Saregama India , India's oldest music label, is set to revolutionize its vast music library through artificial intelligence (AI), marking a significant shift in the company's content strategy. The music giant plans to invest ₹200 crore to convert 20,000 of its top songs into AI-generated videos, a move aimed at creating a new revenue stream and modernizing its extensive catalog.

AI-Powered Content Creation

Saregama's ambitious project involves leveraging AI technology to produce music videos for its classic songs at a fraction of traditional production costs. With a library boasting over 87,000 songs, the company sees immense potential in monetizing this content across digital platforms, particularly YouTube.

Expanding into AI-Generated Films

The company's AI initiatives extend beyond music videos. Saregama is also exploring the realm of AI-generated films, with plans to produce movies at remarkably low budgets of under ₹5 crore. The company anticipates releasing its first AI-generated film within the next 12 months, potentially disrupting traditional filmmaking processes.

Strong Financial Performance

Saregama's venture into AI comes on the heels of impressive financial results:

The company has demonstrated robust growth, with a 23% annual profit increase over the past five years.

Future Investments and Leadership

Looking ahead, Saregama has earmarked ₹1,000 crore for content investments during the FY25-27 period. This substantial allocation underscores the company's commitment to staying at the forefront of the evolving media landscape.

The AI initiative is being spearheaded by the next generation of leadership within the RPSG Group, Saregama's parent company, indicating a forward-thinking approach to content creation and distribution.

As Saregama embarks on this innovative journey, it aims to bridge the gap between its rich musical heritage and modern digital consumption patterns, potentially setting a new standard for content creation in the music industry.

Saregama India Limited, a leading entertainment company, has announced robust financial results and unveiled ambitious growth plans for the future. The company reported a significant 46% year-on-year increase in revenue, reaching ₹11,713.00 crore, while its adjusted EBITDA grew by 18% to ₹3,566.00 crore.

Strong Performance Across Segments

Saregama's business is diversified across four key segments:

1. Music licensing and artist management (52% of revenue)
2. Video content (24%)
3. Retail products (16%)
4. Live events (8%)

The company's music licensing and artist management segment continues to be the primary revenue driver, showcasing the strength of Saregama's vast music catalog, which includes over 175,000 songs across multiple languages and genres.

Impressive Content Portfolio

Saregama's content portfolio is extensive and diverse, comprising:

• 175,000+ songs
• 70+ films
• 55+ digital series
• 10,000+ hours of TV content

This rich content library positions the company well to capitalize on the growing demand for digital entertainment across various platforms.

Strategic Investment in Content Acquisition

In a bold move to further strengthen its market position, Saregama has announced plans to invest approximately ₹10,000.00 crore in new content acquisition over the next three years. This significant investment underscores the company's commitment to expanding its content library and maintaining its competitive edge in the rapidly evolving digital entertainment landscape.

Optimistic Growth Projections

Saregama's management has provided an optimistic outlook for the company's future performance:

• Revenue is projected to double over the next four years
• Profit before tax is expected to increase 2.2-2.5 times during the same period

The company anticipates strong growth across its various segments, with projected compound annual growth rates (CAGR) through FY30:

• Music: 20-23%
• Video: 15-20%
• Events: 25-30%

Financial Highlights

Solid Balance Sheet

Saregama maintains a strong financial position with a debt-free balance sheet. The company reported a return on equity (ROE) of 13%, demonstrating its ability to generate value for shareholders.

Upcoming Investor Conference

Saregama India Limited has scheduled an investors conference for September 8th. This event will provide an opportunity for the company to share more details about its performance, growth strategies, and future outlook with the investment community.

Conclusion

Saregama India Limited's impressive financial results, coupled with its ambitious investment plans and diverse content portfolio, position the company for continued growth in the dynamic entertainment industry. As the digital content consumption landscape evolves, Saregama's strategic focus on expanding its music and video offerings, along with its venture into live events, is likely to drive further success in the coming years.