Music Broadcast Limited , the company behind Radio City, has secured a significant legal victory with the Division Bench of the Madras High Court delivering a favorable judgment on December 10, 2025. The court's decision has set aside multiple contempt orders and ruled that contempt jurisdiction was not maintainable in the ongoing copyright dispute.

Court Delivers Favorable Judgment

The Division Bench of the Madras High Court, through its common judgment dated December 10, 2025, allowed the Letters Patent Appeals filed by the company and set aside orders dated July 31, 2024, and August 26, 2025, in contempt petitions passed by the Single Judge of Madras High Court.

Key Rulings in Company's Favor

The court's judgment delivered several crucial rulings that benefit Music Broadcast Limited:

Relief from Financial Obligations: The directions issued by the Single Judge, including the requirement to deposit 50% of the alleged royalty dues and the requirement to furnish historical music play logs and compute alleged royalty amounts, have been set aside and no such obligations survive.

Contempt Jurisdiction Ruling: The court held that contempt jurisdiction was not maintainable in the present facts, particularly as the underlying order in the Civil Miscellaneous Appeals is presently under consideration before the Supreme Court and the alleged monetary liability is unquantified.

No Financial Impact: According to the company's disclosure, no financial impact arises from the impugned contempt orders, which have now been set aside.

Background of the Litigation

The litigation stems from a complex copyright dispute involving music licensing fees. The case involves multiple parties including Phonographic Performance Limited (PPL) and South Indian Music Companies Association (SIMCA), with the core issue being the determination of royalty rates for music broadcasting.

The Copyright Board had initially fixed licensing fees, which were subsequently challenged through various appeals. The Madras High Court had earlier passed a judgment in the Civil Miscellaneous Appeals, which is currently under consideration before the Supreme Court.

Court's Reasoning

The Division Bench emphasized that when the amount has not been quantified in the final judgment and the original order is under challenge before the Supreme Court, contempt jurisdiction cannot be invoked. The court noted that the proper remedy would be to file an application for issuance of certificate under Section 75 of the Copyright Act, 1957, so that the order could be treated as a decree of the Civil Court.

Regulatory Compliance

Music Broadcast Limited has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has stated that it will continue to provide updates on any material developments in this matter.

This favorable judgment provides significant relief to Music Broadcast Limited by removing the immediate financial obligations imposed through the contempt proceedings while the main case remains under consideration by the Supreme Court.

Music Broadcast Limited , the company behind Radio City, is projecting a recovery in its business, driven by growth in digital audio and diversification of its advertising revenue streams. The company's strategy focuses on leveraging digital audio expansion, non-FCT (Fixed Commercial Time) advertising, and brand integration opportunities to boost its performance.

Digital Audio Growth

Music Broadcast is betting big on the digital audio segment as a key driver for its recovery. The company sees significant potential in this area, aligning with the growing trend of digital audio consumption across various platforms.

Diversified Advertising Approach

The company is not solely relying on traditional radio advertising but is expanding its revenue sources through:

1. Non-FCT Advertising: This approach moves beyond conventional radio spots, potentially including sponsored content, branded programs, or other innovative advertising formats.

2. Brand Integration Opportunities: Music Broadcast is looking to create more seamless advertising experiences by integrating brands into its content, which could lead to more engaging and effective campaigns for advertisers.

Advertising Spending Normalization

Music Broadcast anticipates a recovery in advertising spending across various sectors. This expectation suggests that the company foresees an improvement in the overall economic climate, which typically correlates with increased advertising budgets.

Financial Performance

While the company is optimistic about its recovery, recent financial results indicate ongoing challenges:

The significant year-over-year decline in revenue and EBITDA underscores the importance of the company's recovery strategies.

Market Position

Despite the financial headwinds, Music Broadcast maintains a strong market presence:

• Market Share: 18% in Q2 FY26
• Client Base: 42% of total radio platform advertisers chose Radio City
• New Client Acquisition: 34% of new clients on the radio platform advertised with Radio City

These figures suggest that while the company faces revenue challenges, it continues to attract a significant portion of radio advertisers, which could be crucial for its anticipated recovery.

Music Broadcast's focus on digital audio growth, diversified advertising strategies, and its ability to maintain market share in challenging conditions may position the company to capitalize on the expected normalization of advertising spending. However, the success of these initiatives remains to be seen in the coming quarters as the company works towards financial recovery.