Music Company Saregama Turns Around; To Focus On Digital Downloads

The Telegraph: Music company Saregama India Limited has turned around and registered a net profit of Rs 5.51 crore ($1.3 million) in 2004-05 against a loss of Rs 26.16 crore ($6.2 million) in the previous year. In the quarter ended March 31, the company has posted a net profit of Rs 1.22 crore ($0.29 million) against a loss of Rs 6.62 crore ($1.57 million) in the corresponding previous period.
Vice-chairman Sanjiv Goenka said Saregama has turned around because of a well-articulated strategy. On the one hand, the company has regained profitability of its core music business, while on the other, it has focused on growing business opportunities in publishing, home-video and digital downloads.
Saregama has acquired licences from overseas studios Paramount and MGM, in addition to existing ones from Warner and Universal. Home-video sales witnessed a jump of 64 per cent, making a commensurate contribution to profitability.
Licensing the company