Music Broadcast , the company behind Radio City, has been directed by the Madras High Court to produce music logs and calculate royalty payments for SIMCA (South Indian Music Companies Association) members, as part of an ongoing legal dispute.

Court Order Details

The Madras High Court has issued an order requiring Music Broadcast to:

• Produce music logs for SIMCA members covering the period from August 2010 to December 2020
• Calculate royalty payments at needle-per-hour rates as per individual agreements with SIMCA members
• Submit the calculations to the court within four weeks

The next hearing for this case is scheduled for September 26, 2025.

Company's Response

Music Broadcast has stated that the court order does not require any immediate payment to either the petitioner or the court. However, the company has announced its intention to file an appeal against the order before the appropriate forum.

Implications and Next Steps

This development is part of an ongoing legal proceeding, specifically related to Contempt Petition No. 3238 of 2024. The court's directive for Music Broadcast to produce detailed music logs and royalty calculations suggests a significant step in the resolution of this dispute.

While the immediate financial impact on the company appears limited, as no immediate payment has been ordered, the outcome of this case could have implications for the company's royalty payment structure and financial obligations to SIMCA members.

Music Broadcast's decision to appeal the order indicates that the company is preparing to contest the court's directives. This legal battle may have broader implications for the music broadcasting industry in India, particularly concerning royalty calculations and payments to music rights holders.

Investors and stakeholders of Music Broadcast will likely be watching closely as this legal matter unfolds, given its potential impact on the company's operations and financials in the music broadcasting sector.

Music Broadcast Limited , the operator of Radio City, has released its financial results for the first quarter, showcasing resilience amidst industry-wide challenges.

Financial Performance

For the quarter ended June 30, Music Broadcast Limited reported:

The company's performance was impacted by an industry-wide volume decline of 2%, attributed to global economic uncertainties and trade tensions affecting advertising spend.

Market Leadership

Despite the challenging environment, Radio City maintained its leadership position:

• 41% market share of total radio sector clients
• 34% of new clients in the radio advertising space chose Radio City

Revenue Diversification

Music Broadcast Limited has made significant strides in diversifying its revenue streams:

• 35% of total income came from alternative revenue sources
• These include branded properties, digital ventures, and events
• The digital business has been growing at 20-25% annually over the past two years

Operational Highlights

• FCT (Free Commercial Time) split: 65%
• NFCT (Non-Free Commercial Time) split: 35%
• Inventory utilization: 68%

Strategic Initiatives

The company has undertaken several strategic measures to enhance performance:

1. Cost Restructuring: Management has initiated cost optimization measures to improve margins in upcoming quarters.
2. Digital Expansion: Launched Muzartdisco, a music platform, and a podcast platform as part of its diversification strategy.
3. Focus on Profitability: The company is prioritizing bottom-line growth over top-line expansion.

Future Outlook

Ashit Kukian, CEO of Music Broadcast Limited, expressed cautious optimism about the future:

"As signs of stabilization become visible and advertising sentiment gradually improves, we remain cautiously optimistic about delivering enhanced performances in the quarters ahead."

The company expects the radio business to remain core for the next 3-4 years, with a potential shift towards a 55% radio and 45% non-radio revenue mix in the foreseeable future.

Music Broadcast Limited aims to return to 20% margin levels over the next 3-5 years, focusing on profitable growth rather than just top-line expansion. The management also noted early signs of recovery, with increased interest from advertisers as the festive season approaches.

With a strong cash position and strategic focus on efficiency and innovation, Music Broadcast Limited is positioning itself to navigate the evolving media landscape and capitalize on emerging opportunities.