SET-listed RS Group plans to list its music business on the stock market next year, using the proceeds to create fresh, new works to drive business growth together with domestic and international partners while expanding the revenue base via digital monetisation through online channels.
According to Surachai Chetchotisak, the company's chief executive, the company earlier this year announced its plan to vigorously resume its music business and the company's management recently gave the music business approval to actively proceed with its business growth expansion plan by spinning off the music business as the company's first business unit to be listed on the Stock Exchange of Thailand (SET).
"With diverse opportunities to generate revenue in the music industry, especially from digital channels, RS Music will strive to raise funds through an initial public offering (IPO) in order to fully invest in the music business again. The funds will be used to produce new musical works, while engaging with various partners through different forms of collaboration, including M&As (mergers and acquisitions) and JVs (joint ventures). Recently, we announced a joint venture with Grammy, a partner that has always been developing Thailand's music industry together with us. Furthermore, we are finalising another significant deal with an international partner and expect to announce it by this year's second quarter."
To create an innovative music experience, RS Group is also bringing in competent team members to the company, said Mr Surachai, adding that all these factors contributed to the group's decision to spin off RS Music via a listing on the SET.
"As our firm continues to accelerate business growth, we strive to create new works and diverse music experiences that fulfil the demands of consumers and provide listeners from all over the world with convenient access to our music content through a wide range of online channels," he said.
At present, RS Music's revenue is generated via five main sources including digital monetisation or revenue from musical works by new artists as well as legendary RS icons distributed through online channels; copyright revenue or revenue from the collection of royalties and monetising intellectual property (IP) and other music licences under RS Music; and marketing projects and campaigns or revenue from related marketing campaigns and projects, such as the development of musical works with partners.
The two other sources of revenue come from show business, activities, events, festivals and concerts, as well as talent management and artist development.
"We are restructuring RS Music to strengthen our music business and generate income from various sources. We are confident RS Music will reach its target revenue of 700 million baht by year-end based on our effective business model, projects throughout the year and diverse strategies for generating income, including collaboration with local and international partners to drive business expansion," said Mr Surachai.
"The company wants to work via digital channels, develop new musical works with legendary and new RS artists within this year and via revenue base extension by collecting royalties from distribution on streaming platforms. We are also ready to start new partnerships which will keep evolving Thailand's soft power."
