How Music Companies turn Songs into Endless Cashflows | ft. Tips Music

The music industry looks simple from the outside but behind every track lies a powerful business model that has quietly compounded wealth for decades. In this episode of Learn on the Go, I break down the fascinating case of Tips Music, one of India’s leading music labels with a catalogue of over 31,000 songs and 125 million YouTube subscribers.

From a modest ₹3 crore PAT in FY19, Tips now generates over ₹170 crore in annual profits. Saregama has seen a similar rise, proving that songs are not just art, but enduring assets. What makes this business unique is its “moat”, music rights that continue to generate cash flows long after a song is released. In fact, 85% of Tips’ current revenue comes from older content — tracks from the 90s and 2000s that are still streaming, getting remade, and printing money today. We’ll explore the three big drivers of this industry:
1. Digital Licensing – YouTube, Spotify, Apple Music, and others are now core revenue engines.
2. Content as a Moat – hit songs never die, and can be monetized again and again.
3. Financials & Growth – a debt-free, asset-light model with 65% EBITDA margins.

India’s music market is already the world’s second largest by streaming volume, crossing over a trillion plays in 2023. With subscription adoption rising and new short-form formats like YouTube Shorts opening up, the opportunity could be even bigger.

⚠️ Disclaimer: This video is for educational purposes only. It should not be treated as investment advice or a stock recommendation. Please do your own research or consult a financial advisor before making any investment decisions

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👉 Video Chapters:
00:00 Intro
01:57 Significant Shifts in the Music Industry
04:34 Tips Music Limited
05:25 Distribution: How Tips Music makes Revenue
11:07 Content: Tips Music's Big Moat
17:02 Financials
22:22 Valuations
26:28 Guidance & Notes from Latest Quarter (Q1FY26)
29:58 Risks and Upside
31:34 Shankar Nath's Viewpoint

#tipsmusic #moats #stockresearch #fundamentalanalysis #researchreport

Disclaimer: I am a SEBI-registered Individual Research Analyst (registration no.: INH000022093, validity: Jul 28, 2025 - Perpetual). I am not registered with PFRDA or IRDAI. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links