Conference all highlights:
Listen here: Researchbytes.com
Digitization increased due to covid by 4 to 5 years.
Q1 is weakest historically, however, numbers are good due to Overflow. Overflow means when there is actual money come from above minimum guarantee.
The content charge for Q1 is 6.8 cr.
Market share is going up due to retro music is getting popular worldwide.
Music
Royalty: HMV or Gramaphone done deal in 70s and 80s are with Royalty. From 90s upfront payment, no royalty. From 2000s royalty come back. Royalty payment in India is done to Film producers. Different countries have a different model for royalty. Cannot comment on the global issue of artist are paid less. In India, things are harmonized.
Total amount spends on content and marketing will be able to recover in 5 years on a mix of songs as the basket.
Radio case in court, in that there is the only upside. No downside.
The strategy to remix/reinterpretation is as simple/complicated as original content. There should be balance between remix/new music. As new music gives new compositions and ideas.
Ad driven business of music apps will be eventually transform to paid economy. In 20% assumption of music licensing business growth forecast, paid economy is not factored, if this happens it will be huge area of growth.
Retro opportunity size difficult to say. Music is growing rapidly due to apps. Difficult to control piracy in browser based model.
Sanjeev Lila Bhansali deal done based on data model. It is same for all songs. Under 30 age employees listen and give feedback. Models+ human intuitions are used.
Every platform has different models. Gaana/Spotify/wink etc. every time song plays, company get money. On you Tube, get 55% on advertising money. On Reality shows, it is fixed fees, re negotiated every one or two years. On music app, company get 10 paisa per song. If user is paid subscriber, some money from that. All these with minimum guaranteed.
For brands, it will be based on how many days, in India or outside etc.
Publication issue is looked from MD level and will come back to investors, shortly.
We are not in artist management; any artist can work everybody. We do not sign up artist.
IPRS is increasing revenues. Personally (Vikram) I am very bullish. Huge potential for higher revenue. For public event, if recorded music is played, need clearance from IPRS and PPL. For live event only on IPRS.
Total investment (by all industry players) across music, regional, film and non-film is around 550 to 600 cr.
80% is spend on content. 20% is marketing. From total paid amount, 40% charged in first year.
We are no 2 in market. Marketing is very important. Film producers wants to work with company who will promote music very well before movie release. Paying royalties regularly and timely. Entry barriers in music industry is huge due to no. of songs. If you get 5 songs/movie, new players will need 50 to 60 years to be considerable in industry.
Focus is on margin, not revenue.
Music Licensing is biggest contributor to revenues.
PAANI PAANI surprised company also, trended no.1 globally on YouTube and other apps.
Gujarati and Bhojpuri songs market share in recent times is 20% in terms of new releases.
Carvaan:
It is product where people want to touch and feel. Focus will on controlling cost in marketing and manpower. Product to Platform is ongoing work. Once market open from covid, will educate people about caravan as product.
Yooddle & TV
Film business will reach 100cr Revenue in next two to three years.
For movies licensed to OTT, no upside, fixed deal.
COLOR BOMB movie was most watched movie as per ORMAX for released week in digital content, released on Hotstar.
After licensing first license finish (between 3 to 11 years), movie will return back to company, second round not yet open. First movie will be soon available for second round. Money will be flowed to bottom line, as cost is written.
Web series will be launched soon.
TV shoots continue by changing story lines. Revenues were steady. Roza still retains no. 1 position from 15 months. All 3 programs are monetized on YouTube and Facebook.
Disclosure: Invested.
