Saregama India's Audacious Leap: Turning Nostalgic Music into Mega Live Events for Massive Growth!

Saregama India Limited, a part of the RP-Sanjiv Goenka Group, is significantly increasing its focus on the live entertainment sector, aiming to monetize its vast music catalogue through concerts, musicals, and children's shows. This strategic move aims to counter slowing growth in music streaming services.

The company employs a three-pronged strategy: artist-led shows featuring popular artists like Diljit Dosanjh and Himesh Reshammiya, intellectual property (IP)-based musicals like 'Disco Dancer' that leverage classic Bollywood songs, and interactive kids' shows under the 'Say Cheese Grandpa' brand. Saregama is also planning a music festival named 'UN40' for Gen Z audiences.

Financially, while Saregama reported a 2% year-on-year decline in consolidated net profit to ₹43.8 crore and a 5% revenue drop to ₹230 crore for the quarter ended September, its live events vertical showed remarkable growth, surging to ₹22.2 crore from just ₹0.6 crore a year prior.

Vikram Mehra, Managing Director of Saregama India, stated that the company is confident in building this vertical and is targeting both Indian and international audiences familiar with Indian languages. Saregama produces its shows entirely in-house, taking direct financial responsibility.

Key Terms:

* **Intellectual Property (IP):** Refers to creations of the mind, such as music, inventions, literary and artistic works, designs, and symbols. For Saregama, this includes its extensive catalogue of music and rights to classic films. This allows them to create new revenue streams like musicals based on these IPs. * **Gen Z:** Generally refers to the demographic cohort succeeding Millennials, typically born between the mid-to-late 1990s and the early 2010s. They are digital natives known for their engagement with social media and live experiences. * **Millennials:** The generation born between the early 1980s and the mid-1990s, often characterized by their early adoption of digital technology and diverse entertainment preferences.

Impact:

This news is highly relevant for Saregama India's investors. The aggressive push into live events, coupled with significant revenue growth in this segment, signals a strong diversification strategy. Investors will be looking for continued strong performance from this vertical to offset potential slowdowns in other segments and to drive overall company growth. The company's ambition to become an IP-driven entity rather than just a music label could lead to a re-evaluation of its market position and future potential.

Rating: 8/10