Writing thread on summary of RPSG Virtual Investor Conference - Saregama India Ltd.
Music Streaming:
- Music industry is growing so rapidly, globally it is growing at 9.5% but in India we have seen around 12% growth.
Music Streaming:
- Music industry is growing so rapidly, globally it is growing at 9.5% but in India we have seen around 12% growth.
- Saregama music business has been growing at 20%, post fund raise guiding for 30% growth for next 5-6 years.
- Will invest aggressively in acquisition of film music in Hindi, Tamil & Telgu and non-film music in Hindi, Gujarati, Bhojpuri, Bengali, Tamil, Telgu & Malayalam
- Will invest aggressively in acquisition of film music in Hindi, Tamil & Telgu and non-film music in Hindi, Gujarati, Bhojpuri, Bengali, Tamil, Telgu & Malayalam
- Currently we are no. 2 in market leadership position in terms of revenue but with upcoming growth we hope to reach no. 1 position very soon.
- We are able to ensure that we get a minimum guarantee commitment from each of these music streaming players (Gaana, Wynk, etc.)
- We are able to ensure that we get a minimum guarantee commitment from each of these music streaming players (Gaana, Wynk, etc.)
- On YouTube if an ad is presented there YouTube keeps 45 percent of the advertising money well while as a content owner Saregama gets 55 percent of this.
Films and Series:
- Once we have a film idea in place or a series script in place we go and pitch it to digital platforms and get a pre-licensing done for this content so we start spending money on the content only if we have kind of a guarantee from some platform the only....
- Once we have a film idea in place or a series script in place we go and pitch it to digital platforms and get a pre-licensing done for this content so we start spending money on the content only if we have kind of a guarantee from some platform the only....
...place where we take some amount of risk on films and series is in regional content we are making.
- Entire segment of digital films, series and tv shows we expect to grow around 28 to 30% for the next five years and with 15 to 20 gross margins
- Entire segment of digital films, series and tv shows we expect to grow around 28 to 30% for the next five years and with 15 to 20 gross margins
Carvaan:
- Till the time covid impact is not fully gone away and retail network is not fully open we will not invest anything more on marketing or manpower on Carvaan
- We believe that we should be able to manage our break even for financial year 2022
- Till the time covid impact is not fully gone away and retail network is not fully open we will not invest anything more on marketing or manpower on Carvaan
- We believe that we should be able to manage our break even for financial year 2022
- If we believe that our plan to monetize our IP through Carvaan is not working out we are not going to be shy from taking tough decisions.
Excerpts from Q&A:
- We are open to the idea of doing acquisition of other small to mid sized music labels across all languages
- If podcasts start going up the value chain and we believe there may be a long term value to it, we will be open to the idea of investing in that space
- We are open to the idea of doing acquisition of other small to mid sized music labels across all languages
- If podcasts start going up the value chain and we believe there may be a long term value to it, we will be open to the idea of investing in that space
- The primary way of acquisition is film music which is the biggest source of listenership and revenue, when we are buying film music for Hindi what do we do we go to a producer like sanjay leela bansali and buy our rights from them. In this case we have no direct connection...
...with the singer composer or the lyricist all three of them do their deals with the film producer film producer does the deal with us in the case of film music Hindi film music the deal structure is that we people pay a minimum upfront money to the film producer suppose...
...that is x crore this is written off in our books over a period of six years our internal policy the payback period of five years once I have recovered the entire cost that is the hurdle rate then I get into a royalty sharing with the film producer
- In Tamil, Telugu, Malayalam or Bengali film music the standard practice out there is you pay money upfront and you commit to a marketing spend and that's it there is no royalty that needs to be paid post that.
- In all the non-film music whether it's Badshah or Arijit Singh or whatever only a one-time payment happens and then there is no royalty coming in after that
- In Telgu Saregama has started aggressively acquiring content; within 3 months we should become the no. 2 player
- In Telgu Saregama has started aggressively acquiring content; within 3 months we should become the no. 2 player
- In Gujarati, having 50% share of new content
- We want to pick up 30 to 35 % of all new content that will be coming out across all languages
- We are very seriously looking at a lot of these smaller music labels in various languages to acquire them.
- We want to pick up 30 to 35 % of all new content that will be coming out across all languages
- We are very seriously looking at a lot of these smaller music labels in various languages to acquire them.
- All 750 cr of QIP will be deployed only in music business not a single rupee will be deployed in Carvaan, Films, series & Serials business
- We are looking ways to monetize land parcel and cross holdings
- We are looking tax efficient ways to take out the magazine business.
- We are looking ways to monetize land parcel and cross holdings
- We are looking tax efficient ways to take out the magazine business.
- Biggest driver in future according to us which is not factored in as part of a 30 percent growth target is subscription.
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End. Kindly retweet if found helpful
@ishmohit1 @ValueEducator @mehrotra_saket @NeilBahal @Gautam__Baid @Ankush__Agrawal @sahil_vi @itsTarH @saketreddy
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