Indian music label Saregama is reportedly in discussions to acquire Pocket Aces, signaling its intent to expand its video ambitions. While talks have been ongoing for several weeks, a final deal has not yet been reached, according to sources familiar with the matter. It is worth noting that the potential acquisition would not include Pocket Aces’ video games streaming business, Loco.
Key Takeaway
Saregama’s potential acquisition of Pocket Aces represents its commitment to expanding its video catalog and competing in the digital content space. By partnering with Pocket Aces, Saregama aims to enhance its video production offerings and tap into the growing demand for short-form, relatable content among young Indian viewers.
Growing Video Catalog
Saregama’s interest in Pocket Aces aligns with the music label’s strategy to diversify its video catalog. Saregama, which has a rich history spanning 120 years, has been producing over 300 video songs per quarter. However, in recent years it has diversified its offerings beyond music. The company has ventured into categories such as jukebox Carvaan business and invested in low-budget South Indian movies and TV series for on-demand streaming platforms.
Rivalry with T-Series
Saregama’s pursuit of Pocket Aces comes as rival T-Series continues to dominate the digital video space. T-Series gained an early advantage by uploading video songs on YouTube, capitalizing on the growing number of Indians coming online over the past decade due to affordable Android smartphones and internet access. With nearly 250 million subscribers, T-Series now boasts the most subscribed YouTube channel, far surpassing Saregama’s 37 million following.
Pocket Aces’ Appeal
Pocket Aces, known for producing short-form video content targeted at young Indians, represents an attractive partner for Saregama’s video production efforts. The startup has witnessed significant popularity in recent years, resonating with viewers through its comedic shows that tackle real-world issues. Pocket Aces has also licensed content, such as the show “Little Things,” to platforms including Netflix, Jio, MX Player, Vistara, and Qatar Airways. With a weekly reach of 50 million viewers and 700 million monthly views, Pocket Aces has established itself as a major player in the Indian digital content space.
