If a user switches to paid subscription and majorly listens to a specific music label then it can reach that level.
Listen to Saregama concall where the management explains in better way. Also, refer to this tweet by @sahil_vi : https://twitter.com/sahil_vi/status/1484149104724914178
(Please don’t call me sir, I am just a student)
unlikely to possibly that any of paid subscriber listen same label songs only,
People wants to listen different forms of music, which wasn’t own by single label.
This is only a way to calculate.
Try to visualise the process. 
The idea is to demonstrate the per song economics. Even if you assume that people listen to only 1 song from tips in a month you will reach the same conclusion.
100 rupees paid in a month.
100 songs listened to.
Only 1 song from tips.
50 rupees content poool.
Tips gets 50 Paisa.
You get same number even if you assume all 100% of songs belong to tips or saregama.
Great summary of the concall. One observation I’d like to add from the concall was the first time presence of some small PMS/AMC analysts.
All the previous calls have mainly been dominated by individual investors or individuals with proprietary firms.
One of the analysts was asking about the basics of the business and trying to understand the unit economics per stream on platforms like YouTube, etc. This is great for us as well as we could soon start seeing research reports on this sector.
So overall this is a very welcome change and with such low free float / daily volumes, any small fund taking an entry here can send the market cap into a different orbit from here as well. Let’s hope the management keeps delivering as per the guidance.
Disc: Invested from 850 levels
Yes, Morgan Stanley had joined the concall for the first time.
This link takes us to Shemaroo concall
Find below the TIPS concall link
Thanks for correction… I was comparing both and mixed up…
Looks like continuation of deal:
Kumar Taurani, Chairman & Managing Director, Tips Industries Ltd., said, “It’s been a pleasure *continuing* our collaboration with ShareChat and Moj. They are an amazing team and really have established themselves in such a short time frame. With this partnership, both the companies will continue to grow side by side and open possibilities for creators and users to explore their creativity.”
These are fixed price contracts. Also the revenue is not very big but it does bring in additional revenue and establishes a benchmark for fixed price contracts.
These deals are miniscule as of now but they become big over time. Now there are many short video apps in India but there is no leader as of now and they are not minting any money, once one or two leaders emerge their revenue grow disproportionately and hence share of music labels. Tips has deal with facebook also but they are not earning anything now though getting billions of views. Once initial deal period of two years complete real monetization will start with facebook/instagram
Disc: Invested
As per the recent Tips q3 review article by Moneylife
“TIL’s YouTube views across its channels declined marginally to 15.1bn (billion) in Q3FY21-22 from 15.3bn in Q2FY21-22. This trend of flat-lining of YouTube views has been evident for TIL’s competitor Saregama India Ltd (SIL) too and it seems that future growth for TIL from this platform will be modest.”
Any views on this findings as the views decline is for both TIL and Saregama…
Are we going to get into a long consolidation phase for Saregama as for tips there is still a demerger trigger… Views?
As per my understanding and after going to both concalls; it seems that now people are spending less time on youtube due to opening of economy but after a sharp rally consolidation can’t be ruled out.
Q3-22 Concall Highlights
Demerger-
Experts said the price of rights for an individual song can range between ₹25 and ₹30 lakh and featuring them on a show can further lead to renewed interest and spike in listenership on streaming platforms or YouTube.
Good read for the trend in old songs
