Saregama Fundamental Analysis | Saregama Share Analysis

Saregama Fundamental Analysis:

A thread about different segments of its business model.

Revenue from segments like Music (IP + Carvaan), TV & Films (Yoddle Films & Tamil TV) & Publications are shown.
(1/9)
1. Music IP
Image shows collection of their retro music, their library has IP of 130k music.

All music streaming platforms from Amazon, Spotify, Apple, Ganna acquire license of its music and share advertisement/subscription fees depending on customer engagement. (2/9)
It also Licenses its music to Television Channels (for TV serials, reality shows) & OTT platforms (like Netflix & Prime) where they issue license at fixed fee.

25 youtube channels with 44m subscribers, ad revenue is shared with Saregama (3/n).
This segment is the cash cow and expected to 20-25% growth in future.
In FY21 due to no release of movies, they did not acquire new contents and margin shot up.
In future they want to have share of at least 20% of total new music. (4/n) 
Risk: New Content acquisition cost is amortized over 6 years and payback period is approximately 5 years.

As marketing cost is up front (hit P&L in the first year), profit margin may reduce for first few years. (5/n) 
2.Carvaan:
A device with preloaded songs suitable for older people

Generates 25% gross margin and influences other people to consume retro music in digital platform

Recurring revenue by providing podcast content (ad revenue shared with content owner) is being envisaged (6/n)
3. VideoSegment: Yoodlee Films
Creates Low budget content for 3rd party platforms and issues period-based licenses for fixed-fee.

Licensed 16 films (Netflix Hotstar & Zee) in 4yrs
Target to reach 100 films in next 3-5 years, TV series will also be released soon. (7/n) 
4. Video Segment: Tamil TV Serials
Provides around 9-10 hrs of content (3 serials) per week

IP owned by Saregama, so monetize it on Youtube and Facebook also

South TV Youtube channel: 577M views in Q4
Roja continues its leadership position on Sun TV (8/9) 
5.Publication Segment: Open Magazine

Launched in 2009 as a print-only weekly available in select Indian cities.
It has now also rolled out a digital version, giving it a global reach.
Negligible revenue and no plan for scaling up (9/n) 

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