Tips Industries Ltd
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Tips Industries Ltd
Earnings Call Analysis
Q3-2024 Analysis
Tips Industries Ltd
Tips Industries Limited demonstrated a robust performance in Q3 FY '24 with a significant increase in revenue to INR 64.8 crores, marking a 27% rise from the same quarter the previous year. The company's profit after tax (PAT) also spiked by 72% to reach INR 34.7 crores.
Digital presence expanded remarkably, as evidenced by reaching 93 million YouTube subscribers across all channels. The company enjoyed a staggering 52% increase in YouTube views over the last year, up to 47 billion views this quarter, reflecting the growing digital engagement.
Content strategy paid off with the release of 165 new songs, split between 82 film songs and 83 non-film songs. Among them was 'Hai Huku' by King, contributing to the quarter's success and reinforcing the content-driven growth approach.
Despite the high content output, content costs were well-managed at INR 14.7 crores, a decrease from INR 18.7 crores year-over-year, indicating efficient content investment and contributing to a healthy PAT margin of 53.5%.
The nine-month financial highlights further displayed strong momentum, with revenue totaling INR 178.3 crores (up 32% year-over-year) and PAT soaring 74% to INR 101.4 crores, underscoring a continued upward trajectory in the company's financial health.
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Ladies and gentlemen, good day and welcome to Q3 and 9M FY '24 Earnings Conference Call of Tips Industries Limited. [Operator Instructions] Please note that, this conference is being recorded.I now hand the conference over to Mr. Nikunj Jain from Orient Capital. Thank you, and over to you, sir.
Thank you, Aditya. Good evening, ladies and gentlemen. I welcome you to the Q3 and Nine Months FY '24 Earnings Conference Call of Tips Industries Limited.To discuss this quarter's business performance, we have from the management, Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish Taurani, Executive Director; Mr. Hari Nair, Chief Executive Officer; and Mr. Sushant Dalmia, Chief Financial Officer.Before we proceed with this 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 risk 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 comments and then we can open the floor for Q&A.Thank you, and over to you.
Thank you, Nikunj. Good evening, everyone. And welcome to the Q3 FY '24 earnings call of Tips Industries. You probably already know this, the promoter has sold around 6% stake in Tips Industries to grow our film production business. We had disclosed this to you all more than a year ago also. The Board has declared an interim dividend of INR 3 per share as part of our ongoing effort to reward our shareholders.As you know, our team has been putting in serious effort and we are starting to see the results in our performance. As discussed, last quarter we are in the middle of reorienting our content investment to drive higher returns on content. By next year, the transition will be complete and we will be able to share more details about our strategy in a couple of quarters.With this, I will hand over the call to Hari Nair, our CEO, to take you through the company's performance and updates. Over to you, Hari.
Thank you, sir. Good evening, everybody. We are seeing an impressive growth of our music across all our digital platforms. The company has reported a healthy revenue of INR 64.8 crores for Q3 FY '24. All digital distribution partners are very happy with our EBITDA performance on their respective platforms. They talk about the organic surge of our catalog.Last month, we hired a senior talent to initiate projects on non-digital business. As Kumarji discussed, we are spending a lot of time thinking through our content acquisition strategy and investment. We will closely monitor the business and continue to update you.Now, I will request Girish to share insights on the content and digital business. Thank you, everyone.
Thank you, Hari. Good evening, everyone. Our YouTube subscribers collectively have reached 93 million across all our channels. This quarter, we recorded 47 billion YouTube views, reflecting a 52% growth compared to the previous quarter last year. The total number of new songs released this quarter is 165, of which 82 were film songs and 83 were non-film songs.Our key releases during the last quarter were Hai Huku by King, songs from the film Merry Christmas starring Katrina Kaif, Vijay Sethupathi, and songs from the film Hanuman, which is now picking up, more so after the release of the film.With Hai Huku, we also recreated one of our most popular dance tracks, Latka Dikha Diya, from the film Raja Hindustani, which we released before the end of the year to catch the party season.Now, I will be handing over the call to Sushant to take you through the financial performance in detail. Thank you, everybody.
Thank you, Girish. Welcome, everyone, to the Q3 FY '24 earnings call. Let me take you through the financial highlights of the quarter gone by. The company has reported a healthy quarter. Our revenue for the quarter was INR 64.8 crores as compared to INR 51 crores in Q3 FY '23, i.e., year-on-year growth of 27%.Operating EBITDA for the quarter stood at INR 43.4 crores versus INR 25.9 crores in Q3 FY '23, i.e., annual growth of 67%. Operating EBITDA margins were at 67% for this quarter. Our profit after tax for Q3 FY '24 stood at INR 34.7 crores versus INR 20.2 crores in Q3 FY '23. That is a growth of 72%. PAT margin for the quarter was 53.5%. Content cost for the quarter was INR 14.7 crores versus INR 18.7 crores in Q3 FY '23.Now, the highlights of 9 months FY '24 are as follows. Revenue for 9 months FY '24 was INR 178.3 crores versus INR 134.8 crores in Q3 FY '23, which was a growth of 32%. PAT for 9 months was INR 101.4 crores versus INR 58.2 crores previously, which was a growth of 74%.With this, I conclude my opening remarks and open the floor for Q&A discussion.
[Operator Instructions] The first question is from the line of CA Garvit Goyal from Nvest Analytics.
Hi, everyone. Am I audible?
Yes.
Congrats for a good set of numbers. My question is on basically the expected number of songs that we are going to release in Q4 this year?
Yes, this year also we will release 100 plus songs. This quarter, it will be 100 plus songs we release.
In Q4?
Yes.
I think in Q3 we have launched 165, right?
Yes, yes.
So, is it going to be down?
Yes, we are more focusing on the quality of the songs rather than the quantity. So, I think 100-125 you can say we release.
Okay. And how do you see these streaming apps going behind the paid walls? Do you expect any short-term headwinds to our revenues because of it?
Actually, if you see, Tips is already behind the subscription or first stream model. We don't have any MG or streaming model. So, I think and plus paid model, all are still Jio, Savaan, Wynk and Spotify, 3 main apps. They are not 100% going on a paid wall yet. So, it will take another 2-3 years. I don't think they will go. Even worldwide, if you see, nobody 100% directly converts like this. So, they will go slowly, slowly. They will keep both the models running and they will grow subscription model. Then only they will, little bit you can say, reduce free wall. And if subscription growth is very good for the industry.
One of our peers is facing headwinds because of this thing and our revenues are growing. So, that is why I was asking for the reason. Is there any kind of different negotiation happening between us and the peers? Sorry, us and the customers?
No, I didn't get that.
Actually, I was saying, our revenues are not getting impacted because of these streaming apps going behind the paid walls. But our peers are facing headwinds because of these things. So, I want to just understand the rationale for it.
No, I don't feel we will. I can't comment on what others are doing or what other peers are doing. But I can assure you that we are safe and we are not facing any challenge right now.
Can you tell me what percentage of revenue do we get from streaming app business?
I think digital business is around 75%-76%.
75% to 76% of our revenue is coming from our customers like Spotify, Wynk?
Spotify, YouTube, Savaan, all that.
Okay. And sir, in earlier calls, like you mentioned about the strategies that we are looking for to have the aspirational growth of 35% to 40% of revenue year-on-year going ahead. So, is there any color you want to put on those strategies?
Yes, 30%. I think -- I feel 30% will happen year-on-year growth. What we have committed, I am sticking now also to that. It's achievable and we will work hard to achieve that, top line 30% and bottom line 30%.
And for this year, do you want to revise the earnings guidance like we have performed phenomenally in the first 9 months?
On the contrary, I feel bottom line will be close to 40%, I feel.
Okay, sir. Okay. Okay. That's it from my side, sir. All the best for the future.
Our next question is from the line of Ravi Naredi -- no, Sagar Jethwani from Phillip Capital.
Yes, thanks for the opportunity. I am audible?
Yes, yes.
Yes. Okay, sir. I have 3 questions. So, in a typical Q3, that is a festive quarter, by what percentage the song consumption goes up as compared to the other normalized quarters? So, this is my first question. Should I go on with my questions or would you answer point by point?
You are asking song consumption?
Yes. So, in a typical festive quarter, that is Q3 of any year, by what percentage the song consumption goes up as compared to the other normalized quarters? So, for example, I'll just elaborate. So, for example, there are 100 views or 100 number of streamings in a typical quarter. So, in Q3, it would be 120 or 130 because of the festive season and all. So, that's what my question is.
Yes, okay. So, you have a second question.
Yes, second is that, so, we had signed a deal with Sony International. So, what's the progress on that? Has the revenue started to come? This is my second question. Third is, in Q4, are we expecting any kind of movie delay? We have a good pipeline of Ishq Vishk, Buckingham Murder, The Crew. So, I'm asking this from the point of that, is there any chance that music release would also get delayed? The content cost may get pushed over to Q1 in that case. So, yes, these are my 3 questions.
Yes, I'll reply your last question first. I think 2 films will be released, 2 films. The Crew will release and both films, music will be released in this quarter. Plus, we will, Sony International deal, it's not yet, we are receiving any income. We have received some moneys. We have kept that as advance. But I think from next quarter, we will see. I think they are reporting in 6 months, every 6 months. So, you will see, every half year, you will see some numbers going forward.And regarding number -- question #1, songs consumption. Hari, you take this question? Songs consumption compared to quarter 2 or quarter 3?
Yes, sure. So, for consumption, normally, it goes up by 20%-30%. But there can be platform-to-platform variance on that. So, does that answer your question?
Yes. Okay. So, I got that. So, on the third question, again, the sub-question to it is that, we can assume safely that the content cost would be around INR 45 crores to INR 50 crores in Q4 because our releases are on time. And hence, the film release would eat up some kind of content cost. So, INR 45 crores or INR 50 crores is a safe assumption?
Only for quarter 4, you are talking?
Q4, Q4.
No, no, not that much. As I said earlier, our investment of content cost is linked with top line. So, I feel it won't go. On the contrary, we are spending less money this year. Because of second quarter, we expected to release one film. But it was -- we have not acquired anything. We have not had opportunity. So, we will be spending less money this year in totality. Maybe 25%, between 25% and 27% ultimately. So, it will be much less than what we are expecting. It's not like that.
So, the content cost for full year, this FY '24 would be around INR 65 crores? Are you revising now?
I am not sure. Let's wait for another 2 months. Maybe we will acquire 1 more film. I am trying to acquire 1 film. I have a budget. I can acquire that. I am trying.
Okay, okay. Sure. Yes, all the best.
Our next question is from the line of Ravi Naredi from Naredi Investment. Please go ahead.
So, Taurani sir and your management, Mr. Nair and Dalmiaji, you really posted excellent results. Never market this thing for these 3 numbers. Sir, as you said in quarter 2 con call, almost 4 to 5 movies will be released in quarter 3 and quarter 4. Quarter 3 already went. So, then content cost will be INR 40 crores to INR 50 crores. Is it so? Just you have replied no. It is not like that. Okay? And sir, how much revenue we generated from Spotify in first 3 quarters in this year?
Actually, I can't tell you individually how much we have received money from Spotify. But as I mentioned earlier, we do digital businesses 75% of our total pie. So, I think I can't reveal more than that. Please, hope you understand.
No, no, no. Nothing, nothing. We do not want anything more. Sir, you have sold a few percentage of Tips Industries to fund a Tips Film. Can you sell some more share in future or it will be sufficient?
At present, it is sufficient. But maybe a little bit of something we will do as we need a big support of money for our film business. And film business, in films because we will also get a -- music company will also get Tip Industries will get a content from them as an arm's length business we do with them. So, that's needed, money is needed for film business. So, at present, I can't say anything about that. So, let's wait and see.
Okay. Sir, is Merry Christmas not performed up to mark? How it impact Tips Industries and Tips Film?
No, we have already Tips Films. We will talk in our Tips Films call. As far as Tips Industries is concerned, we have just acquired the music only. And our music is doing well. It is trending on YouTube, Spotify. And I feel in next 6 months, it will really do well. And we will be on a plus side in long term.
Okay, okay. And last, sir, we already grew 74% in 9 months in the bottom line. So, will you change our growth target for full financial year 2024 and financial year 2025?
2025? This year, you are talking about?
Both, both, for financial year 2024 and 2025.
Top line, as mentioned, 30% we will achieve. And bottom line, this year, we will achieve more than 30%. I feel we will touch around 40%. So, this year is that. And next year, we will work very hard to achieve that 30%, 30% what I always say. So, that's a projection you can say.
But, sir, you are telling 40% in financial year '24. We have already crossed 74% in 9 months. So, it will be very less figure.
No, no. But last quarter, if you put together all the figures, then I think around 40%, 42% will be there.
Okay. Okay. All the best.
Our next question is from the line of Pallavi Deshpande from Samiksha Capital.
Sir, how many films have we acquired this year?
You are not audible.
How many films would we have acquired this year?
Next year, we are targeting to acquire at least 10 to 15 films.
Okay. And this year, what do you think?
Ma'am, your audio is not clear -- ma'am your audio is not audible properly.
Just a minute. Is this better?
Yes, yes, yes.
Yes, so usually we acquire 3 to 4 films a year. Is that right?
3 to 4 films in Hindi. If you combine all the languages, we acquire 10, 15, -- around 12, 15 films. Hello?
Our next question is from the line of Dhananjai Bagrodia from ASK.
Congratulations on a good set of numbers. This question might be actually a little more broad-based. We just wanted to understand now with, let's say, how we've seen that sometimes there's a distribution channel. Eventually, the players start squeezing them to gain their own profitability. Is that something which we could see on the movie side? Like what's happened to INOX, PVR, where they eventually got loss of bargaining power? They've had that issue. Is that something which we could face also in the future? Like, obviously, the next few years, we have good numbers. But eventually, if the likes of Spotify or YouTube get bigger and bigger, is that a risk which we could see in the horizon?
On the contrary, I don't feel that to happen to us. On the contrary, they need us because our content is exclusive content. They cannot get my content from some other player. So they need all the companies to be with them. So that has never happened to this. Theater businesses, they are in a distribution business. So they are at risk. So in my case, then you can say that Spotify is actually INOX PVR. So we -- content companies are very, very safe.
Okay. But then is there a risk that some players might decide to get into content themselves? Let's say -- I'll tell you why. Let's say now, today Netflix also decided eventually to get into their own content versus vis-Ã -vis just taking content from producers of movies themselves. Is that something which could also?
No, that will affect film business. Not -- even if film business won't affect, I will tell you, if you ask me this question in my film call, I will tell you that. But music business has no issue, because music business depends on a repertoire or catalog.If your music is good then also 85% business comes from old music, catalog music. So from where they will get catalog? It's very impossible. They will shut down in 15 days.
Okay, okay. So sir then how would you see this, let's say, 5-year hands? What would be your vision for the company in terms of see as 5-year hands becomes, our catalog will get bigger and bigger and we should get more bargaining power. Would that means we could take more money from YouTube and Spotify? Does our bargaining power increase?
See, I feel music industry in India has actually started growing last 2, 3 years. And I feel today now our industry is around INR 2,800 crores odd. Plus maybe plus minus little bit INR 5,600 crores here and there. I usually feel in 3 to 5 years this industry has potential to grow INR 10,000 crores, INR 12,000 crores.
Okay. Okay. So then that that's it. And so then what is our plans? How much are we willing to do CapEx for the next 3 to 5 years? How are we looking? Because eventually, are we thinking of a system where we want to keep doing the same business or are we thinking of expanding our total addressable market by adding more lines of business? How are we thinking along those lines?
No, actually, Dhananjai we really love our business. So we are very focused on our business and we are not changing any new business, or we are not starting anything new. We are very focused. We are doing well. And we want to continue to grow with all of you and very, very focused.
Okay, okay. So then would it be fair to assume that our cash flows will keep improving, because our investment as a catalog increases doesn't require more and more investment going ahead?
Absolutely.
Okay. So then so what should we do? What would our plans be to do with the incremental cash flow? Because we'll have solid cash flow looking at the current numbers. So what would we look to do with that?
We will reward our shareholders. We do buybacks. We do -- we give a lot of dividends. We keep on giving with that. You see the presentation, you will -- all these things mentioned. I think 60% something plus we have given this year as also.
Okay. No, I -- we've really, really impressed that how you have really rewarded shareholders.
Yes.
So yes, thank you for that. Perfect, sir. Thank you.
[Operator Instructions] Our next question is from the line of Dinesh Kulkarni, an individual investor.
Hello, sir. Can you hear me?
Yes.
First of all, very congratulations, sir, on a good set of numbers. I have a question on the content cost here. Do we see these kinds of numbers going forward, like, would they remain around 30%? Because this is very much low on the lower end for the 9 months, but can we see around 30% as a revenue for the next 3, 4 years? Are expecting that?
Yes, I feel it's achievable and we are targeting to achieve that.
Okay. So because if I see the financials right in the other expenses, I believe this is part of other expenses, right? If I'm not mistaken, because that's the largest cost on…
Content, yes,
Yes, content cost.
Yes.
So my request is, if possible, and it's a suggestion, if you could just bifurcate that in the expenses, that would really help us because what else is driving the, say like if it is 14, 15 across this quarter, then what else is the remaining cost? You know, that question is still, yes.
If you see investor presentation, I think you will get that figures with that. Plus, I think in the year, the annual report, what we publish, we give all that.
Okay. That's great, really great. And this 1 last question from end. Do we expect this kind of margins really, EBITDA margins to stay around 70%? Or do we expect any probable incremental increase going forward, especially in the coming years?
Yes, I can assure you year-on-year, you can keep in mind 30% is our target and we achieve that. Bottom PAT.
Our next line from the question is CA Garvit Goyal from Nvest Analytics.
Are we looking for any inorganic opportunity to further improve on our music library?
Which opportunity?
Inorganic opportunities is to acquire an entity?
We are open to that, but I don't feel there is any substantial or a big label is already there. But if there is something, if we have an opportunity, we will do that. We will grab it.
Understood. And what are the new strategies on which Mr. Hari is currently working on in order to further improve on the growth trajectory?
Give us 1, 2 quarters. Mr. Hari is really still new, 3, 4 months. Give him some little more time.
Okay, sir.
Our next question is from the line of Samyak Shah from Sameeksha Capital.
Congratulations on good set of numbers.
Thank you.
Am I audible? Yes. So, 8 other songs of Merry Christmas, like except title track, have been released in this quarter, fourth quarter. So, shall we be writing off the same in this quarter?
Yes. We 100% written off this quarter.
Okay, so in fourth quarter, no?
Yes. No, third quarter.
But all other songs have been released this quarter, if I'm not wrong.
We follow that practice. Even 1 song or 1 promo will release, we write off 100%. So, we follow that practice. I think you all know that. So, we have already written off that cost.
Okay, okay. And are we planning to build any partnership with new OTT platforms?
Partnership with OTT platforms? For music, we have already partnership. We have Spotify. We are on Spotify, Apple, JioSaavn. We are already there.
Okay. And can you provide us with segmental bifurcation of revenue into like YouTube, OTTs, public performance, TV events, and publishing?
I can give you 2 figures. One is digital. One is non-digital. Digital is 75%-76%. And non-digital, which is live performances, TV sync rights, all those is 24%-25%.
Okay. That's helpful.
Next question is from the line of Surbhi from Bellwether Capital.
So, my first question is that sequentially, there's a decline in our YouTube views. While you've mentioned in the presentation that's because of YouTube Shorts, but if you can throw some light on, or if you have some insights on why there's a drop in the viewership, that would be very helpful?
Yes. Hari, can you respond to this?
I think, for the matter of fact, the YouTube views and the earning for views are steadily increasing for us. It's only aberration for the YouTube Shorts right now. And I think for the YouTube Shorts, we have a kind of fixed fee deal. So, revenue-wise, it's not impacting us. While view-wise, it can always go up and down. Does that answer your question?
Yes. To some extent, yes. And at what stage of…
Yes. I also want to add, see, please understand, for Shorts, that's a new thing for even YouTube. So, they are also experimenting many things with many things. Sometimes they try to push food-stuff, news-stuff, so there's many things. So they are always trying to do something here or there.But as Hari mentioned, we are safe on our revenues because it's a lump sum outright deal. And so that's that.
And yes, just a follow-up on that. At what stage of negotiation or discussion to move to a way to kind of model there, because that will definitely change the game for us, right?
Yes, Hari, go on.
Yes. So, on this actually it is very evolving for YouTube Shorts. They are very new. If you compare that with TikTok and Instagram, YouTube is fairly new. So I think it will take some time for them to also settle in as they are trying to see. But I think overall it will grow because Reels and YouTube Shorts are the only short video platforms that are actually growing and they're trying out very new things. So I think it's a positive thing for the music industry that way.
Got it. Got it. And second, just to clarification, Kumar sir, you mentioned about 40% PAT growth. In 9 months, we've achieved 32% PAT growth to 40% content growth. That's an incredible number. Last year [ Technical Difficulty ]
Actually, your audio is not -- audio is bad, I think. Hello?
Am I audible now?
Yes, now it's better, yes.
Yes. No, so you just mentioned that we are targeting a 40% PAT growth over last year. In 9 months only, we have reached around INR 100 crores, which is a 32% growth. And 40% comes to a number of INR 108 crores. Just wanted a clarification that 40% is a very number that you've [ Technical Difficulty ]
Maybe, it's depending upon content. Surbhi, if we are acquiring more films over content will be more and we will be -- because we write off 100% same quarter. So at present, I want to say 40%, but in case it's happening more, so I can't stop that. So let's wait and watch.
Approximately, what would be our best case assessment of cost? For 9 months, it is around INR 30 crores. And you've guided 30% number from [ Technical Difficulty ] INR 70 crores. And if you…
Ma'am, your audio is not clear. Sorry to interrupt, but your audio is not clear.
Sir, I'll get back in the queue questions, or I'll take it offline.
Our next question is from the line of Mythili Balakrishnan from Alchemy.
Congratulations on a very good set of numbers, sir.
Thank you.
I wanted to ask a couple of questions. One was, what is the competition like for new content? While we have sort of been a little lower than expected in terms of content cost. Is it positive of good quality content at the right price? Or is it something else that we need to keep in mind?
Yes, it's a -- yes, you're absolutely right. Content acquisition is very tough. And as mentioned in my earlier quarters, all the time I mentioned, if content deserves particular content, deserves INR 5 crores, people are offering INR 15 crores, INR 18 crores. So we are not following that path and we are not bidding anything.But we have a relationship in place. So we are exploring those kind of opportunities and we are getting. And we are not a heavy -- we don't want heavy content. We are not here to invest all the monies, whatever we are making in content. So we have our own content also, which we are recreating, remixing. We are doing that. Plus there is our own, you can say, film over another company, they are producing films and their target is, 4-5 films a year, going up to 10-12 films a year. So that content also, we will acquire at arm's length.So I think we will have our places fixed to how we will get our content from different, different places. So we don't want to bid that. And we will follow that 30% on top line of revenue. Content acquisition will be in that much range. So I won't -- I don't think I will have any problem with that. So we'll manage.
Got it. This year, it will probably be a little lower in terms of the content cost per se.
Yes, yes, yes, yes. This year, but next year, we will be more aggressive on acquiring content also and creating content also.
Got it. Also wanted to check with you, in 4Q, in terms of releases, we have Ishq Vishk and Crew, right? Buckingham would get pushed out to the next quarter?
Yes, yes.
And there was also a Marathi movie, right, which you were expecting?
Yes, yes. Sridevi Prasanna. Yes, it's releasing on 2 Feb.
So that will also happen in 4Q?
Yes, yes, yes.
Okay. So in -- and the -- it's only Buckingham Murder, which is getting pushed out into 1Q?
Correct.
Got it. Also wanted to check with you that any progress on the discussions which were there going on with Meta in terms of the reels and other stuff?
Fingers crossed. You will hear good news soon. Just wait for some more time.
Got it. And lastly, on the international revenue, have there been any more deals or anything else that needs to be sort of...?
As of now, nothing is there. But I said, ki, we always had discussion. Discussions keep happening. That's a regular practice of our business. So as said, fingers crossed. Just wait and watch kya hota hai.
Our next question is from the line of Pallavi Deshpande from Sameeksha Capital.
Yes, sir. Am I clear now?
Yes.
Yes. So I wanted to understand how many Hindi movies content have we acquired this year? I think our target is 4 a year?
Yes. For this year, I think we have released Merry Christmas. And -- this one Ishq Vishk will come and Crew will come.
Right. That's the release schedule, so I wanted to know the acquisition schedule they will release maybe after next year.
Next year, next year, we have already won Buckingham Murder as mentioned earlier lady on the call. And there is one movie Tips Films is already producing 2, 3 movies. 2 movies they are in discussion, so we will -- and also we are talking to 1 or 2 producers and we will acquire that soon, you will hear that news very soon right.
Right. And so how much in advance is the music right acquired like if a film is launched today, it will take 2 years -- one year to produce maybe, but when is the music right?
You can say 9 months -- 8 months to 10, 12 -- 10, 11 months, you can say.
8 to 10. And between in our music content cost of INR 31 crores, how much would be division, fair division between the music we create and music content and how much on the movie side, would it be 50-50?
No, no. You can say 40% of -- 35%-40% of content we will acquire from that Tips Films and 30%-35% content we will acquire from outside acquire, and 25% we will create of our own.
Right. So this percentage has been same this year also?
I feel so.
Right, right, sir. And lastly in terms of this between these channels you mentioned that about the Wynk and Saavn and this, how much -- like I understand they are all moving to subscription, but out of this it's Spotify leading in the race to move to paid subscription?
Yes. They are trying. Spotify is very aggressive, and trying that.
And would it be fair to say we are getting more from these rather than YouTube now, I don't know YouTube?
No, no. YouTube is 45% to 50% of our total business top line. So YouTube is still, you can say…
As we move towards the subscription model, can this happen that these other players will be a larger share as we go ahead, because they are more aggressive on the paid model?
Yes, yes. Spotify is the biggest player, second biggest player in the world. I feel they will be in India also that will happen. It's happening actually. It's happening already. They are number 2.
They're #2, right?
Yes.
Our next question is from the line of Akshay Pawar, an individual investor.
Congratulations for a good set of numbers. My question is in case of buyback, is there any chance of like promoter will increase their stake by not tendering stocks like we had lower promoter stakes by using buyback, we, increase it up to the 75%. So is that a chance again?
Actually nothing has decided yet. We'll take -- at appropriate time we'll take appropriate call.
In the interest of time that would be the last question. I would now like to hand the conference over to Mr. Nikunj Jain from Orient Capital for closing comments.
Management for taking the time out of this conference call today, and also thanks to all the participants. If you have any queries, please feel free to contact us. We are Orient Capital Investor Relations Advisors to Tips Industries Limited. Thank you so much.
On behalf of Tips Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.
Thank you. Thank you.