Hi Everyone!
This newsletter has been evolving ever since I started writing this almost 37 weeks back.
This week, I came across two interesting things related to the media space.
Video killed the radio star
For decades, alongside CNBC TV18, I have seen Aaj Tak being watched in my house. Curious with the popularity, I did some digging.
Turns out Aaj Tak is owned by the TV Today network and also owns digital assets – the most noteworthy being Lallantop News!
In fact, an extract from their Annual Report shows the market share data in the TV segment.
Compared to it’s peers, the TV Today group has negligible debt on it’s books and has also managed to ensure the digital capabilities are augmented better. (You can find out more about this in a deep dive we did this week on TV Today, here.)
Short form content, Short form attention
Ever since Tik Tok got banned and faced a lot of flak worldwide, content consumption habit has changed dramatically.
Whether it is YouTube, Instagram, Chingari, MX Takatak, Josh, Moj, Sharechat, Triller – chances are you would probably scrolling endlessly through Shorts, Reels and a slew of videos with duration ranging from upto 10 to 30 seconds.
Personally, my sense is this.
In a world filled with declining attention spans, consumption of content will shift to shorter time frames.
As a matter of fact, Spotify pays royalties to artists once a particular stream crosses 30 seconds.
Earlier a typical music album would probably contain 5-6 songs of 6-7 minutes on an average. Today the dynamic has changed to maybe 8-9 songs of average duration of 3-4 minutes.
What is the point? And how is this relevant?
Well, Facebook made a big announcement.
They have started ‘ads’ in their Reels two days back.
That’s right.
While scrolling through millions of creators dancing on a track, changing 30 sets of clothes or simply trying their new make-up you would be interrupted with ads from your favourite or maybe not so favourite brands.
You can read about this announcement here.
Stockroom Sunday – Episode 14
This week, before sending my regular broadcast, I was already greeted by multiple friends saying that the level of articulation has peaked back when they watched Episode 1 three months back.
TL;DR – This week we do a deep dive on Vodafone Idea, Dixon and take Tips Industries as a case study to understand the concept of Forward P/E.
Book of the Week
Check out the book of the week here.