend and The White Stripes to name a few.
He also said that working with more companies makes it difficult to communicate and connect with them so he prefers to have a limited number. At the same time, he believes that organic growth is healthy. "It is an organic company and we believe in growing slowly, he added."