An official of the Saregama said that RP-Sanjiv Goenka group’s Saregama is planning to invest 750 crores across different states to increase the revenue up to 25-30 percent in the next few years. It also scouts new ways and programs for upcoming artists through uploading new music videos on its channel, with the arrangement of sharing revenues.
The official said, “This is not going to be used for our films or our Caravan business.” He added, “Other businesses are well-capitalized and they will be able to manage to run on their own” and “Our projection of 25-30 percent revenue growth that we are giving is a combination of both organic, new content purchases, and some inorganic purchases”.
Saregama has announced its strategy to partner with the singers and musicians to do covers. It will collaborate in the making of remakes of songs across different languages. The official added that Saregama has seen the partnerships in “three segments”.
“The first is Diamond plus for which revenue share is 20 percent, while Diamond revenue share will be 10 percent and for the gold category, which is only for audio, it is also 10 percent”, as per the statement of the official.
Through this, Saregama is planning to look for expansion in the music market. The music market is vast and has been growing since the advent of the internet. While the peer T-Series has expanded exponentially over the years due to the strategized business plan, Saregama, on the other hand, had lost its position.
It is clear that through the investment placed, categorically, the company envisions to regain its market share with growth in the music business.
The music brand has helped many upcoming artists under its umbrella. Eventually, this investment will bring out many promising artists from different parts of the country and keep up with the pace of growth of the Indian music industry.
