Good point. But music will be limited to that platform only assuming if he signs up with Gaana and Gaana does not monetize it by selling to its competitor like Saavn which if it does it will be like all platform will have all labels, which i guess cos. will avoid. In that case the artist’s music will be restricted to one platform, which i think he will not be very keen. Also since a Saregama can sell that music to multiple platforms it can monetize it better and hence maybe pay the artist better compared to say Gaana. My personal view is what we are seeing in movies is also impacted by restricted movie hall releases, once the economy opens up fully we might get better sense, anyway if you see blockbuster movies are being held up and its largely niche movie category which are getting released on OTT. But agree to your point, this is highly disruptive industry and anything is possible and hence risk needs to be priced in.
Buddy please listen to the latest concall of Saregama, MK Investments had asked the same question.
Management replied that it looks very tempting from outside to release songs individually but it will take a lot of time for them to build huge catalogue which brings you power to negotiate with music streaming apps.
They also shared example of Tony Kakkar latest song where the authors gave away the monetization rights.
Hope this clarifies. 
If i remember correctly, the question was more related to if an artist launches a song on its own, to which management replied that it will take considerable financial might and approx 60 songs to negotiate a good deal with platforms. @Meet_Kush query is somewhat different, more related to artist recording directly with platform, which is similar to a question asked in Tips call where the management mentioned that it requires some level of music understanding to analyse the potential of the song and it is not that straight forward, it is upto to us to believe it or not
What I understand is that this is similar to publishing a book on your own vs going through a publisher (or something like Gaana in the book space, not sure if there is something like that). You have better reach through publisher, but will have to take a cut on your earnings.
Until platforms like Gumroad, or Amazon/KDP get to that scale, where self-publishing starts to make more sense and becomes lucrative, there should not be any threat to publishers. Same can happen with the music labels.
This is just a hunch …
- Saregama is raising 750 Crores to fill in the gap that they have in their collection which is basically songs between 1990 to 2010.
- Saregama most likely will go for Hindi covers rather than regional to get the best bang for their bucks
- I Don’t think TSeries, Sony and Zee Music will part with their collections with Saregama
- This would lead us to the most likely candidate for take over which is TIPS
- Tips management is week i don’t think that they have a vision, they are demerging their film business with music sometime this quarter
- TIPS market cap as of today is 1400 Crores, Saregama with 750 crores of funding they can do 50% cash and 50% share swaps and buy out TIPS
Most of Mid cap and Small caps stocks have lost 8 to 20% in last few days, index is down by 5-8% BUT Saregama and TIPS stock is just down by by just 2% from ATH
Do I smell an opportunity 
DEMERGER is your rational to claim thay TIPS management is weak? Can you please elaborate. Will be a revelation if you have any sensible Evidence for that.
This is such an expensive assumption to make.
In this business content is your Moat. Why would TIPS do a deal on their Moat? And if they do, why would other labels not have enough incentives to do the same? What’s so specific about TIPS?
Not trying to fall apart your post but just very curious to understand what’s your thought process on Label business coming from.
I do not think any company will sell its crown jewel in the times when the future looks promising unless they want to completely get out of music business and focus only of films, which is a rare probability.
Where do you think Saregama will use the 750 crorer that they are raising ?? Again this is just a guess, looking at possibilities?
Isn’t it abvious that in music industry the labels are the moats , so in that case what is Saregama raising 750 crores , they have to buy some labels, if so which one ?
Compare the relative aggressiveness of Saregama vs TIPS in acquiring new labels, how many labels have tips acquired offlate ?? Do you know them , I don’t, cos I don’t see any …does Tips have a successor in line?
This post is abt Probabilities , if you have a different idea on where Saregama will use their 750 crores let us know
Honestly i do not know. But the management in reply to a concall question mentioned very clearly there is no business diversification and it will be on music. The way they have called out aggression in new content acquisition, if my memory serves me right, they intend to buy 25% of new content, that is the area which has high probability, both in hindi and regional languages and i belive this 750 Cr will be over a period of time and not a one time investment. Rest only time will tell.
Even Private Equity giant - KKR & Co. is acquiring a big portfolio of music for $1.1 billion.
Big PE money flowing in gives a positive future outlook to the industry.
Saregama so far has no presence in latest Telugu music. But now they started acquiring rights, recently acquired music rights of a Telugu biggie ( “Sarkar vari paata” featuring Mahesh babu) and also acquired rights of few mid and small budget Telugu films.
Just tracking the YouTube views. They’re already growing well in Bhojpuri and Gujrati Languages. Tamil and Telugu seems to be the next big playbfor them.
Disc: not sebi registered. Invested and transactions in last 30days.
RP-Sanjiv Goenka Group bags Lucknow IPL team for Rs 7090 crore. Hope fundraising and other activities are not in Saregama.
That is in RPSG Ventures. Different company…please don’t create unnecessary panic.
RPSG Ventures has the stated objective of incubating new businesses.
First, check the strength of balance sheet of that company. If normal discussion will create panic for any shareholders then one should not invest in the equity.
It will certainly create panic if Saregama took a stake in this, for Saregama shareholders have bought company for music and CEO Vikram Mehra’s vision and execution.
For RPSG Ventures where people have bought it for Sanjiv Goenka’s enterpreneurial vision perhaps it will not have a negative impact…
Thx for this clarification. This group has done diversification hence market has some perception. During saregama latest concall also, questions are for utilization of fund as well as assure not for other than Music. Precisely that is why the chairman has clarified that it is not from group companies except their venture.
This video sums up the difference between US and Indian Music Industry and how things might emerge in India. We are shaping …