Snap seals music pact with JioSaavn
Music appears to be working well for Snap (SNAP) in its efforts to retain Snapchat users and attract more people to the app. The company has partnered with JioSaavn to allow subscribers to share songs with family and friends across the Snapchat app in India. JioSaavn, one of India’s top online music services, boasts a massive song library. It is also one of the many businesses associated with Indian billionaire Mukesh Ambani.
Last year, Snap partnered with Pandora, which is now owned by Sirius (SIRI), to allow Pandora users to share songs with their Snapchat contacts. The music-sharing deal with Pandora was first reached in July 2018 and expanded a few months later. Between that deal’s initiation and the end of March 2019, Snapchat gained 2.0 million daily active users.
Massive Indian music partnership opportunities for Snapchat
Snap’s music-sharing agreement with JioSaavn is part of its strategy to grow in India, where its market share lags behind that of competitors such as Facebook (FB) and Twitter (TWTR). India loves music. Deloitte reports there were only 27 million online music consumers in India in 2015, and forecasts the country to have over 270 million by the end of 2020. The figures show that the opportunities for Snap to leverage music in India are many. Amazon (AMZN), one of Snap’s strategic US partners, and Tencent (TCEHY), a big Snap investor, are prominent online music providers in India. Tencent owns a stake Gaana, one of the country’s leading music services.