Tips Music Limited, a leading Indian music company, has made a significant move to strengthen its presence in the regional music market by acquiring Studio Radha's complete music catalogue. This strategic acquisition adds over 4,000 traditional Gujarati and Kutchi songs to Tips Music's already extensive portfolio, further diversifying its offerings in the Indian music industry.

Acquisition Details

The newly acquired catalogue from Studio Radha includes a rich variety of content:

• Devotional music
• Folk music
• Cultural storytelling tracks

These songs, representing the cultural heritage of Gujarat and Kutch regions, will now be available across major streaming platforms and digital services under the Tips Music banner. This move not only preserves these cultural gems but also introduces them to a global audience through Tips Music's modern distribution infrastructure.

Strategic Expansion

Kumar Taurani, Managing Director of Tips Music Limited, commented on the acquisition, stating, "This acquisition, which has an authentic voice of our culture, is a strategic move to deepen our presence in India's vibrant regional music markets. Beyond preserving this incredible legacy, our goal is to leverage our modern distribution infrastructure and introduce these timeless songs to a new generation of listeners globally."

This acquisition aligns with Tips Music's business strategy of investing in high-quality, diverse content with timeless appeal. By expanding into the Gujarati and Kutchi music markets, the company aims to:

1. Strengthen its position in regional Indian music
2. Explore new digital streaming opportunities
3. Expand global publishing prospects

About Tips Music Limited

Founded in 1988, Tips Music Limited has established itself as one of India's leading publicly-listed music companies. With a catalogue of over 34,000 tracks spanning multiple languages and genres, the company has been a key player in the Indian music industry for decades.

Tips Music has been associated with legendary film soundtracks of the 1990s, including hits like "Khalnayak," "Soldier," "Coolie No.1," "Gupt," "Pardes," and "Taal." The company has continued its success story with contemporary hits and has expanded into regional cinema with blockbusters like "Ponniyin Selvan 1 & 2" and the popular "Saunkan Saunkne" series.

The label has been home to celebrated artists across generations, from legendary voices like Alka Yagnik, Kumar Sanu, and Udit Narayan to today's superstars including A.R. Rahman, Diljit Dosanjh, Badshah, and Arijit Singh.

With this latest acquisition, Tips Music Limited further cements its position as a diverse and forward-thinking player in the Indian music industry, bridging traditional cultural content with modern distribution methods to reach a global audience.

Tips Music , a prominent player in the Indian music industry, has reported a robust performance for the first quarter, demonstrating resilience in a challenging market environment.

Financial Highlights

• Revenue reached INR88.00 crores, marking a 19% year-over-year growth
• Operating margins stood at 64%
• Profit After Tax (PAT) increased by 5% to INR45.70 crores
• The Board declared a first interim dividend of INR4.00 per share

Content and Platform Performance

Tips Music continued to strengthen its position across various digital platforms:

• Released 92 songs in Q1, including 48 film songs and 42 non-film songs
• YouTube subscribers reached 125.8 million, with a compound aggregate growth rate of 20% over the last two years
• The song 'Main Nachdi' from the film 'Saunkan Saunkanay 2' crossed 75 million views and charted for 12 weeks on YouTube's top 100
• Catalogue performance on Meta platforms showed impressive results:
  • 'Hona Tha Pyar' and 'Dil Hai Tumhaara' garnered 500 million and 700 million views respectively
  • The classic Salman Khan song 'Chunnari Chunnari' achieved 2 billion views

Strategic Developments

• Content costs increased by 85% year-over-year due to new releases
• The company developed an in-house content management system called 'Pulse' to streamline content delivery to platforms like TikTok and other DSPs via DDEX feeds
• Warner Music continues to contribute significantly, accounting for 25-30% of revenue

Market Challenges and Outlook

Despite the strong performance, Tips Music acknowledged some challenges in the industry:

• The company revised its revenue growth guidance to 20-30% from the earlier 30% target
• Challenges cited include OTT platform shutdowns and policy changes affecting content monetization
• YouTube implemented policies to restrict unauthorized use of music content, which may impact short-term growth but is expected to benefit the industry in the long run

Kumar Taurani, Chairman and Managing Director, commented on the results: "Despite the challenges faced in the music industry, our catalogue and new releases continue to demonstrate resilience with our revenue recording double-digit growth."

Hari Nair, CEO, added insights on the digital landscape: "We are moving slowly and steadily into a paid ecosystem model. The strong growth in our revenue has been across digital and non-digital segments."

Looking ahead, Tips Music remains optimistic about achieving its growth targets, banking on the strength of its catalogue, particularly its 90s repertoire, and upcoming new releases. The company aims to maintain content costs between 25-28% of revenue and targets a minimum 20% PAT growth annually.

As the music industry continues to evolve, Tips Music's strategic focus on quality content acquisition, catalogue monetization, and adaptation to changing digital landscapes positions it well for sustained growth in the coming quarters.