to Shareholders
Dear Fellow Shareholders,
Music unites us, therefore music is priceless. It transcends borders
and boundaries as a force for good. That's why at Tips, our endeavours are about shaping
culture through the power of artistry. We deploy knowledge and innovation to help fans
connect with the artists and music they love and in ways they want.
FY2022 has been a watershed year in many ways. In this first year the
Music business established itself as a freestanding Company capable of charting out its
own destiny. Your Company achieved its highest ever Revenues of Rs. 135.6 crores and PAT
of Rs. 64.55 crores It is a matter of great satisfaction and personal pride that the
Company has been able to create more jobs within the Company as well as offer more
opportunities to artists, contributed more in taxes and has also been able to create value
for its shareholders.
We are actively creating and acquiring new IP We had 276 new releases
in FY2022. During the year, these new releases have clocked over 2.8bn views, including
UGC, on YouTube alone. Recreations of old songs are about 4 to 5% of new releases but
energise the portfolio and also provide strategic opportunities. No doubt, recreations
derive strength from the originals. But in essence these are completely new songs with
different lyrics, changed music and new videos picturised on different actors. An
important underappreciated difference is that these songs are sung by completely
different singers. This should provide a flavour of the levers which
the Company has to discover, test, promote and boost new artists.
At this juncture, music and technology are both contributing to growth
of our business. We believe new technological advancements in the areas of social media,
digital health/fitness and gaming offer exciting new market opportunities. We expect
social media to become a large revenue generator and expect exponential growth to begin in
the next two to three years. Other potential areas for future growth include music
products and experiences developed for metaverse and Web3 platforms. These range from
streaming within metaverse services, to digital merch, collectibles, and fan-oriented NFT
products.
Building on these advancements, we expect the existing addressable
streaming market to be expanded through the penetration of Smart Audio Devices -
"wearables" (smart watches, earbuds) - Smart TVs and Connected Cars. These
developments may increase engagement and consumption and support new listening behaviours,
creating a powerful driver for customer acquisition and retention.
We believe the future will bring more opportunities for us.