iWorld
Shemaroo hopes to grow at 38% CAGR over the next few years
MUMBAI: For the last three-four quarters, Shemaroo Entertainment Ltd has been guiding for softer margins due to investments in multiple initiatives. Among other initiatives, the new streaming service ShemarooMe and device business have also left an overall impact due to the higher investment. However, the company hopes to reap benefit from the new initiatives both in terms of margin and top-line. Despite some cyclical issues, the company hopes to grow at 38 per cent CAGR or higher over the next few years.
“If you see even for this quarter, the people expenses are up by about 40 per cent. Other expenses are up by 50 per cent. So, there is a certain investment that is being done. There are certain cyclical aspects, how long they will last? We do not know. So, it is very difficult for me to guide for the rest of the year because the economy is in a certain state,” Shemaroo Entertainment CEO Hiren Gada commented in an earnings call after Q1 FY 19 results.
But he also noted that over the last several decades of being in business, they have seen many cycles which have been regarded as opportunities to actually build longer-lasting and better return businesses.
While new media growth also slowed down to 25 per cent from 35 per cent, the telecom segment contributed 40 to 45 per cent to the overall revenue and the rest of the contribution was equally split between YouTube and syndication having 27 to 30 per cent. Though YouTube and syndication both continue to grow more or less equally fast, Gada hopes that over the next few quarters, ShemarooMe also will kick-in in terms of monetisation and revenue.
“Telco piece is now in a phase where that business is transitioning from a feature phone product to the smartphone; the market itself is transitioning from feature phone to smartphone. So, that is the whole aspect of that business. So, that business in a way you can say will be shrinking over the next few quarters,” Gada added.
Despite overall growth in the YouTube segment, the growth in revenue has been significantly lower compared to viewership growth as the realisations on a CPM basis, the ad rate basis continue to fall.
“So, this quarter, definitely YouTube has at least grown or come back into the growth trajectory or rather, I would say remained in the growth trajectory which it was towards the end of last year that has continued. So, that is one thing, in terms of the overall growth of digital media, I think one is that the base is now significantly higher. So, definitely that base effect is bound to kick in. That is one reason for the slowdown,” Gada added.
Shemaroo recently launched its over-the-top platform ShemarooMe in a market where more than 30 players are trying to win over consumers. Rather than creating web series or acquiring the latest and greatest movie blockbusters, Shemaroo has focused on segmenting the audience based on consumer needs.
iWorld
Prime Video and Hrithik Roshan reunite for quirky heist comedy Mess
HRX Films expands pact with quirky heist comedy set for production
MUMBAI: Prime Video is doubling down on its partnership with Hrithik Roshan, announcing a new comedy film Mess that promises chaos, chuckles and a clever twist on the classic heist.
Produced by Hrithik Roshan and Eshaan Roshan under HRX Films, a division of FilmKraft Productions, the film is being made in association with Soda Films Lab. Directed by Rajesh A Krishnan, Mess marks the second collaboration between the streaming platform and HRX Films after the upcoming thriller Storm.
At the heart of Mess lies an unusual premise. A group of robbers break into the home of a man with OCD, only to find themselves outmatched in a night-long standoff that flips the script on who is really in control. It is a set-up that blends tension with humour, turning a break-in into a breakdown of expectations.
Prime Video India director and head of originals Nikhil Madhok said, “A good story should surprise and entertain, and Mess does both with ease. It brings together a unique premise, memorable characters and a tone that keeps you laughing throughout.”
He added that the collaboration with HRX Films continues to grow stronger, with the new film reflecting a shared appetite for bold and original storytelling.
Hrithik Roshan said, “After Storm, Mess feels like a natural next step in our journey with Prime Video. The film captures the kind of unconventional storytelling we want to champion, with Rajesh bringing a distinctive voice to the narrative.”
Director Rajesh A Krishnan said, “The world of Mess is a mix of comedy and chaos, unusual enough to keep audiences on edge while still delivering humour. It has been a deeply collaborative and creatively fulfilling experience.”
The original screenplay comes from Paul Soter, with adaptation and dialogues by Kapil Sawant, adding another layer of craft to the film’s offbeat narrative.
As production gears up, Mess looks ready to live up to its name, serving up a delightful tangle of mayhem, mischief and movie magic for audiences in India and beyond.
