Tips Music Limited (NSE: TIPSMUSIC) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Kumar Taurani — Executive Chairman
Hari Nair — Chief Executive Officer
Hari Nair — Chief Executive Officer
Girish Taurani — Executive Director & COO of Music
Girish Taurani — Executive Director
Sushant Dalmia — Chief Financial Officer
Analysts:
Unidentified Participant
Ayushi Gupta — Analyst
Harsh Shah — Analyst
Kavish Parekh — Analyst
Garvit Goyal — Analyst
Vaibhav Muley — Analyst
Jyoti Singh — Analyst
Swapnil Potdukhe — Analyst
Deepak Ajmera — Analyst
Karan Galaiya — Analyst
Dinesh Kulkarni — Analyst
Yashowardhan Agarwal — Analyst
Shreya Garg — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Tips Music Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing 10. 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ayushi Gupta from MUFG. In time. Thank you. And over to you, ma’. Am.
Ayushi Gupta — Analyst
Thank you. Good evening ladies and gentlemen. I welcome you to the Q1 and FY26 earning conference call for Pits Music Limited to discuss this quarter’s performance. We have from the management, Mr. Kumar Turani, Chairman and Managing Director, Mr. Dhrish Tarani, Executive Director, Mr. Hari Nair, Chief Executive Officer and Mr. Sushant Dalmia, Chief Financial Officer. Before we proceed with the call, I would like to mention that some of the statements made in today’s call may be forward looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company’s website.
Without further ado, I would like to hand over the call to the management for their opening remarks and then we will open the floor for Q and A. Thank you. And over to you, sir.
Kumar Taurani — Executive Chairman
Thank you, Ayushi. Good evening everyone and welcome to the Q1FY26 earning call, Optics Music Limited. Despite the challenges faced in the music industry, our catalog and new releases continue to demonstrate resilience. With our revenue recording double digit growth, the board has declared a first interim dividend of Rupees 4 per share for FY2026. With that, I now invite our CEO Mr. Hari Nair to share his thoughts. Over to you, Hari.
Hari Nair — Chief Executive Officer
Thank you sir. Good evening everyone. The strong growth in our revenue has been across digital and non digital segments. However, we observe a slower growth on the YouTube platform in Q1.
Probably due to the reduced ad spends and changing YouTube policies. The policies now restrict UGC content usage and monetization. This is good for us as music industry in the longer run as third party pirates use our music to monetize from the platform. On the meta platform that is Instagram and Facebook, we see a consistent growth for our content consumption. With respect to Spotify, if we compare the paid subscribers last year Q1FY25 and this year we see a healthy growth in premium paid subs. Same as the growth for YouTube paid subs also. Overall we are moving slowly and steadily into a paid ecosystem model.
On the operations side, we did little automation. Our teams have built an enhanced content management system called Pulse which now delivers our content to TikTok and other DSPs via our own DDEX feeds. I will now request Girish to share his insights on the content business across platforms. Thank you everyone.
Girish Taurani — Executive Director
Thank you, Hari. Good evening everyone. In Q1 we saw strong traction. We released 92 songs in FY25 including 48 print songs and 42 non print songs. The song Manakshti from The film Songkan Sonkhe 2 has crossed 75 million views and is charted for 12 weeks on YouTube Top 100.
The song from the films Malik and Sarbalaji have performed well and have crossed 102 million views and 51 million views respectively on YouTube. Additionally, we now have 125 million subscribers on YouTube. With a compound aggregate growth rate of 20% over the last two years. Our catalog performance on Meta is very heartening. The song Bonatha Pyar and Bilhay Tumara did 500 million and 700 million views respectively. The song Chunnari Chunnari, the classic Salman Khan song earned 2 billion views on the platform. Now I would like to hand over the call to Sushant who will take you through Compute’s financial performance.
Thanks.
Sushant Dalmia — Chief Financial Officer
Thanks, Girish. Welcome to Q1FY26 earnings call. I am pleased to share the financial highlights of this quarter. Our revenue for the quarter amounted to rupees 88 crores resulting in yoy growth of 19%. The content cost increased 85% on a yy basis as we had new releases which were extent of during the quarter. Factoring the above, the operating margins came in at 54% while PAT was at 45.10 crore resulting in a YY growth of 5%. With this I conclude my opening remarks and open the floor for the Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may Press Star and 2. Participants are requested to use handsets by asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Shah from Dalal and Broocha. Please go ahead.
Harsh Shah
Thanks for the opportunity. A few questions from my side. So firstly, how Q1 has kind of panned out, right? So do you still hold on to the 30% kind of revenue aspirations for FY26. So why I asked this question is because if the answer is yes, then for the remaining quarters the growth that the company needs to deliver would be at least 30%. Yeah, that was my first question.
Kumar Taurani
Yeah, harsh. Actually it seems because of so many changes in the industry, our entire these Reso OTD platforms, right, like Reso or Ghana or many other people have actually shut down their business or converted their services into a paid wall. We also feel some effect this year. But still I feel we will achieve happily we will achieve 20%. But still the focus I had said earlier now our new growth will be coming from new titles which support us. So we have a major releases this year. So maybe we still trying, we should achieve a 30% this year as well.
So let’s be hopeful. But 20%, I can see even now people can achieve 20%.
Harsh Shah
Got it. Secondly, on the contribution from Warners.
Kumar Taurani
As said earlier, also between 25 and 30% will be of owner money coming from Warners.
Harsh Shah
Okay, so because why I asked is because in Q4 you had mentioned that for the full year it was around 20 to 25 odd percent. So this time around it has gone up, right?
Kumar Taurani
Yes, it will go up this year.
Harsh Shah
Okay, so then. Okay, got it. And lastly on an industry level question, right? So you did mention in the annual report as well as in the press release, as well as in your opening commentary that there are challenges within the industry. So your mic question is, is it just because there are music OTT platforms which have kind of closed down or there could be some other reason. Maybe like the ad revenue for YouTube going down. Not in terms of say the number of streams which is going up, but the rate that is being charged on YouTube is kind of on a declining trend.
If you could give some color on it.
Kumar Taurani
No, no touchwood. YouTube is doing good for us. And because of our repertoire, 90s repertoire, it’s really doing well. And day by day it’s. I think it’s getting more popularity. Girish just said Chundi. Chundi has 2 billion views on the Instagram. There were old songs like Dalai Kumara huna ta piar, 500 million, 700 million. So you can see our catalog still has a lot of strength. And I definitely feel it will be the same impact will be for coming many, many years, at least 20, 25 years. So I think our repertoire is a new retro.
We will do well and we will see growth also. And I’m again mentioning we are still focusing to achieve 30% even this year.
Harsh Shah
Got it? No, so my question was more from an industry level perspective whether the.
Kumar Taurani
Yeah, industry, industry. I can’t comment much but everybody has a challenges and the way I am seeing with the other players actually everybody is facing difficulty but because I think the 65 as mentioned earlier also 60 by 70% of 90s repertoire belongs to us from 1989 till 2020 20. So I think our songs are really doing well so we have edge with the other companies. I feel this is my opinion. I don’t know other what they are doing, what their strategies are, what is their numbers. Maybe I hope they will also do good actually entire industry should do good.
So it’s a good sign for everyone. But I think if we talk only about tips for touchwood we are safe and we are very performing well.
Harsh Shah
Got it. Yeah. That’s it from my thank you.
Kumar Taurani
Thank you.
operator
Thank thank you sir. The next question is on the line of Kavish Parikh from BNK Securities. Please go ahead.
Kavish Parekh
Hi team, thanks for the opportunity. My first question is on the revenue growth side. So I think when we last spoke which was around after the results for the fourth quarter, our aspiration for revenue growth was 30% and today while you’ve mentioned that you still aspire and stand by the same number, minimum guidance has or rather minimum growth that we will aim to achieve will be around 20 odd percent. What is it you think that is needed for you to bridge this gap between 20% and 30%? And just wanted to follow up on the comments that you made on Yuziv in your opening remarks with respect to some policy changes.
Could you explain that a bit more.
Kumar Taurani
Policy change as you’re saying? Yeah. So on YouTube, right there are certain policies that they have implemented where they are trying to reduce the music uploaded by the pirates. So what happens is many people who use our catalog, they make the song without having the same kind of composition and they upload it on the platform which then takes away our money. So it is trying to curve those activities. So that is a little change that we see over there. But again that should be not a long term one. It should be a short term impact on it and we are seeing slightly growth again rebounding in the month of July.
So hopefully it should grow. Does that answer your question on the policy side?
Kavish Parekh
On the policy side yes. But on the overall revenue growth aspirations for FY26 maybe some comment around what is needed to bridge this gap between 20% and 30%.
Kumar Taurani
We really see growth in our rapidon. As mentioned earlier also our catalog is really doing well and the numbers they are showing and also Now I think Instagram, whatever is happening on Instagram is helping us on YouTube and Spotify. So I think overall numbers will be, can be. And plus whatever acquisition we have done and our plan is for new releases this year so we can achieve that from 20 to 30%.
Kavish Parekh
All right. Plus the 19% that we reported this time, I think part of that was also impacted by the base quarter which had one off revenue from Wink. I think rupees five odd crores in the quarter.
Kumar Taurani
Yeah, yeah, yeah, yeah. Last year.
Kavish Parekh
Yeah, last year. Yeah. And 12 crores, I think 5 crores in the first quarter. 7cr in the second quarter.
Kumar Taurani
Yes, right, got it.
Kavish Parekh
And for the full year, what is the number that we’re thinking in terms of content cost as a percent of revenue? Somewhere around 26 to 28%.
Kumar Taurani
Yeah. 25 to 28%. Yes, that is the number. Yeah.
Kavish Parekh
All right. Thank you so much.
Kumar Taurani
Thank you. Thank you.
operator
Thank you. Sir, the next question is from the line of Vinay from ige. Please go ahead.
Unidentified Participant
Yeah. Hi. Thank you for the opportunity. Am I audible?
Kumar Taurani
Yeah.
Unidentified Participant
So as the last participant asked for the percentage of expense to be expensed into content acquisition, so over the medium term how it is expected to behave?
Kumar Taurani
Expense on content?
Unidentified Participant
Yeah.
Kumar Taurani
Our target is to spend around 20 to 28%. And if we feel there is a, there’s opportunity we can have a maybe increase our investment by 2, 3, 4%. We do that. If we have a quality context which will help us in future. We do that and we’ll explain you why our content price has gone up. But as far as this year, what I’m seeing, I think we will be in the range of 25, 26%.
Unidentified Participant
Got it. And what is the policy, accounting policy for us to write off our content expenses?
Kumar Taurani
Let’s say that’s the same. See if you see this water. Last year, same quarter it was around nine, nine and a half crores. This, this quarter we have written off 20 and a half crores. We have three big pills came in. So we have written off everything.
Unidentified Participant
Got it. Thank you. I’ll fall back in the queue for further questions.
Kumar Taurani
Thank you.
operator
Thank you. Sir. The next question is from the line of Garvit Goel from Invest Analytics Advisory llp. Please go ahead.
Garvit Goyal
Hi.
Kumar Taurani
Yeah.
operator
Yes sir.
Garvit Goyal
My question is around the challenges only. I want to understand more about them. Like last quarter we were very much confident about 30% guidance. Now we are looking a bit cautious about the guidance. So can you put some color on that? Like what are those challenges? What has happened suddenly like in last two, three months which the tailwinds in the sector had converted into the headwind. So can you put some color on that?
Kumar Taurani
We should try and do 30%. We are very keen to achieve that number but for safety and the way I see what is they are day by day becoming a tighter. That is Spotify they are not allowing people to listen to again they tell you to come on a paid wall. So that paid wall simultaneously is increasing. But we don’t know how much that growth will be. If there is an excellent growth, 30% will be very easy to achieve. So we are very, we are keeping our. We are applying cautious here and we are telling you upfront 20% what we can see.
But we are still hoping and trying fully if we should achieve 30%. That is the only challenge we have.
Garvit Goyal
And you also mentioned about some closing down of the OTT platform. So what is that?
Kumar Taurani
Yeah, there is a. There is a. Last year there was a. Many came in comrades. So then there are other apps. Wink was doing good business and then there’s Ghana Hangama. So many apps they have shut down. They have gone behind the paid wall. But even this year we are listening to Amazon is now coming. If they are launching full page service like Spotify. Earlier they used to go only that subscription what they charge. Bundling. Bundling. So I think many developments like that is happening and which is good for industry and give a new increment revenue for US and industry.
Garvit Goyal
We say 20% or 30% the guidance our content course is rising and we are having a target of 25 to 28% of revenue this year also. So do you think like that growth will be 20% in case we are doing the 20% top line or 30% India we are doing a 30% top. Line.
Kumar Taurani
Will explain this. Let’s say when It’s. Let’s say 20% growth and with a 25% content off. So we’ll see a pat. Healthy pat.
Garvit Goyal
No, I agree healthy pat growth. But the thing is like quarter also 19% buy on wise revenue growth is there but that is muted mainly because of this content growth. So that’s why I’m asking like is the guidance equally applicable for the bottom line as well? Yes.
Kumar Taurani
When you look it on an. Annual basis, on a quarterly basis, annualized basis, minimum 20% CAD growth will be there this year also, right? Yes, got it sir.
Garvit Goyal
Thank you very much sir. That’s it for my s. All the best for the question. Thank you.
Kumar Taurani
Thank you.
operator
Thank you sir. The next question is from the line Of Vaibhav from yes, securities. Please go ahead.
Vaibhav Muley
My first question was around Meta revenue recognition. So you mentioned a couple of songs doing very well on meta platform. So is the revenue recognized from the streaming that was generated on Meta and what is the incremental revenue that we are generating from addition of Meta specifically?
Kumar Taurani
We can’t tell you specifically how much we are doing with Meta or any other app. But in totality what we give you like 20% or 30% whatever we do. So please do keep that in mind because it’s a competitive world, we can’t reveal the numbers but we are doing well.
I can tell you this.
Vaibhav Muley
Understood sir, just on the YouTube views our YouTube views were sequentially flat and 9% down year on year. I understand there was some impact of on overall revenue because of shutdown and shift to premium model by different streaming platforms. But for YouTube why is there a 9% year on year?
Kumar Taurani
No, we are not decreasing, we are. Our growth is. We face our growth will not happen. But again even in YouTube we are seeing the growth. So we are positive, very positive on that. Our new releases and our catalog, our advertisement doing well on the YouTube.
Vaibhav Muley
Okay sir, got it. And just last question on the short format videos or so what is the status of monetization of that particular format on YouTube as well as other platforms?
Kumar Taurani
Other platforms we have, we are doing well. YouTube we have a fixed deal. But even on YouTube I think this fixed deal is one more year and after that we’ll see what happen.
Vaibhav Muley
Thank you sir. That’s it. Thank you.
operator
Thank you sir. The next question is from the line of the Jyoti Singh from Arihant Capital Markets limited Please go ahead.
Jyoti Singh
Thank you. Opportunity. So sir, just wanted to understand on the video side and like you mentioned a lot of copyright and people are changing the changing some routes and all that thing and because of that we are impacting. So just wanted to understand is tips floring on the AI driven music recommendation side and also how to track down the music which is made by which is of tips and using by other composer or musician.
Kumar Taurani
Yeah, so you know YouTube has a great fingerprinting system called Content ID that actually automatically scans whenever you upload any piece of content. It scans with this library and tells us all the respective copyright owner that there has been an upload done or it matches and it gives us a claim. So that part is taken care very well by YouTube but there are certain people who try to change the composition a little bit, try to tweak the lyrics a little bit and Then also upload the song in a different way. So they’re trying to kind of, you know, restrict that kind of monetization, which is kind of piracy.
So that is being restricted, nothing else. Did I answer your question?
Jyoti Singh
Okay. Yeah. On the subscription ad revenue, like global data on the basis of the presentation that shows a subscription, it’s revenue versus ads supported. So what’s our current mix and strategy to grow subscriptions?
Kumar Taurani
That is a question for the platform, madam. We are not probably in the right space to answer that. It’s a platform related question. So Spotify and YouTube can answer that.
Jyoti Singh
Okay. And so on the digital, I just spend said if you can explain how is the tips align its monetization strategy with this trend.
Kumar Taurani
So again, again, this is a platform driven one. So YouTube, you know, if you see every month there are fluctuations on the ad monies that are spent on the platform, it can be sometimes higher on YouTube, sometimes higher on Insta, but it just fluctuates. But overall the Indian market is growing on the ad spend side.
Jyoti Singh
Okay, thanks. Thank you.
Kumar Taurani
Thank you.
operator
Thank you ma’. Am. The next question is from the line of Swapnil Port Duke from GM Financial. Please go ahead.
Swapnil Potdukhe
Hi, thanks for the opportunity. I have just one question. This. With respect to your digital revenues, I think there has been a gift from 76, 75 which you used to different year. Now that number has come down to 72%. So any particular reason for that?
Kumar Taurani
We are doing well on other other site non digital so maybe that’s a field. But ultimately it will be between 70 to 75% and that other business will be in the range of 20 by 30% here and there. It will keep on happening.
Swapnil Potdukhe
But by any chance there has been any dip in the Warner revenue or any pressures on that side also?
Kumar Taurani
No, no, no, nothing, nothing.
Swapnil Potdukhe
And this cautious approach when it comes to your guidance of. You know, actually maybe, maybe the difference.
Kumar Taurani
Excuse me, maybe the difference because of Sony Music Publishing we have a big deal with them and they are really showing us very good revenue. So maybe because of that this has happened.
Swapnil Potdukhe
Got it, got it. And when it comes to a cautious approach, when it comes to FF26 guidance on the revenue side especially that is entirely linked to this disruption which is happening on the freemium streaming side especially on the OT or that also has some part of YouTube view not growing the same way that they were growing earlier.
Kumar Taurani
You can say 70% to the OTT because it has taken a different kind of a view on entire business and maybe 15, 20% on YouTube as well.
Swapnil Potdukhe
Do you think that YouTube growth views is kind of a structural challenge?
Kumar Taurani
Earlier we used to estimate YouTube will grow by 25, 30% but now we can go back at least 15, 18%.
Swapnil Potdukhe
So does that mean that your growth assumptions for you know, beyond FY26 also will factor in lower YouTube growth and slow?
Kumar Taurani
Yeah, no, I don’t think so because as I mentioned earlier our catalog is doing well. Plus we have a very quality new new songs coming coming in the in this year and as well as next year. So I think we will achieve the third targets.
Swapnil Potdukhe
Thank you.
operator
Thank you sir. The next question is from the line of Deepak Ajmera from IGE India. Please go ahead.
Deepak Ajmera
Yeah, hi, thanks for question. You mentioned YouTube contract is getting will be renewed next year. So what we should expect from that renewal it is like some sort of increase or we are moving to different methodology. How should we look at it.
Kumar Taurani
Next year? YouTube shorts that serverless shots. Serverless. That contest is getting over but it’s very early to say anything about that. We have not started talking to them. We will formalize in the next six, eight months. We will talk to them and we’ll come to some conclusion. But I feel it will be a raise. But our main target is to be this also should be a per view or per stream basis. We should get money like that. But they at present they are giving us lump sum kind of a deal. So let’s see what what industry other players are doing.
What is our requirement? We talk to them. We’ll negotiate harder. You know we tips negotiates very hard.
Deepak Ajmera
Got it. And one more point on the YouTube viewers means other OTT players are charging fees in their may impact it. But why the viewership is going down in YouTube. Any specific reason which you can highlight?
Kumar Taurani
Yeah, that’s. That’s mainly due to shorts. So it keeps on fluctuating. So YouTube short views keep going up and down. That’s. That’s very psychedelical.
Deepak Ajmera
Thank you. Thanks for.
Kumar Taurani
Thank you.
operator
Thank you sir. The next question is on the line of Karan from Keynote Capitals. Please go ahead.
Karan Galaiya
Hi, thank you for the opportunity. I have one question which is what proportion of your content consumption, you know is currently coming from the short format platforms like reels or shorts? And because they are not fully monetized like other audio OTT platforms, is that impacting revenue growth? Like is the shorts format growing faster than the traditional audio OTT format for tips?
Kumar Taurani
Yeah, it’s going very, very well. And we can’t actually tell you the number, the total number, but it’s really way ahead than normal other songs or other reviews.
Karan Galaiya
Okay, understood. Thank you.
Kumar Taurani
But this doesn’t impact our business. It’s not impacting the traditional consumption. That’s also going in parallel. Because somewhere the shorts content is also promoting our long form content. So that’s growing in parallel. So it’s not like it’s not eating away into anything. If anything helping and reach out to a better number overall.
Karan Galaiya
Okay. But since we are not getting paid on a purview basis, it’s not impacting our revenue growth despite it growing really fast.
Kumar Taurani
So yeah, shorts are done in a lump sum basis. So that remains unaffected regardless of how many views it does. But because the views on short content is growing, that’s helping our long form content. And from there we are then generating more revenue. So in some ways helping us. And once the industry wide with the once the model is set out to have this short views in one whatever creation or per consumption basis then that will also amplify further. So it’s just matter of that one switch over to happen.
Karan Galaiya
All right, Understood. Thank you.
operator
Thank you, sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Dinesh Kulkarni from fin site. Please go ahead. Yes, sir.
Dinesh Kulkarni
Okay. Thank you and thanks for the opportunity. Sir, my question is more on capital allocation. See if we like our content cost has almost doubled. You know that’s a good sign. But at the same time we are saying that we will give out a good portion in terms of dividends as well. So how do we see the capital allocation strategy or policy for this year and in the medium term?
Kumar Taurani
Yeah. Our CFO Mr. Sushant will tell you. Yes. Write off a content cost in the P L immediately at the time of release. And then whatever the path remains, we distribute it in form of dividend. So our allocation to a content is in that range. What we have guided between that 25 to 28%. And post that we pay the dividends last year’s revenue. And let’s say as a policy what we have formed is whatever is the last year’s pat we will distribute as dividend in this fiscal year. So last year we earned around 166 crores in fact.
So that will get distributed this year in form of dividends.
Dinesh Kulkarni
Okay, so this is not from the current quarter earnings. Right? It is predominantly from the last year earnings. Oh, okay. That sounds great sir, but. And just more on the how does the. I know may not be the right metric to ask, but say like if you’re adding almost 100 songs per quarter and again at the same time, our content cost is almost increasing. How do we see this trend per song? Is there any metric which you follow like okay, this is my target per song and okay, this much max. I can, we can, you know, offer per con.
Per cost, per content, per cost and is there any metric which you look at any KPI sort of a thing?
Kumar Taurani
So Dinesh, in terms of per song won’t be the right metric because slim songs and non flim songs cost vary on a high degree primarily. Let’s say we have a fixed budget. Let’s say for this year, let’s say we are targeting 25 to 28% of our revenue to be spent on new content. So we go by that budget.
Dinesh Kulkarni
And we just try to fit in X number of songs in that. Right? I mean we, I mean it’s more.
Kumar Taurani
Of the quality content we are targeting, not in terms of the number of sounds.
Dinesh Kulkarni
Okay, that sounds great. Okay, thank you very much sir. And all the best.
operator
Thank you sir. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Svenit Nambu from HSBC Asset Management. Please go ahead. Mr. Vineet, the line has been unmuted.
Unidentified Participant
Can you hear me?
operator
Yes. Your sound is very low, sir.
Unidentified Participant
Hello. So I wanted to ask the. The slowdown majorly is due to the increased nature of the payment wall on the content by all the platforms or. Or is it because of the takedown of imitating accounts which are trying to imitate your content?
Kumar Taurani
We can’t hear you.
Unidentified Participant
Sorry, I’ll fall in. Sorry.
Kumar Taurani
Yeah, hello. Can you please repeat your question? We can move to the next question in the meantime.
operator
Okay, sir, the next question is from the line of Yashodaran Agarwal from IIFL Capital Services. Amc. Please go ahead.
Yashowardhan Agarwal
Yeah, hi sir. Am I audible?
Kumar Taurani
Yeah.
operator
Yes sir.
Yashowardhan Agarwal
Yeah. Thank you sir. Thanks for this opportunity. Congratulation on good for number. So my question is that currently we are witnessing that many of the platforms are going behind the pay wall today. But since they are going behind the pay wall and if a content is gets in consumed on that platform, so the realization of that content would significantly be higher had it was earlier. So isn’t it true that the gain that we are looking over there is probably more than compensated than what the volume that we have lost over there?
Kumar Taurani
I think over a period of time it will happen you know what you’re saying? So right now the paper subscribers are there, but the volume is not so high that it will, you know, negate the conversion things that happen on the free side. So as it’s steady, I think what you’re saying will happen all the time.
Yashowardhan Agarwal
Got it, sir. At the same time, if I look at the consumer behavior and if I want to consume the content of TIPS usage and I’m unable to on the platform which I’ve gone behind the paywall, then I will provide you some other streaming or music OTT that I can consume it for the free program, the YouTube. So the consumption should happen over there, which should result in significant increase in volume of that particular streaming. So at the end of the day our content is getting consumed. So growth should come over there. So when that happens.
Kumar Taurani
Yeah, that is happening already. So if you see Spotify, they do give away free usage to the consumers. And if you search for any TIPS content on Spotify, Ghana, anywhere, you will get the content. It’s just that some platforms have opened up only paid ecosystem. Like Ghana moved to a completely paid ecosystem. You can do a trial for 30 days, but after that you have to pay. In Spotify they have free usage for a limited period of time. They try to do new obstructions. But eventually you are able to search the content either Spotify or YouTube, Ghana, Amazon, Apple, all platforms, you are able to search the content.
Yashowardhan Agarwal
In terms of volume that how much of a content is getting consumed in terms of streams of views? So views were disclosed on in the ppt. So in terms of streams, do we track that and how is the growth over there?
Kumar Taurani
We track that, but we will not be able to disclose the absolute numbers. But we are seeing a, you know, growth in our catalog consumption across all these audio streaming and video streaming platforms.
Yashowardhan Agarwal
The growth over there is meaningful, is that right?
Kumar Taurani
Yes, it is. It is growing and it is steadily growing. It is meaningful.
Yashowardhan Agarwal
And my last question is that earlier we had disclosed that payback period for the content that we acquire is five years. So does that still hold true due to competition? It has increased.
Kumar Taurani
Sorry, could you repeat that?
Yashowardhan Agarwal
Yes. My question is on the payback period of the content that we acquire. So is that five years or has that increased or decreased?
Kumar Taurani
We always say internally we want our payback should be within three years. But people like you, we say please keep it for four to five years. But there is a big, big catch here. We write off entire content in the same quarter. So we don’t have any burden on our head in case our we have a huge write off to make happen. We don’t do that. So we believe in this, this policy we are doing from beginning.
Yashowardhan Agarwal
Very true, sir. The reason I was asking that question is that the payback period would be dependent upon the quality of the content. That if the quality is good, more people are listening to it and so payback period would be less. So that is why I was asking the question that is there a change in there or not? But you have answered it. So that’s it.
Kumar Taurani
From my thing, it’s the same thing. We won’t say yes, but people like you, we are saying five years. Please keep that in mind.
Yashowardhan Agarwal
Thank you so much and good luck.
Kumar Taurani
I’d like to just add here somewhere. That’s why we are little careful about our expenses. Also because we want to invest in content which will give us this result. There’s no point in investing in content that we don’t see a future in. So we are working with the correct makers, trying to work with the correct talents and trying to involve ourselves creatively to get the best and extract the best out of our content acquisition and reward all shareholders, basically.
Yashowardhan Agarwal
Thank you.
operator
Thank you, sir. The next question is from the line of Shreya Garg from Yashvi Securities. Please go ahead.
Shreya Garg
Hello.
operator
Yes ma’.
Shreya Garg
Am, please. Yes. Hi. Thank you for taking my question. I wanted to. I wanted you to elaborate on this in house content management team that you had mentioned in your opening remarks. From the operational angle, how will it be different than. How will basically the content acquisition process going to be different than what was being done earlier? Also, can we expect a hike in the employee cost as a result of this additional team?
Kumar Taurani
Yeah. So content acquisition is completely different. This is content operations the way we used to work earlier. Now it is completely automated on a system called Pulse. It is now developed by our teams and we have a capability increased that we can deliver content using our own DDEX feeds to players like a TikTok or Spotify or YouTube in the future. So it’s like going direct instead of going via others.
Shreya Garg
All right. So like this theme is an addition to your current employee base. So will we see a addition in the employee cost?
Kumar Taurani
So this actually the team is in house only. There’s no additional addition in the employees. The existing teams are only helping to build this. We also have an analytics layer on top of this operations that helps us in our business management.
Shreya Garg
Okay, thank you and all the best.
Kumar Taurani
Thank you.
operator
Thank you, ma’. Am. That was the last question for today on behalf of Tips Music limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Kumar Taurani
Thank you. Thank you.
operator
Thank you, sir.