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There is something very brave about a startup that bets on live music performances—by artists from musical genres that are unheard of to the average Indian, at that.

Established toward the end of 2007, Blue Frog Media is an integrated music project set up by composer-musicians Ashutosh Phatak and Dhruv Ghanekar, film director Mahesh Mathai, film producer Srila Chatterjee and fund manager Simran Mulchandani.

Bankrolled by the five entrepreneurs and an undisclosed investor, the company works across four verticals­—a live music venue, a sound lab facility, a music production house, and an independent record label or artist management service.

Mulchandani, who was brought in as the CEO, tells us that the Blue Frog concept was ideated about four years ago. At that time, Ghanekar and Phatak ran a music production company while Chatterjee and Mathai had their own film production company.

Phatak’s intention back then was to set up a collective of sorts for composer-
musicians who were working in the advertising industry. The idea was to set up a corporate entity for com-poser-musicians that advertising agencies could deal with according to a set of predetermined standards. This, he felt, was imperative, considering the fragmented way in which the music industry was operating.

That concept soon morphed into a production studio­—one that attracted many independent artists, singers and composers, many of whom were forced to dock their creative side at home and instead work on projects that were monetarily more lucrative.

“We wanted to change that, and we did so by setting up our label,” says Mulchandani.

“We wanted to discover more independent musicians and give them a platform to shout out from. We wanted to promote them and create global acceptance for them.” The founders realized that the most straightforward way of finding new talent was from live performances. That, in turn, led to another stark realization: there just weren’t enough live music venues in the country. And so, Blue Frog’s live music venue was formed and went on to become the company’s most visible vertical.

“We believed that if we started our own venue, where we supported independent, original music, it would lead to a music scene that could be
built upon on a national level,” he adds.

Housed in a spacious, 6,000-square-foot, defunct warehouse in Central Mumbai, the venue is now nationally recognized as one that is constantly in search of new artists from both India and abroad. Among the eclectic lot that have performed on Blue Frog’s stage are artists like Sara Tavares (Portugal), Roy Paci (Italy), Susheela Raman and Shri (U.K.), the Ploctones (Netherlands), Bugge Wesseltoft and Frost (Norway), Bela Fleck and Edgar Meyer (U.S.A.) and Zakir Hussain (India).

Successful though the venue maybe, it is not the central focus of the company, Mulchandani tells us. It is a cog in the bigger wheel. After the team launched the venue late in 2007, the Blue Frog studios and label were officially set up in mid-2008. “The venue is a great place for us to scout for and test talent. An artist can come to perform at our venue, record in our studios and then eventually let us manage him,” he says.

The 360 degree approach has allowed Blue Frog to rack up an impressive catalog. The company currently has 10 artists and 25 albums in its portfolio and is in the process of signing up a number of management and booking agent contracts.

While the venue and production house have already turned profitable, the studio and label will have a longer gestation period, says Mulchandani. Still, that is impressive growth for a company that was set up less than two years ago. However, Mulchandani has always been more than aware of the pitfalls of having started up in an industry that is seeing an undeniable decline across the world. Adapting to the changing scenario has been the key.

“We always knew CD sales were plummeting,” says Mulchandani. “But we have also built a strategy that will work for today, not just the glory days of the industry. We make cheap but good videos, and spend wisely on album art. We leverage the internet well and use partners like MySpace to promote our musicians.”

Mulchandani adds that the company has also tinkered with the regular sales model. “CDs are just the calling cards,” he points out. “Digital downloads and concerts are the new distribution channel for our music. While shows are always paid for, our online store is already seeing 10,000 hits a day.”

According to Mulchandani, Blue Frog will soon further its reach by the Leap Frog concept. For this, it has tied up with strategic media partners, sponsors and venues for live performances across India. “We are also working on new sounds, games and themes for many clients,” he adds. “Also, we have set up private radio channels for clients like Shoppers Stop and Taj Hotels.” Blue Frog’s long-term bet, however, is on licensing and publishing.

“The ultimate aim is to create a phenomenal catalog of music. By managing the licensing and publishing rights for musicians, the company will open a new revenue stream for itself,” Mulchandani explains. He foresees a change in the way music dissemination works in India. As per copyright laws, musicians are entitled to a royalty from the end-users of their work. Although that was easier said than done until very recently, a gradual change in attitude is helping the shift.

“In the end, it is all about the label’s attitude toward this,” says Mulchandani. “You have to go about and make sure that artists are paid for their music. In the end, regardless of the sector, you have to be dogged about what works for you.”

MARKET WATCH :
• Bollywood songs make up 40 percent of the industry revenue
• Market has been spoiled by rampant piracy
• Emergence of new delivery platforms opens up scope for new companies
• Radio, internet and mobile phones to be drivers of growth.
• Income shifted to digital downloads, royalty income, ringtones, etc.
• DTH, IP-TV and large format retail stores are new channels
• Market has shrunk to Rs. 1,000 crore in 2008 from Rs. 1,350 crore in 2007
• In 2010, the industry is expected to grow to Rs. 1,300 crore

©Entrepreneur September 2009

Tags:
Ashutosh Phatak, Blue Frog, composer, Dhruv Ghanekar, director, film, fund manager, Mahesh Mathai, music, musicians, producer, Simran Mulchandani, smetv, Srila Chatterjee, startup