Thread by @ValueInvestor27

Key points from Saregama Concall Q3 2022:

- Guiding for OIBICD of 32% -33% on annual basis, higher in current qtr as no movie has been released.
- 165 songs have been released in Q3
- Growth of 25% - 30% coming from 2 factors – industry growth of 11% & grabbing market share

https://twitter.com/ValueInvestor27/status/1470802232215957505

- Not going to pick up any content at any price, revenue growth will not come at the cost of PBT
- No plans to invest in the marketing & distribution of Carvaan, break even in carvaan

- No plans to make big budget movies, will be making only small budget regional movies and pre licensed basis web series
- Music streaming contracts are for 1 or 2 yrs and then renewed

- We are not seeing that much of push happening towards a paid streaming, global streaming total number of paid subscribers have crossed 500 million.

- I'm personally very hopeful give it another year or two the market dynamics are going to ensure that streaming platforms will move to the paid subscription because otherwise it's not a sustainable business only on advertising

- As of now we are working with top singers in non-film music and not nurturing the new singers
- Going forward we will start artist management business also whereby we can add young talent nurture them and then those talent works for a limited period of time exclusively with us

- On free streaming we get on an avg 10 paisa per stream, in paid model if you pay them ₹100 on average content pool become 50 bucks if you are a very heavy user of the app and listens 100 songs in a month that means every song stream is now worth 50 paisa

- Entire QIP fund is only for music business
- We target for 15-20% margins on web series along with that IP stays with us for long term monetisation
- Hired top data scientists who track every song released in India and do modelling. They were in Tata sky with Vikram Mehta.

- Our payback period is of 5 years, in new contents we are targeting for 4 years
- Currently whole streaming income is coming mostly from ad-based revenue, subscription-based revenue is not even minor significant