2.1.

3 Market trends
The music industry has changed. Nearly every rule has been broken or reinvented. Fans consume music
differently, and as a result artists get paid differently. The landscape of music industry has seen generous
changes when internet began to take over the music industry. It was in 2015 when we first saw numbers
changing significantly, with smartphones taking the lead and physical sales dropping year after year. What
this means is that music industry will continue take on its digital form in 2018.
The country recently surpassed the U.S. as the world’s second-largest smartphone market, which
is estimated to reach 450 million users by 2020. Moreover, with increase in the number of smartphones
manufactured domestically (augmented by Make in India), which has direct ties to music streaming.
T-Series is a dedicated Indian music YouTube channel which has world’s 2nd largest subscription base of 56
million subscribers. With this large amount of music consumers in India, we can see a continuous growth in
all the directions

2.1.4 Market Growth

 Last year, digital revenue alone was Rs 665.6 crore, or Rs 95 crore greater than the music industry’s
combined revenue of Rs 570.7 crore in 2016.
 Increased data consumption following the introduction of cheaper data rates as well as higher
smartphone penetration are reported to be the two main factors driving the positive growth of digital
music consumption in India.

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company and describes
the opportunities and threats facing Pegasus.

2.2.1 Strengths
■ Knowledge and creativity
■ Innovation

2.2.2 Weaknesses
■ The reliance on contributors for creating the database of lyrics
■ Proof reading of vast lyrics data with less available workforce

2.2.3 Opportunities
■ Excellent User Interface
■ Expansion to Video service as well
■ Creating a huge database of lyrics
■ Expanding the services to other regional languages as well
■ Live audio streaming of different music concerts along with lyrics
■ Tie up with musicians, lyricists, speakers
■ Steady & Swift Market Penetration

2.2.4 Threats
■ Stiff and severe competition from existing apps
■ Inefficient PR, Communication
■ Lyric generating Technology can be copied unless it is patented
■ Future/potential competition from an already established market participant