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Saregama Puts Up Digital Kiosks In Nokia Stores…Why Kiosks?

Saregama India has installed 25 digital kiosks in Nokia stores in Chennai, Bangalore and Hyderabad, with around 30,000 tracks available for purchase, reports Business of Cinema. Saregama has content from EMI Virgin, Sony BMG, Venus, HOM Records, among others. Consumers need to connect via USB to download songs at Rs. 12 and above.

Now here’s the problem: not many people walk around with USB sticks in their pockets (do you?), so it’s likely that only people buying new handsets which come with a USB cable are likely to use it. Even then, the grey market offers better prices (from zero to Rs. 40-60 per cd). During a conference a while back, someone had mentioned setting up kiosks for retailing content. After the session, I asked him whether the returns justify the cost of the kiosk. Never, he said. Anyway, in a country like India, it’s probably cheaper to hire someone for transferring content via bluetooth, rather than pay for purchase and maintenance of a kiosk.

11 Responses to “Saregama Puts Up Digital Kiosks In Nokia Stores…Why Kiosks?”

  1. Hi,
    Verity Technologies from Bangalore has tied up with HP to come out with Mocazo India semi self-serviced kiosks to retail mobile content. The kiosk itself is powered by a HP IPaQ PDA and uses bluetooth to transfer content to the phone. What is also interesting is that they have a pre-paid voucher mechanism that customers use to buy content.
    Content is supposedly refreshed using the IPaQ's Wi-Fi connection.
    Wouldnt it be cool if they could use the SDIO slot on the IPAQ to offer content on SD cards? This way one could buy 1/2 GB worth content in one go!!

  2. I've only heard about these kiosks but have never seen them. I thought they were a great idea and possibly a better option than downloading the music from the carrier. Does this work with any NOKIA phone? Which locations in Mumbai and Bangalore are they available in? Has anyone used these kiosks? How is the experience?

  3. i think the concept is great to bring awareness to handest buyers with legit music. It gives the opportunity to play your content as proudly as you display your handset.It is high time that people should realize music is something that one enjoys and should be acquired thru purchase and not robbed !! We all buy them legitimately across the world, so why not here? I am sure when I buy a handest for 5k, I will not flinch to spend another 100 bucks to load legit music .Kudos to Nokia and the team.

  4. Ruchi Pant

    Retailing content is one thing which is bound to grow with major players in VAS realising its potential especiallyw the VAS industry heading northwards at that too a tremendous space.
    In India with Operator getting the bulk of the revenue share the CPs, aggregators all are looking for ways to go outside the Operator billing Zone.
    Many CPs like phoneytunes, hungama etc have ventured into Retailing.
    But its indeed a very expensive proposition – with major investment in hardware, software and manpowere mgmt. The way to go is coming together of parties specialising in their segments this would maximise benefits to all parties concerned and minimise cost.
    However rather than increasing revenue share for the parties concerned retailing initially would help increase popularity and bring in new users.

  5. Piracy in music/ entertainment content is now something that content owners are learning to live with.
    The only proven way of countering piracy to some extent is to make content available to consumer when he needs it, before the pirates do.
    This is phenomenon behind Hollywood flicks and the more recent Bollywood flicks – trying to have World wide releases or "World Premiers" i.e. Movie releasing across the world on the same day.

    Entertainment content is usually an impulse purchase. You like something you just heard – u cross a store thats retailing it – the cost is not something that hurts u – u buy it – need fulfilled.

    Also, content today has extremely short shelf life. Demand here today – gone tomorrow. If you havent serviced it in within the limited period, you've lost the opportunity to sell.

    The best way to counter it would be to make content available to purchase at every possible avenue.

    Saregama's move towards putting up Kiosks is not about battling pirates with pricing but with availability and accesibility. How many of us really have regular access to pirated products?

    The thrust on Physical sales for Saregama should come by way of 'Modern trade'. Taking their MP3 CDs (priced at 75 rupees for 80songs!) just about every Kirana store and Paan shop with the distribution muscle of an ITC/ HLL.

  6. Nikhil I feel that SaReGaMa's kiosk venture ,which is otherwise actually powered by NXP Philips (correct me if I am wrong) is an ideal venture. The logic behind the Nokia Jukebox kiosks is that they are attempting to adopt and capitalise on the impulsive buying behavious of customers. Consider this…

    A person walks into the Nokia store. Purchases a mobile that will allow him/her to have music and in this process the salesman makes apitch to the client for legal download of the songs. All he needs to do is to pay upfront for the songs he likes and at that moment if his favourite songs are available then why not download there and then.

    SaReGaMa has been smart in adopting this model (if it is with NXP Philips). All the music label does is to provide the content and in a smart rev share model the music label has now an alternative route to earn revenues, which at the present moment may not be high but like all trends it should catch up. My hunch is kiosks like the one started by Giritrading in Chennai and others work well for 20% of the loyal and honest music listeners. 80% revenue will follow thereafter. :) On that note just wanted to share the news that even Music Today is on the same front. Digital downloads from us will soon be available across Nokia priority stores too. And the investment is nill except the digitised music and a revenue share!!!

  7. Ranveer Khanna

    interesting stuff started by saregama but i don't understand one thing till date 3 lac or more ipods sold in india and all of them have music on it and this is transfered to a computer and saregama is giving service thru kiosks at nokia stores cool a brilliant idea

    but god bless them on their investment

  8. well the reasons why phone connectors dont work is the simple fact there is no simple one size fits all connector, too many sub types to manage inventory ( of connectors and I/O ports in the PC) and aesthetics at store.

    The concept of self service kiosks i think is apocryphal except in the case of ATMs and information to some extent , all kiosks will need to be manned and manned well for the venture to make any sense.

    On an excel sheet or a ppt for that matter , the business makes a lot of sense but operationalization of this at a shop level making sure the delivery is consistent , fast and hassle free is a different challenge.

  9. @namitha: Do you know whatever happened to those kiosks?

    Bluetooth kiosks sound like the most practical way to retail ringtones (given the limited 'browsability' on the phone to find the correct content), just wondering why we don't see more of them.

    Also, what about bulding phone connectors into the kiosk rather than rely on the user to provide his own USB cable?

  10. namitha

    i remember phoneytunes had tied up with planet m sometime last year to set up kiosks where users could download ringtones and full songs via bluetooth transfer.