#saregama amazing concall. Learnt a lot. My key takeaways:
1. Music licensing industry growing at 11-12%. Saregama growing at 21%. Guidance to grow at 22-25%.
In b/w lines: growth guidance revised up, purchase of 20-25% of all new music in india. Buisness is total cash cow.
1. Music licensing industry growing at 11-12%. Saregama growing at 21%. Guidance to grow at 22-25%.
In b/w lines: growth guidance revised up, purchase of 20-25% of all new music in india. Buisness is total cash cow.
2. Carvaan is not just a profitable product they sell at 25% GPM, they want to make it into a platform for audio streaming: podcasts, new songs, and thus generate recurring revenue through ads and subscription.
In b/w lines: reminds me of Google home. The focus should not be in the product But rather strategy of using the product to capture mindspace of the user. Also, enables B2C interactions with customers enabling data analytics. Only music content company in india which also has B2C
3. Movies biz to grow 15-20% for 3-4 years. Can make 100 films a year some years from now.
In b/w lines: film is also content IP. monetization will continue forever. When saregama makes a film for Netflix, saregama still owns it. Netflix will only show it for 3-7 years...
In b/w lines: film is also content IP. monetization will continue forever. When saregama makes a film for Netflix, saregama still owns it. Netflix will only show it for 3-7 years...
This second monetization would be very high margin directly flowing to bottomline. Lot of future Operating leverage in the future. In all 3 businesses. Even caravaan (specially 2.0) which some might consider a gruesome business is actually not.
@AnyBodyCanFly @soicfinance fyi since you are interested in this business 😁
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