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Mind My Karaoke – Music Business Plan Essay

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Executive summary

Karaoke is a Free Web based Application Software for pc , Smart phones and tablets. it is Initially Designer for the Indian Music Industry where people are Interested in social Networking and interacting with each other through various Mediums. Karaoke will appear close to Social networking, with a Fresh and New concept of people making their own karaoke version of their favorite latest songs from All Different languages all over India and share it With their friends and Well wishers, using it as an Recreational medium. With Increasing and Unbelievable Piracy rate in India Karaoke will help The record Companies , Artists and the Consumers as well.

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A Web based Application Software, where sharing Karaoke songs and Interacting with friends is new and easy to adapt and interesting as well. The Karaoke offers up to date Original karaoke tracks with good quality and voice modulating options for the amateur singer who use it as a recreation and Fun. The karaoke itself acts as an Social Networking Medium where it meets Facebook , Twitter and Sound Cloud which are one of the Top rated Social mediums in this generation to make it more Interesting.

Business Idea

The Increasing Piracy rate in India, especially in the Music Industry where 95% of the Music Downloaded in India is claimed to be Illegal ( RIAA report – 2010). India when Compared to the Other Countries sadly remains in the top five , with a High piracy rate in the Film Industry. The Film Industry suffered loss of £ 450 476 000 ( INR 4000 00 00 000 ) due to Video and Audio piracy. There is drastic increasing level of music piracy through Online and Offline year by year, where there is no sign of decreasing piracy rate. The Indian Film Industry is a growing Industry where the numbers is on increase. India is the Largest producer of films according to the BBC report 2009. In 2009 India Produced 2961 films on celluloid includes 1288 feature Films. The are more than ten subdivisions in the Indian Film Industry which contains more than ten languages of Films, i.e. Hindi, Tamil, Kannada, Malayalam, Telugu, Assamese, Bengali, Gujarati, Konkani, Marathi, Punjabi, Sindhi and many more. where each state has an unique Language of their own.

Minimum of 100 Movies each from the languages of Tamil, Telugu, Hindi, Malayalam and Kannada release in Cinema theatres every year. 95% of the Movies has Songs which is a typical characteristic of the Indian Film Industry. Each Movie releases a Music Album from the Movie itself containing a Minimum of 4 Tracks which helps the growth of this product. The Main advantage of KARAOKE is the increasing number of people who use social Networking and Applications for Recreations, Fun and staying in Touch with Friends. India ranks Third in the World for Social Networking users. In India now it has become a Fashion that people Express their Emotions in Public through Social Networking Thus karaoke would be an Entertaining application for them. The karaoke also offers the Original versions of the Songs for Download at cheaper Price where the Customer can buy it after Listening to the preview of the Songs. As the Application Software is designed for Multi platform it can be used in Smartphones and Tablets as well This makes the Application Portable and Fun to use it Wherever we are.

The KARAOKE has an Unique Feature of Auto Voice tuning Option, where it helps to cut off Background and Ambience noises making it easy for the Users and it also Helps the Amateur Singers to Tune their Voice for Better Quality and Fun. It provides various Features likes gives a chance to Listen to the Original track for a Limited number of times before Buying are recording the Karaoke Version, in each purchase of a Karaoke Track it offers a Free online Lyrics Script for that Song, where people can even change the lyrics as well, not it any way of offering the Composer, Artist or the Record Labels. The KARAOKE has a new Approach towards the Music Industry where it Helps to Reduce Music Piracy in India. Where people can Buy the songs Only which they like at cheaper price instead of Buying the Whole Album.

KARAOKE soles the Purpose of Interest of the Consumers from All over India who likes Songs and likes to Sing songs. This product will Grab the Kids and Youngsters as well. People in In India are connected to Internet and Social networking most of the Time. Nearly 620 330 040 Facebook Users prevail in India Ranking the Third Highest Facebook Users country in the World. So Publishing and Sharing the Product through Facebook would help and which would also Favor the Facebook. The Karaoke has a Separate Webpage which acts like an Social networking Website where people can like and comment on others Karaoke songs, give an Unique name for their Karaoke song and share them on Facebook, twitter and Sound cloud.

Though KARAOKE is Unique in its own Kind with different Approach towards Karaoke. There are Six Prevailing Competitors for KARAOKE

1. Meraghana.com
2. Redkaraoke.com
3. Taranaa.com
4. Desikaraokedownload.com
5. Karaokehindi.com
6. Latestbollywoodkaraoke.com

SWOT analysis

– new innovation towards karaoke
– works both as social networking and helps music industry from Piracy as well – low cost
– latest songs
– sharing with friends
– can be operated through Mobile Phone and Tablets as Well.|Weaknesses – original karaoke versions released can be pirated
– songs Offending the Composer and Record labels can be made – idea cannot be copyrighted
– low cost options for single songs instead of buying the whole album – listen to the songs for limited number of times before the Download. |Threats
– existing and new competition can arise with similar products – cost of Web hosting and server space in Rise


The Team Consists of Members with Knowledge of Music Industry in India, Music Engineers , Application and Server Maintainers. Software Developers. Me therefore having quite a Good knowledge about the Indian Music Industry and pursuing Audio Production Course acquiring Knowledge in Both Artistic and Technical aspects and having knowledge about the Karaoke Music Interests in India will solve the Purpose. Realizing the Piracy threat and Detailed research how piracy affects the Indian Music Industry helps to bring up this Business Plan. For Additional helps and technical Assistance People will be recruited in Future of the Business if Needed. The Team shall be Expanded in Future of the Product when it goes Global when it is introduced in Other Countries, shall incur Help from the Countries Respectively for Further Assistance.

4. Ownership

The Ownership of this Product this Project would Belong to the Creator of this Product and the Financier of this Project in 15 % and 85% respectively in the Profit Margin. where the Creator would be Developing the Product with Different Ideas and new Innovations making it Interesting for the Consumers. where the Record labels would have Partnership with the Composers and Artists for Making the Karaoke Version, which is Simple with the Same Original Track without the Vocals and the Record Label will have Royalty and Copyright Agreement with the Composer and Artists of the Songs.

5. Company Structure

The Company Structure includes the Team and the Space for Accommodating the Server and Technical Support. Though This will be an Free Application Software the Investors Play a Vital role and they Handle the Artists and Composers regarding the Royalties for each song that is sold through the KARAOKE.


Once the Product is Developed by the Developers for introduced in the Market, it needs Technicians for Trouble shooting and further technical assistance during the First 3 Months of the Product Launch where the Developers will be responsible for Sorting it out according to the Agreement they Have with the Company. Software will be Further Developed and maintained depending upon the Increase in number of Consumers.


The Product KARAOKE is a web based Application Software for Pc , Mobile phones and Tablets. KARAOKE is an Application Software which acts like an Social Networking web where Consumers From India can Sing and make their Favorite Karaoke Songs from All Different Languages in India. The Key Feature of this Product is Consumers have access to use Up to date Latest Karaoke songs from more than 10 Different Languages in India. The Product is Economic when compared to the other Karaoke Web downloads in India, where People can listen and choose their Karaoke songs before buying it, and they can Buy single original versions of the Song they like rather buying the whole Album. KARAOKE has various Facilities where people can sing and manipulate their voice to make it better or Hilarious according to their wish, with Various Vocal Auto Tune Option.

When They buy a Song from KARAOKE, they can sing the Original Lyrics where they would be given a free online Free Lyrics script for that song or they can make their Own Lyrics within the Terms and conditions, Where any Vulgarity or in offence to law shall be immediately removed from the Web. Once they are Done with Recording the Song, they can Upload it only once through the Application, But they can keep their Downloaded Karaoke version With them. Consumers will have all access to Training and Trials on the webpage. When they Uploaded a Song, they can Upload it with different recording again and so they have to buy the Track again for Uploading and they can’t Claim Copyright for their Lyrics or the Tracks. Any Unlawful Act by the Consumers will be taken to Account where they can continue using the Product.

When People report spam or any other Disrespectful to one another, the song shall be removed with further Notice. KARAOKE allows the consumers to like and comment on Others songs and can Rate on others Songs, consumers can Upload their Songs on Facebook, Twitter, Sound cloud and on the Same KARAOKE webpage as well. As KARAOKE web page acts as a Social Networking web, consumers can name their Own songs with the name they like and give a Description or Story For that songs, Where they can express the memories of the songs and Emotions through words. In The Initial Stage of the Karaoke From the Launch of the product till it gets Familiar with the people, they get a Beneficial Package when they Invite people to the Product, they get free Songs and can make their free song and Share it, which helps the Product as a Promotion. KARAOKE is quick to Access even on Mobile phones and Tablets where they all need is Internet and the Product.

KARAOKE will be Introduced as Free Subscription Application Software, Where People get a Free Songs from latest and Up to date songs on the Web, which helps them to know about the Product and get Familiar with and they are allowed to Share the song. They next Benefit they Get is, As they Invite People to the KARAOKE they get a Free Songs After Inviting 20 people as they Join they KARAOKE which makes it More Interesting for them and Which could help them more to know about the product. Where these Beneficial Schemes helps the Product’s Promotion and Marketing and makes it Familiar to the Younger generation who are Active on Social Networking.

KARAOKE will Act as a Fun and Recreational Element. KARAOKE will also sell Original Versions of Up to Date songs at Cheaper price, which helps The Indian Music Industry to Fight Against Piracy. There are More than Hundred Websites which Offers illegal Download, which the Government wants to shut down but the numbers are still on increase and this Product would help Fighting Against Piracy.

Later After making the Product Familiar the Product can be Redesigned to launch in different Countries. KARAOKE after a Steady success, will have a Dealership will Mobile Networking Companies, because in India Many people use a facility called caller Tune where people calling one another would listen to their Favorite song instead of the normal ring, where KARAOKE would offer that they can use their own karaoke song which they made as their Caller Tune, this would make the Consumers more Interesting where they always in a search of Something New.


Having knowledge of Indian Music Industry and being aware of the High Piracy rate in India and the Attitude of the Indian Consumers who are Keen on trying something which is new to the market and which helps to Interact with one another, friends and Family. This Would help them as an Recreation and to stay in touch with each other in an Unique way like ever before. So we understand that people need something new which would help them Forget Illegal Download and make them buy Original tracks and karaoke versions and make this as an entertainment more interesting which already prevails but not quite popular. Here Kotler’s 4Ps of Marketing Help to Address a marketing Strategy (mellow 2009).


The Consumers want to Try something new when Products like this Launches in the Market. They are connected to Social Networking most of the time to stay in touch with One another. As People in India are Music Lovers and Movie Lovers as well they would like to try this product as well. KARAOKE is a fun Filled Entertainment and Recreational solution for the People who Love music and love to make Music where they can purchase Original tracks.

This Product will have a strong connection with the Amateur singers mainly, as they want to sing songs and make it sound good just where they are, and to share it with friends, this will help them to attain what they need. KARAOKE is a simple and effective Application in which they can make their song wherever they are, all they need is a pc or Mobile phone or tablet with internet connection. Karaoke provides more Interesting options which would make it User friendly.


As KARAOKE is a Free Version Application Software, they can Directly Download it from the Web page or through Online Application stares of their Mobile phones and Tablets. After Downloading the Application, when they need to Buy Karaoke Songs and Original Songs, they can Buy it with their Credit Cards and Debit Cards, which the Webpage would give proper Guidance. Another Important point of sale will be through Advertisement links on Facebook, twitter and Sound Cloud, where people can join and purchase the songs on go. No direct cash transaction would take place, everything would go through secured online debit and Credit card payment.


The Product is Very Cheap and Economic when compared to its Competitor although this is a new Innovation and unique of its Kind. The Application
Software would be Absolutely Free with free Upgrades as well. When KARAOKE is compared to it market competitors it is economic, where the competing websites offer monthly and Annual package of £15 and more, which are higher than the KARAOKE, where only few Websites offer single song download which is Much more expensive than our Product.

To make it comfortable for the Consumers KARAOKE offers single songs downloads at cheaper price where if people are not likely interested anymore they don’t have to lose their money. KARAOKE offers Original Songs and Karaoke Version at the same Cost where each of them would be charged £0.11( INR = 10) which is the most cheap and reasonable cost for a Track in the Indian Market. Where as iTunes sells each song at a cost of £0.14 ( INR = 12 ). iTunes when compared to KARAOKE, it is reasonably cheaper. As the this would be an attractive and cheaper price for the Consumers of the Indian Market.

As the Competing Websites Offers Annual Packages, most of the Websites doesn’t Offer Latest songs, which is more likely to be a draw back for their own fortune. where they are more like Forcing to Consumers to purchase the Monthly or Annual Package. where as KARAOKE doesn’t gives the Consumers the Whole freedom where they can choose what they would like to Buy and Use.


The Product will be Promoted in a Number of ways to Target the Younger generation. These people Mainly Include from the Age group of 16 – 35, where the Other Age Group Promotion would also take place. As the First Step of Promotion, The Application Software will be given as a Free Download where People can explore and understand about the Product. The Next step would be that Each and Everyone who had joined the KARAOKE would be given a Free Karaoke Song of their own choice which is Present on the Web. where people will now be allowed to experience the Product and share it with their Friends and get a good knowledge about the Product. The next step of promotion would be with Regional Celebrities from Different languages, will be doing a karaoke version of a famous song and will be out on the Web and social networking sites and their fan Pages ,where it will be shared for promotion, this will help the Product get popular.

The Next Step would be, when people invite more than 20 people and as the invited people join, the Invite would get a free Song again, This will increase the number of users of the product and makes it Quite popular among the Youngsters. Now KARAOKE would have Enough users and they would start liking the product as they Would start Purchasing the songs. Facebook, twitter and Sound Cloud would play an Important Role in Promoting the Product as people make their Karaoke Song and share it with their Friends Online. Advertisements on Social networking sites would take place.

As KARAOKE has new fun filled Features like Auto Voice tune, Funny effects, it is quite easy to get familiar and effective with kids and Youngsters. Later on After getting steady market and Consumers, KARAOKE will have collaboration withe Mobile Network Companies to use their own songs of the Consumers as their Caller Tunes, where we would get paid by the Mobile Network companies and they would be charging from the Consumers. As Each and Every week in India more than 2 Music Albums are released so people will be more Curious about making new karaoke songs and this will add up to their Entertainment.


Primary sales would be through the Official Web page and Application stores of the Mobile Phones and Tablets. where Advertisements about new songs and deals would be Published and shared through Social networking and the Followers in them. Advertisements about the release of new Albums and updates about Upcoming Songs would be done through the Official Webpage and Social networking. As Karaoke Acts as an Social Networking site it solves the Purpose. This would take quality time to Get popular and effective in the Market as this Involves people from Different states and Different Languages from India. As the Celebrity Advertisements would help in Promoting the product will help the sales of the product in a period of Time.

Distribution will be Done in the Web page and in Social Networking sites as well through Advertisements and information, where the Followers would get Up to date information’s. Distribution will partly be done by the consumers as well as they do their song and share it with others, which would be beneficial for both the Consumers and the producers. After a number of people had acquired and account with KARAOKE, the next step for the company would be upgrading the product to make it useable for a large number of people and making it user-friendly after receiving feedback from the Consumers.

8. Competitors

KARAOKE faces Competition in two Different ways, thought KARAOKE is a whole new different product from their competitors. One way of Competition would be through Existing Websites which are available for Karaoke songs Downloads. The other way of Competition would be through the Duplication of the Product and piracy of the Tracks released through KARAOKE. There are Six main competing websites, which shall be stated below and compared with KARAOKE.

1. meraghana.com :
which offers a Subscription Plan for $4.95 (INR = 270.67 , £ = 3.05) a Month and $49.95 (INR = 2731.27 , £ = 30.76) a year for unlimited usage. The cost of this Product is very High for the Consumers as meraghana.com has very fer consumers. which doesn’t offer any new Songs and concentrates on a Single language from India and it does not offer any free additions like the Lyrics script and Movie Information’s.

2. Redkaraoke.com
Which Offers a Subscription plan for $2.99 (INR = 163.49 , £ = 1.84) a Day , $6.99 (INR = 382.21 , £ = 4.30 ) a Month and $39.99 (INR = 2186.65 , £ = 24.63) a Year, where there rates are too high even for a single day subscription and they do not offer any new songs or sharing facilities and there is no add on to the Product as much.

3. Taranaa.com
Which Offers a Yearly Subscription for $20 (INR = 1093.60 , £ = 12.32 ) a year. They do not offer any monthly Subscription or single song Download options was KARAOKE does and they do not Offer any new songs which disappoints the Consumers, and they do not offer different languages.

4. Desikaraokedownload.com
it is a free karaoke songs downloading Website, though it is illegal Downloads its Quite Popular where people can download the karaoke songs and record it separately on their own devices, where as the website does not produce any facilities for recording and Sharing the tracks. As it is an illegal download there is no proper quality of the tracks.

5. Karaokehindi.com
Where Each Track Cost $5 ( INR = 273.40 , £ = 3.08 ) which makes it too expensive for the consumers when compared to the other competing websites, and they do not offer any monthly or yearly subscriptions as the other websites do. They offer only old songs and not the Latest tracks which could grab the youngsters attention.

6. Latestbollywoodkaraoke.com
This Website Offers up to date karaoke tracks, including the Latest releases for Free, but it is illegal Download where the songs are not Copyrighted at all. The Tracks which they offer are manipulated poor Quality tracks. Though they provide latest songs the do not provide any recording facilities or sharing facilities.

SWOT analysis for KARAOKE when compared to its Competitors

– Can be used in Mobile phones and Tablets too, which makes it Portable.
– Easy to Use and an Interesting piece of Entertainment.
– Sharing Facilities on Social Networking websites.
– new innovation towards Karaoke because it is unique in its Own kind.

– duplication of the product
– Piracy of Tracks which are released through KARAOKE
– risky promotional Tactics, giving free tracks initially for promotion where the Competitors don’t.
– Heavy investment needed.
– As it is Interesting for the Youngsters to use
– support from music composers and record labels to promote the Product
– it is a free Application Software, which acts like a social networking
– young generations interest in music and making music.

– new customers switching to Similar Forthcoming products.
– people should afford to spend money for buying songs and Karaoke Tracks.
– price / feature war with competitors
– composers can officially release karaoke versions themselves, which would affect them the most again |

As the SWOT Analysis compering the Competitors shows that KARAOKE offers a better deal and new interesting Elements which would attain success in market with the Younger generations Interest on it, Though it has its own weaknesses and threats, by more offers and Advertisements and Development of the Product will help the product to stand up in the Market.

KARAOKE is Unique in its own kind as mentioned earlier and there is no similar product this, though it has competitors. The competing website are expensive and does not offer any New tracks Usually which would make lose interest among the Youngsters, who seek latest updates, even when few Websites offer they are Illegal downloads with Poor Quality. KARAOKE would act as a Social Networking piece, which would impress the Younger generation to spend Quality time on it, this will give back the senses to the consumers where they get used to Buying songs and Karaoke tracks for minimal price rather downloading it illegally.

The Strength of the Product lies in support from the Composers, Artist and the Record labels, as this is a new Innovation where people would like to Invest and make money in return and this would pay the Royalty for the Artist and composer as well. By analysis the characteristics of the competitors has been revealed where they are expensive and drawbacks in different forms, this would give back life to the karaoke involved Entertainment.

9. Customers

The First set of Target Customers are the Younger Generation between the Age of 16 – 35 who are prone users of Social Networking like Facebook and twitter, where the people who are interested in trying new Products, that makes them happy and Interactive. Thus KARAOKE would serve as a medium for their Social interaction through karaoke tracks and their singing abilities. The next set of Target Customers will be from all age group who are Music lovers and who love to Sing, even if they are amateur singers, so this Product will do justice to users from School students to working Professionals. This Product will be beneficial to the Elderly people who are interested in singing prayers songs and other religious songs by themselves.

People From Different states of India would Buy and try out Other Language tracks in which they are Familiar and interested to pursue, there are few Consumers who would know more than one language and are interested in all language songs, this product will help to solve their requirements. As there are Consumers from Different parts of India where each one has different interest towards karaoke and Social Networking as well, this would help to extend the market. As People outside India are interested In Indian Songs and Indian Karaoke Tracks, they would even purchase their likes from this Product and this will help in extending the market of the Product Internationally and Developing the Product.

India ranks third in the use of Social Networking Websites. There are 62 713 650 Facebook users as per the statistics record which has been taken recently, where 48% users are from the Age group 18 – 24 and 27 percent users from the Age Group 25 – 34, which contains the majority of more than 75% below the age group of 35 which shows a number around 47 035 238. Where most of the Youngsters will be Music lovers and interested in making karaoke songs Songs when something new is projected, even when only 2% of the people are interested from the age group 18 -35, there would be nearly 311 650 consumers for this product, So this will be a sure figure where people will be interested in using the Product which is Absolutely good for a new Product during it launch.


Initially the Business team ail require a Time period of Six months for Developing the Software and Trouble shooting them, to make it perfect during the launch of the Product, it may take a month extra for Fine tuning the product for better Outcome. The Initial Investment for the First Six months including Software developing and miscellaneous expenses rather than Software Development will be £12000 (INR = 10,68,000) and £4000( INR 3,56,000) respectively. After completing the Product and after rectifying the Products mistakes, the Product will be ready for it Launch. After the launch we need further investments for Promotion and increasing number of users.

After the Launch, The fresher’s who are new to the Product will be Given a Free song of their own choice, where it is roughly calculated with the number of consumers estimated above, which would cost about £35 016 (INR 31,16,500) where it is a whooping investment. after they invite Twenty more people to the Web and as they join the web application, the Invite would be Giver and additional free song where the figures are calculated at the maximum and the maximum expense would be £35 016 again.

The estimated Profit Margin will start after One year of the product launch as it a new investment, where as if the Product is successful soon and has many consumers, they get back the initial in Six Months time. Advertisements for the Products will cost £3000 which can be compensated with the money the product earns through Advertisements about movies and music Album on the Official web page. As the Product gets families the advertisements revenue for the Product will also Increase. the estimate profit Margin on the sec on year will be 30% resulting in a net profit of £60,000.


An estimated Initial Investment of £16000 + £73 032 in six month interval respectively, a Total of £89032 will be needed for the Product. Which would include the Web development and Server management cost including a sum of £12000 and £4000 for the Miscellaneous expenses, this would cover all the expenses including the labor charges and transportation. Where £ 3000 from the whole Budget will be allocated for the Celebrity Advertisements and advertisements through other mediums. Free Advertisements of Facebook and twitter would not incur any charges where they are mutually beneficial. The projection is that at least 2% of the total social Networking circle start using the Product which will be around 311 650 consumers Using the Product.

In the First Three Months 25% from the product consumers, which will have 77912 consumers will buy at least One song at a minimum rate which would contribute the revenue at £ 8735. in the next Three months which Six months all together will have 50% of the consumer buying at least One song which would give another £ 8735, and the product will be earning through Advertisements of the web page which will contribute a minimum of £3000 in the first six months which will gradually increase. Thus the Initial investment needs are explained.

12. Barriers

Internal Barriers

The Internal Barriers which could arise is, Effective investments from the Investors with Confidence to Bring up a Good Quality Product and the Time for Testing the Product and trouble shooting may take much time as predicted to be. It could take Six to nine months for Marketing the Product through promotion and make the Product Familiar with the Consumers. This my be due to unforeseen Circumstances such as illness, job relocation, etc.

External Barriers

Eternal Barriers would arise by the Lack of Potential Investors, who can cope up with the Development of the product. Finding a Good Software development and server management team could also be a barrier. Technical barriers like the speed and effectiveness of the product in mobile phones and Tablets could arise. Advertisements should reach the consumers well before the product is launched. Effective Competitors, Duplication and piracy could also be a barrier.

13. Profit and Exit

The profit margin for this product is gradual initially with 30% after the First year, the main idea of the product is to take it gradually producing good quality and customer satisfaction. It takes nearly one year to get back the Huge Investment on whole and does not need much investment and running cost after the First year. The main aim of the product is get a Steady and gradual market with strong Consumers. Further development of the Product
will depend upon the income and expenses after the First three years. The Profit target will be £ 1 053 432 including the expenses and charges incurred after the First year, Where the company successfully makes Profit out of the Product.

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