Saregama India's recording industry revolutionizes how tips types music.

As humans, we constantly adapt to new trends and technologies, but one thing remains timeless: our love for music. Do you have a playlist full of classic hits like 'Hosh Waalo Ko Khabar Kya' or 'Rahna Hai Terre dil my' ' Still today? Well, good music never fades, regardless of the era we live, right? For decades, two large music labels – music and Saregama – have been weaving a claw converter that takes millions of millions. From timeless classics to contemporary chart topers, they have consolidated their place in the annals of Indian music history.

India's music and entertainment industry, a “sleeping giant” of global music markets, has changed deeply. By the first decade of this century, music lovers had to wear devices such as Walkman, Ipods or USB drives to listen to music on the go. Now they have put together in a single device: the smartphone. The abundance of applications made music available around the clock with a tap and a blow.

In the middle of the growth of the Indian music industry, giants such as tips music and Saregama have not only successfully adapted to these new formats, but also met the right chord with investors and their share prices rise.

Tips Music Stock has increased by more than 200% in the past 3 years. The turnover of the companies has compiled the annual growth rate (CAGR) in 5 years in 131% (tips of music) and 29.8% (Saregama). According to Prahanth Tapse, Vice President of Mehta Equities Private LTD, “the average annual profit growth rate of tips music and Saregama has increased to 35-40%and the growth of the average entertainment industry exceeds 20-23%”.

Vaibhav Muley, leading analyst of entertainment and media, institutional equities research, yes securities, states that the large music catalogs as key moat for the two music label companies with constant use of income have acted. In addition, the duration of Long Copyright (IPR) of 60 years has enabled them to take advantage of several monetization strategies over time, added Muley.

According to tapse, both Saregama and tips have advantages by “monetizing and generate their audio video libraries and generating income and profitability by licensing music on digital platforms such as YouTube, Gaana, Apple Music, Spotify and Jiosaavn. In addition, the rise of the Ott platforms has added advantages for you.

From March 2024 on YouTube, tips Music has more than 97 million subscribers about their channels with 194 billion views. In contrast, Saregama's subscriber base in the YouTube channels is 107 million, with the music IPs used 373 billion times in its ownership channels and user-generated content on YouTube.

“Understand business”

Tips Music and Saregama have built up their business model by mainly focusing on licensing, audio streaming and digital monetization. The former with a music library with over 30,000 songs also achieves considerable income from his existing catalog. Kumar Taurani, Chairman of Tips Industries, said during a call in an income that the repertoire contributed 85 percent to the company from 1988 to 2022.

In addition, Tips Music YouTube shorts sees as an opportunity because the platform has started to enable advertisements in short format videos of up to 180 seconds. “It can be a big business, like an additional direct stream that currently contributes up to 5%, but increases to 25% of the business.”

Tips Music receives a 55% share of YouTube, while the platform receives 33-35% and 10-12% for publication rights.

The company expects a significant increase in content to meta platforms, including Instagram and Facebook. Last year, tips Music worked with TikTok and granted users worldwide access to his content library. According to Taurani, when Tikkok enters the Indian market again, “Tikkok, Facebook, roles and YouTube shorts can generate a business with 100 crore for tips in the next 3 to 5 years”.

In addition, the company re -monetizes its music through new song starts and repetitions of old hits. Tips Music believes that his music is vertically, which includes licensing and artist management, will grow with 22-23% CAGR in the medium term. Remarkably, the tips of music licensing fee in financial year24 rose to 241.5 billion rupees compared to 186.7 billion rupees in financial year 23.

In contrast, Saregama reported that his publishing business, which grants rights for his songs in various videos, has continued to grown well. Licenses are issued for his music, including texts and melodies, for social media platforms, video sharing apps, television stations, new films, hotels and event managers. Saregama's turnover in the music licenses increased by 23%compared to the previous year, which is due to a strong new content and a constant growth of the catalog. The company's license revenue comprised 52% of songs from the 21st century, 68% from license and artist management, 16% from music trade and 14% from video films, television and digital content.

In contrast to tips Music, Saregama has experienced the most aggressive content publication in the past nine months, with a total value of approx. 235 rupees, which includes content costs and relevant marketing costs.

“In the next three years that extend over 2025-2027, this will be of crucial importance for the future of our company by aggressively investing in recent content,” said Vikram Mehra. Saregama also monetizes his artists by booking them for live events, weddings and brand contracts and receiving a share in the income. On the other hand, Taurani mentioned that tips music to assign 25 to 30% of his budget in the upcoming quarters for new content.

“The music industry is competitive, but is dominated by some important actors,” said Avinnash Gorakshakar, director of Research Profitmart Sec. According to him, the establishment of a new company will take years because it has to create a robust library with chart-top hits such as tips music and Saregama. Therefore, there is an immense scope of growth among established players, provided that they continue to curate and maintain the audience with great music. “