Two Indian music giants Saregama India Limited and TIPS Industries have given 20x returns to the investors over the last 5 years. The investment value of 5000 INR would have become 1 lakh by the time.
The shift from depending on the traditional music apps to streaming on social media platforms and other high-traffic generating apps has made this growth possible. The index of the world music that had been declining until 2014, to the utmost happiness of the investors have shown only sharp upward move in the last 7 years.
According to a report by CNN, the revenue of the US music industry fell from 14b USD to 6b USD from 1999 to 2014. The major reasons shown in the news were the increasing piracy and the advent of platforms like YouTube.
However, since 2014, the music industry worldwide has shown only an upward spike on the chart. While the physical record has given an obsolete result to the disappointment of the music artists, producers and investors; on the other hand, live streaming on several platforms has given the boost it needs for a long time. A report by Federation Phonographic Industry (IFPI) clarifies that the growth is mainly led by streaming services.
Although music apps like apple music, Spotify, and Amazon has millions of subscribers, a large percentage of the audience does not have access to the paid subscription. Streaming has allowed them to carry the music everywhere; which has brought the index of the music industry back on track.
Even on many social media sites Facebook, Instagram, and TikTok People are making reels, stories, and snaps, through which the songs are getting promoted free of cost and reaching the ears of thousands of audiences.
Keeping its pace with the world music, the listed music giants Saregama and TIPS have given an unbelievable return to the investors. Saregama said that its IP (Intellectual property) was used more than 85 billion times in 2021 alone. It licenses the IP to music apps like Gaana, Spotify, Wynk, Amazon, and others. The licensing has contributed to 62 percentages of the company’s revenues. For TIPS Industries the licensing has contributed 100 percentages of the consolidated revenues.
