Open Question to fellow investors tracking Music Industry.
A business like Universal which controls more than 1/3rd of all published music globally is selling for less than 6x FY20 Sales.
Why are Indian businesses like Saregama / Tips selling for 11x, 20x their sales?
FY 20 Revenues ~ 8.87 B USD or 7.4B EUR
Catalogue of Music includes every international artist you can possibly name
Either Universal is grossly undervalued or Saregama/Tips are grossly overvalued.
Homework for all the interested participants here:— Intrinsic Compounding (@soicfinance) June 27, 2021
Q1.Why 20% and not 50%+ Margins for UMG
Q2. Differences in dynamics between Western&Indian cos?
Q3. Trends in West vs Trends in India in the industry.
Research and find the answers. My job is done \U0001f601\U0001f64f
If you see the ebitda of universal music its low 20% compared to our saregama 30% or tips 50%. So when you compare earnings saregama is 40x and tips is 30x and universal music is 30x. Also these type of companies are less( low or no capex with excellent and growinh cashflows)— Srikanth V (@mynameisnani75) June 27, 2021
The rights are different here in India.— Saket Reddy (@saketreddy) June 27, 2021
Indian labels own both publishing and master rights unlike the global peers.
Hence the 80% EBITDA Margins vs 20% EBITDA Margins for UMG.
Comparing them isn't useful IMO but should be only referred to study the Industry structure.
1. You own both the recording and publishing rights in India— Saket Mehrotra \U0001f60e\u2615\U0001f4b0 (@mehrotra_saket) June 27, 2021
2. Streaming business in India is 85% of the industry compared to 52% globally
3. You should look at FY21 number for Tips as that is pure-play music streaming
4. Headroom in India builds optional value for paid converts https://t.co/mOBj83uZgH
All throughout the world, largecaps sell at lower valuations than smallcaps. Larger room for growth. + India growth narrative. + More rights with labels in India. + The whole bollywood industry means that imo moat is wider in india for indian labels than at global stage for umg— Sahil Sharma (@sahil_vi) June 27, 2021
I think valuations based on sales is suitable only when the current profitability does not reflect the true profitability of the business. In the end valuations are based on profits— Ankush Agrawal (@Ankush__Agrawal) June 28, 2021
UMG and Tips have very different margins and thus comparison based on sales is not a great way 1/2
More from Tar ⚡
Recommending all of them 👇🏼
Billion Dollar Whale is a fascinating story about how one mastermind was able to rob billions of dollars from Malaysian Sovereign Fund and use that money to finance everything from parties with Paris Hilton to the movie Wolf of Wall Street.
Thrilling and Insightful 💰
Joys of Compounding by @Gautam__Baid teaches you various aspects of the magic that is compounding.
From finance to more importantly how compounding lessons in life play an important role.
This one has both lessons in life and investing packed into one.
Highly recommended 🌱
In The Plex give you an inside view on how one of the greatest companies in the world - Google, works.
Steven Levy is one of my favourite authors 🔍
If you're a fan of history and geopolitics then this one is for you.
The Rise and Fall of Nations by Ruchir Sharma has to be one of the best books written on global political landscape and the rules that govern them today. 🌇
Already broken it's support at 200 today, can fall more on this event. https://t.co/jwqUwbUOXE
Grab a cup of coffee, in this thread I will explain
1. What is a Dividend Discount Model?
2. What are its main components?
3. How to use it to value a business?
Lets dive right in.
Before I explain what a Dividend Discount Mode is, lets understand what is the main crux of valuations?
The entire reason behind valuing something is to determine, how much return your investment will generate within a specified period of time.
Return here stands for the cash flow generated by the asset.
Every asset by its nature, will generate returns.
For Fixed Deposits = Returns are Interest Payments
For Real Estate = Returns are Rent Payments
For Debt Securities = Returns are coupon payments
For Stocks = Returns are Dividends + Any Appreciation in Stock Price
To perform the exercise of valuation means to determine what these returns are worth today.
Cause Rs 100 today is worth more than Rs 100, 10 years later.
More from Music
Capítulo: “Conversations - Bach and the Piano with Terry
En 1976 Terry Snow entrevistó a Alfred Brendel sobre sus puntos de vista acerca de la obra de Bach para teclado, la cual hasta ese entonces Brendel había evitado ejecutar en sus conciertos.
Brendel cambió de opinión en esa época. Al haber sido alumno de Edwin Fischer, quien transmitía la música de Bach de una manera única y con poderosa autoridad, le tomó tiempo considerar que estaba listo para abordar a Bach en sus propios
En un principio, Brendel no se sentía muy convencido por las ejecuciones “históricas”. Sin embargo, para él la obra de Bach es menos dependiente de los instrumentos contemporáneos que la de Monteverdi, Domenico Scarlatti, Purcell, Rameau y Couperin.
Entre las ventajas de interpretar las obras para teclado de Bach en piano, Brendel considera el hecho de que este es más adecuado para las salas de concierto modernas. Además, para Brendel dichas obras están llenas de posibilidades
I say this out of need to the larger lesson to creatives, i'd hate to restrict this to Christians alone
I love Frank Edwards, his songs form a huge part of my morning worship routine. But for the past two weeks, I've been looking for a song that I used to play a lot in my first/second year of uni and couldn't find it until I searched a random part of the lyrics and went as far as..
The 6th page on Google search. Yes, that's how badly I wanted it.
Even when I found the name of the song, the song was available as a lyric video on YouTube and published by someone entirely different from who I wanted to give streaming dollars to, that's if it counts for much.
Hit another bump. I want to subscribe, and I realise there's over 11 Frank Edwards on YouTube. Each with huge and growing subscriber numbers, that was worrying.
It was not until this morning I found one with 250k subscribers and I thought... Ah this has to be him.
I search on Google for Frank Edwards and his entire discography isn't listed on Google and it in fact worried me.
Now I am moving to upset because this is someone I love deeply and hate to see how there's so much low hanging fruit that he isn't taking advantage of.
(Sung to the tune of Wellerman)
[A Musical Thread]
There once was a plan for an AFV
The name of the plan was the MIV
There’s more to the tail than you may know
Brew that bivvie boys, brew
Soon may the Boxerman come
To bring us armour and tea and gun
One day, when the fightin’ is done
We’ll take our wheels and go
They must deploy two kay from shore
Fit two to a Herc or maybe more
We envied all that Soviet Cav
And soon was born MRAV
I first met Kate at a rehearsal for Wayne Sleep's 1983 touring dance show DASH, for which I was composer. What struck me first about her (apart from the poetic lilt of her warm, Edinburgh accent) was the impeccable care she was taking playing piano for dance rehearsals /2
(believe me, & I mean no disrespect to lovely dancers & choreographers but playing piano for dance sessions isn't called REPETITEUR for nothing and many repetiteurs switch to auto-pilot at the keys. Kate never did. Her playing was always immaculate)/3
We hit it off immediately & had long, ranty discussions about how we wanted to change musical theatre, like young people do. We had specific aims to do with the way singing was taught & shaped for the stage. /4
We wanted the singing to be much more text & meaning-focused, for actors to have the confidence to sing as well as trained singers & for the sound to be more nuanced, more plural in style & less belty & samey (tbh not sure we won that battle..) /5
You May Also Like
Kolejny raz Danił Kwiat miał pracowitą noc w symulatorze i zebrane dane wskazały, że stary pakiet pracuje wydajniej. #F1pl
Stary pakiet bardzo dobrze obchodził się z oponami. Jeśli mamy gdzieś szukać plusów, to chyba właśnie tam. Wysoka temperatura może im dziś sprzyjać. #F1pl
This is my experience of what happened to me when I arrived in the country during COVID.
I think it will help people understand how criminally bad our government's response has been. (a thread).
On arrival, passengers were escorted from the plane by armed police.
We were allocated a government-mandated hotel, and told to wait in a holding area.
Once processed we were led to a coach. Members of the Australian army lined the route to make sure no one tried to escape.
Once at the hotel we were taken off the coach one by one
An Australian police officer escorted me to my room, telling me in no uncertain terms that if I left it in any unauthorised circumstances for the next two weeks, I would be spending up to two years in an Australian prison.
During the next two weeks I was fed three times a day in polystyrene and with plastic cutlery. Below are some examples of the food. It was fine, but there was no control or choice.
After about eight days I was tested for COVID.
This was mandatory, and the first time I’d seen another human since the quarantine started.
Even though I was negative, I was told I could leave only once my 14 days of isolation were over.
In 2015 Parliament held an inquiry looking into the state of Transgender equality. Trans people of all stripes outlined many different problems across many, many different areas.
As a result Parliament created a list of recommendations including legal recognition for non binary people, gender recognition act reform, allowing 16 year olds to change their legal gender and reform of NHS gender identity services.
The government under Theresa May ignored everything that was recommended except for Gender recognition act reform. This act came into law in 2003 and gave trans men and women (but not non-binary people) the ability to legally change their gender on their birth certificates.
The process at that time to change your birth certificate under the GRA was to make an application to a panel of cisgender people who would decide if you were sufficiently trans based on your payslips, photo ID and bank statements. You would not get the option to speak to them.
(Also this process cost £140 which is just a tax on being trans)
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):
The famous \u201cLucy\u201d, an early ancestor of modern humans (Australopithecus) that lived 3.2 million years ago, and was discovered in 1974 in Ethiopia, displayed in the national museum in Addis Ababa \U0001f1ea\U0001f1f9 pic.twitter.com/N3oWqk1SW2— Patrick Chovanec (@prchovanec) November 9, 2018
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹
Last week I launched Marketing Examples to Product Hunt.
✔️ 1,500+ upvotes
✔️ Product of the Week
✔️ Email list grew from 1,300 to 3,300
This is the step by step account of how I did it
Step 1 - Don't launch straight away
23rd May 2019 Marketing Examples v1.0 went live. The site had a few case studies, several bugs, and an email box which didn’t convert well.
The old version of me would have thrown it on Product Hunt straight away. But I decided to wait.
1) I didn’t want to waste my “turn” with the very first iteration of my site.
2) I didn’t want to launch in a vacuum. Product Hunt multiplies current momentum. Having a small following of “fans” on launch day goes a long way.
So I set myself a target.
✔️ 1000 email subscribers
✔️ 1000 twitter followers
And then I would launch. 70 days later I hit my target.
It was showtime.