Reputed media content house:
Shemaroo Entertainment Ltd is a well established and reputed media content house
in India. The current content library stands at around 3000 titles. The company
distributes and monetizes this content across different media platforms. Hence Shemaroo
as a brand has been an established name over the last 50 years in the field of entertainment,
which has been used in various media related activities including books and magazines
rental business, a video rental business, content aggregation, content distribution,
home video distribution and content creation.
Strong growth in Digital revenues:
The Company has agreements with various internet video destinations like YouTube,
Daily Motion, Yahoo India, Spuul etc and several services for the distribution of
content on the internet to internet connected televisions, internet connected set
top boxes and applications running on various devices. The company is an official
channel partner of Google Inc’s YouTube and has around 32 channels like Shemaroo
Movies, Shemaroo Ent and Filmi Gaane with both film and non-film content running
on it. It is one of the prime beneficiaries of emerging trend of digitization and
increasing internet penetration. The company has average monthly You Tube views
of 60+ mn or around 1.5 to 2 millions hits per day, which ensures strong growth
momentum in revenues. According to FICCI KPMG Media report 2014, digital advertising
industry has grown at a CAGR of 44% over FY10-13 to Rs 3000 crores and expected
to grow at a CAGR of 28% over FY13-18 to Rs 10200 crores.
Diversified Distribution Platforms:
The Company has comprehensive distribution capability backed by an in-house television
syndication team, a New Media marketing team for mobile value added services (“MVAS”),
internet, DTH and IPTV, and a nationwide home entertainment distribution network.
This provides direct insight to the consumer preferences and consumption patterns
across platforms helping than to cross-leverage these insights. This enhances company’s
ability to monetize content across various distribution platforms. Shemaroo has
tie-ups with telcos like Airtel , BSNL, Tata Teleservices, Reliance Communication,
MTNL and Tata Docomo to distribute content like caller ringback tones, ringtones,
wallpapers, imagery, videos, games, full songs, celebrity chats etc.
Strong International Presence:
Shemaroo Entertainment Ltd has extended its relationship with the Orchard an international
distributor of digital content for distributing and marketing Shemaroo’s music catalogue
on iTunes in the Middle East and North Africa (MENA) region. Earlier, it had also
entered into a strategic alliance with The Orchard, to distribute its music content
in Latin America, North America, Europe and Asia Pacific. The deal allows Orchard
to exploit Shemaroo’s music catalogue on more than 100 international digital platforms
like iTunes, Spotify, Rhapsody, e Music, Virgin FR, Amazon Digital Services Inc,
Xbox Music, r Dio, Media Net, etc. The vast range of audio includes film, non-film
across multiple genre like folk, pop, sufi, qawwalis, kid’s music and regional music.
Rollout of 4G would enhance the consumption of videos. National Optical fibre rollout
announced by the government will help for improving connectivity in terms of data
Growing availability of sub Rs 5,000 smart phones will help to increase affordable
customer base. Also improving technology will help to compress, convert, store,
play and forward videos, leading to consumption of content on more devices.
Broadcasters will increase investment in programming, due to reduction in carriage
fees. Increase in content acquisition by broadcasters, will increase the value of
the content thus demand for movies will increase with enhancing number of channels.
Great Buisness Model:
The company acquires forward content rights, with either complete ownership (perpetual
rights) or limited ownership (aggregate rights), which are then sold on a forward
rights basis for a period of five-to-seven years to broadcasters. In the life span
of a movie release, majority revenues (90-95%) are generated through domestic and
overseas theatricals and television release. The first cycle is typically 5-7 years,
post which Shemaroo enters the fray. Subsequent movie cycles are typically of five
year duration. Since the company enters the fray in subsequent cycles, the risk
reduces significantly, due to higher visibility of performance vis-à-vis the first
cycle of launch.