9.Financials
10.Future Growth
11.Content Acquisition
12. Conclusion
1. Tips Industries Overview
It was founded by Kumar S. Taurani and Ramesh S. Taurani in 1975.
In 1975, the Taurani brothers used to trade
Unique Business Model
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Topis covered:
1. Tips Industries Overview
2.Music Segment
3.Monetization
4. Tips Business Model
5.Acquisition Cost
6. Tips Film Business
7. Tips YouTube
9.Financials
10.Future Growth
11.Content Acquisition
12. Conclusion
1. Tips Industries Overview
It was founded by Kumar S. Taurani and Ramesh S. Taurani in 1975.
In 1975, the Taurani brothers used to trade
Driven by the ambition of both the brothers started their own record label.
2. Music Segment
Tips has an extensive catalog of film, non-film, devotional, pop & remixes
3. Monetization
Tips monetizes its songs just like other music labels i.e through distribution deals
Tips does not license its music to Gaana and Wynk due to some conflicts in contract renewals.
Produce Strategy- Tips has a A&R team which works only on researching and hiring upcoming artists. Tips has also recently signed five artists exclusive deals.
Tips engages in buying the music as well as producing music for themselves. It also indulges in one time and medium to
This results in a lower payback period of less than 2 years which is relatively lower than the listed competitors.
100% of the content cost is being paid of in the same year the content is acquired
and usually does not keep anything to write off in the future.
Tips is expensing its cost from the P&L A/c
Tips will be doubling the content acquisition in the future.
Tips has its own production house and has delivered movies like Race complete series.
The management has announced the demerger of the film business and a separate stock would be listed. Demerger is expected to be completed before December 21.
7. Tips YouTube
Tips has a YouTube channel with over 45M subscribers on the main channel and 22B views.
Top 10 songs of Tips comprises more than 17% of total channel views
8. Why should artists choose Tips over other labels?
Tips is watching the global players monetizing IPs through NFTs and collaborations with gaming platforms and company is exploring opportunities in it.
The company expects growth at 25% to 30% CAGR.
The company is focused on only acquisition of music and not diversified in any B2C product which eventually generated higher margins and ROCE for shareholders.
Management has historically done buybacks when the shares were trading at cheaper prices.
Pros : Tips has a small yet a strong songs portfolio with many hits so the company can capitalise on it to monetize in each possible manner.
Tips has a conservative approach while acquiring content.
100% of content cost is paid off in the first year itself.
