Saregama India Q1 2023 Concall Highlights

    • Music business segment grew 38% YOY (Caravan + Licencing)
    • 550 mn views for sarekaru vari pataa movie
    • Ittu si bat movie (Arjit singh, Juvian Nautial)
    • Nathunia song – 3 months – 150 mn youtube views
    • Planning for a big jump for content acquisition after QIP. There will be regional content acquisition as well.
    • Useful life of music initially was taken as 6 years while after the assessment, company changed to 10 years.
    • Marketing cost expensed immediately while content acquisition cost will be amortized over 10 years. Higher for the first 2 years and liner after that. 
    • 20% for year 1, 15% for year 2 and then 8% each year
    • Launched 2 new products in caravan segment –
  1.  Music Bar with Karaoke at the Higher end
  2. Carvaan Mobile at the Lower end
    • Mostly of Yoodlee movies will get released in Q3 and Q4
    • Started new business segment of Live Music Events with Diljit Dosanjh.Started with 6 shows in India : Gurgaon, Jallandhar
    • Canada : Vancouver, Calgary, Winnipeg, Toronto out of which 4 were house full. 
    • Experimenting with live content segment : 10% margin business, this segment created majorly to have association with singers and new content
    • Investing in new content aggressively.
    • Most of the cases overflow is coming which is higher than minimum guarantee.
    • Company sold 98k units in Q1 compared to 45k last year
    • Initially newer platforms works on fixed fees models but as volumes increase on platform those deals convert to variable contracts. 
    • There is a dip in advertising revenue for TV segment while there is no impact on streaming advertisements.
    • Not investing anything in caravan business segment
    • Planning to take 30-35% out of total content which will be around 800 cr so saregama would be taking 240 to 280 crs
    • Yoodlee movies have 15 to 20% margins. Reached 100 cr revenues planning fo 150 cr in next 1-2 years
    • Looking to acquire content for web series
    • Exploring NFTs it can be significant if user get the value out of it. Saregama will announce about soon
    • Q1 is generally slowly. Q1 never matched revenues of Q4. There is seasonality in the music business, it’s better to track the business YOY.
    • No senior employee of saregama takes the decision on music acquisition, it’s done by the team under the age of 30 years.
    • Register to model portfolio to watch detailed analysis of various businesses.
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