iWorld

Shemaroo's digital biz saw 31% growth in FY19

ShemarooMe hasn’t yet begun to yield revenue.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/06/03/Shemaroo_New_Logo.jpg?itok=bMAy5NHe

MUMBAI: The new tariff order implemented in the beginning of the year has not only affected the revenue of broadcasters but also of content creators and distributors. Content powerhouse Shemaroo Entertainment witnessed slower revenue growth for traditional media in the second half of FY 19 due to the impact of the new price regime which kicked in the middle of last quarter.

Shemaroo Entertainment CEO Hiren Gada said in an earnings call after Q4 result that the regulatory framework left industry-wide impact towards the end of FY19, especially post January. Gada also mentioned that multiple changes happened towards the end of the year leading to “a certain level of question or activity” particularly in the timeframe of February, March. The traditional business of the company is growing at roughly about eight to ten per cent while its aspiration is to grow at two per cent higher than the industry growth.

“Ultimately, the new tariff order is transitionary. Currently, we do not know the timeframe in which this will come back and we feel that it should be back in a couple of quarters overall because there has been a lot of change at the cable operator level, DTH level etc. BARC issued an advisory to all advertisers not to use ratings literally and there was a rating embargo for almost two months period. So, in that sense, we believe that it is a transient impact,” he commented.

On the other hand, digital media witnessed 31 per cent in the FY 19. Gada also shared the break-up of digital revenue under which YouTube stood at roughly about between 20-25 per cent of the total, syndication was around 35 per cent and telco business, which earlier was a bit more than 50 per cent, came down to below  40 per cent.

ShemarooMe, the newly launched over-the-top (OTT) platform, has not yielded any revenue yet as it was launched during the last quarter. Although it is too early right now, the company is optimistic that there will be some revenue in FY20. However, the company is focusing more on the distribution front to make it available on as many platforms available.

“Actually we are not really competing with virtually anyone because our focus on ShemarooMe, in terms of the segmentation that we have done, most of the segments are virtually uncontested or not really occupied by any of the existing players. Secondly, the strategy or the focus we have maintained is that for that content or that segment where we do not have the complete strength or 100 per cent strong market position, we are willing to work with all partners,” Gada spoke on the competition.

While asked if ShemarooMe was a strategic investment or experiment, he answered that it started as an experiment but as the business fared they realised it is going to be one of the ways to monetise content. However, he did not give any clarification on whether it would be the only digital play of the company.

While the company has seen a downward trend in EBITDA, Gada explained the reasons behind it. He shared that the company has been investing in people along with various other things leading to growing operating expenses. The company is putting efforts to maintain EBITDA in the range of 26 to 30 per cent.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/16/Ormax%20Media.jpg?itok=hhE2PJOK
Indian OTT audience: Young, urban and male-dominated

India has seen a healthy growth of OTT audience in the last few years. Yet, brands and OTT service providers know very little about the demographics of their fast-increasing audience.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/16/Disney%2B.jpg?itok=FD5AfeA_
Disney+ crosses 10 mn subs within days of launch

Disney’s much-anticipated OTT platform Disney+ has signed up 10 million subscribers within days of its launch on 12 November, from just a few international markets of Canada, USA, and the Netherlands, and in spite of the technical glitches consumers endured on the day of its launch.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/15/disney.jpg?itok=hfLmM1ai
Disney+ crosses 10 million subscribers within days of its launch

MUMBAI: Disney’s much-anticipated OTT platform Disney+ has signed up 10 million subscribers within days of its launch on 12 November, from just a few international markets of Canada, USA, and the Netherlands, and in spite of the technical glitches consumers endured on the day of its launch.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/15/Bumble.jpg?itok=kFQAc0me
Bumble's "Private Detector” goes live to protect users from unsolicited nude photos

The safety of people on social media and digital connection platforms is a global issue and top of mind in every household. Bullying and harassment online take many forms and the sending of unsolicited nude images is one of the most pervasive and harmful.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/14/zee5.jpg?itok=sG2gP2Io
ZEE5 Global's subscription revenue grows with their Festive Pack Offer

MUMBAI: In October, ZEE5 Global had rolled out a special festive offer in select global markets, offering a 50% discount on their Annual packs. The Diwali Special offer has seen a fantastic uptake across markets, with the annual pack subscriptions growing nearly three-fold over a one-month period....

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/14/amazon.jpg?itok=HYcdkRx9
Amazon Prime Video unveils Children's Day special line-up

MUMBAI: Amazon Prime Video promises to entertain viewers across all ages with their special Children’s Day line-up. Be it 5 or 50, there is no perfect age to watch a good old animated movie or show. This Children’s Day, Amazon Prime Video has curated a list of titles encompassing both Indian and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/13/tarun.jpg?itok=j8i2p_fz
ZEE5 india’s Tarun Katial to speak at 24th paley international council summit

MUMBAI: ZEE5 India CEO Tarun Katial will become the first Indian CEO from the OTT industry to speak at the 24th Paley International Council Summit. The Paley Center for Media’s 24th Paley International Council Summit: Agility in Media: Navigating the Global Market will be held in New York City on...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/13/voot.jpg?itok=YcbzFGgG
We want VOOT Kids to be the go-to destination for parents: Viacom18's Saugato Bhowmik

Viacom18, after establishing its main OTT service Voot, is now entering the digital space for kids with VOOT Kids. The subscription-based app targets the age group of two to eight year olds. VOOT Kids, which is priced at Rs 99 per month and Rs 799 per year, houses content in seven different...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/disney_0.jpg?itok=cfs2yTZl
Indians await eagerly as Disney+ launches in foreign markets

Mumbai: Walt Disney’s OTT service Disney+ launched in the US, Canada and Netherlands today, even as there is no clarity on when its unmatchable content library, offering 500 films and 7,500 episodes of television, will be made available to Indian viewers through its Hotstar platform.

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories