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India’s oldest music label Saregama, which has been spending heavily in newer content, is planning to invest around ₹1,000 crore in music content in the next three years.
“₹1,000-crore music (content) investment that we will be making in the next three years, will be funded completely through internal accruals and the QIP (qualified institutional placement) money,” said Saregama India Managing Director Vikram Mehra during the company’s Q4FY24 results conference call.
Net up 24%
The RP Sanjiv Goenka Group company has reported a 23.59 per cent year-on-year jump in its consolidated net profit to ₹53.90 crore for the fourth quarter of the last financial year. The company’s revenue from operations during the period rose 29.16 per cent y-o-y at ₹53.90 crore.
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On Monday, Saregama’s scrip ended the day at ₹484.20 apiece on BSE, which was 1.32 per cent up from the previous close. The shares hit the 52-week high level during the day.
Mehra said the company’s annual investment in new music content across Indian languages witnessed around 80 per cent jump y-o-y during last fiscal. “So, we are investing in tomorrow. We are investing very heavily in newer content, and we are using technology, data analytics and predictive modeling,” he said.
Transitional phase
The company said it is currently in a “transitional phase”, where its new content expenses will go up steeply. And, over the period of 18-24 months, the expenses are expected to stabilise. After that the content investment will go up “linearly”.
For Saregama, the amount of money it made from paid subscription during FY24 grew over 40 per cent compared to FY23. “...the paid economy has already started showing some growth. I hold my guidance that in the next 18-24 months, subscription business is really going to take off which is going to add to the profitability,” the MD said.
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“Our only agenda is to monetise what we own today and what we procured yesterday in terms of intellectual properties (IPs). So, monetising today and yesterday’s IPs better and better, and the money we make from it create an IP for tomorrow. So, not only today’s profitability is secured, profitability of the company and relevance of the company is secured for the next 15-40 years,” Mehra said, adding that it also included “monetisation” of artistes who were creating IPs through brand endorsements and live events.
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