- Answer for SAREGAMA entering low margin business of Films
Source – Concall
One, we are in the larger business of
entertainment, and not just music.
Second, even to protect our music business, we need to be
there in these segments. Films is something that every competitor of mine is working on. And
you can go and check that almost every Indian player who is into music business is also into the
film business.
It gives us a very secure way to secure music of the films because we start getting into the
funding of it. Secondly, when we talk to these digital platforms, almost all of them are now
licensing both music and films from us together. So, it improves my negotiation position to a
very great extent.
Thirdly, as long as these are positive value accretive, I can’t grow at a rate beyond 23% to 25%
unless I’m ready to take a big hit on my margins. This is because to grow at a rate faster than
that, I’ll have to acquire music at a very, very high cost, which will have a dent on my bottom
line.
Further, we push for additional growth
from other areas, which have a synergy with music and still are positive margin businesses.
- Answer Regarding Low Margin Business of Live Events
Source Concall
What it does is that when an artist
comes to know that not only can he sing songs for Saregama, but he can also do Live Concerts
with Saregama, then the artist wants to work with the company that much more than he wants
to work with the competition.
The competition may be offering only songs and nothing else. That’s our main edge. So multiple
artists are now reaching out to us and saying, listen, we want to give you our songs, maybe at a
discount, but can you also do something on the live business with us.
| Subscribe To Our Free Newsletter |
