Creative Eye Management Discussions


(Source: FICCI-EY Media & Entertainment Industry Reports 2023)

The Indian economy has been growing steadily and is now one of the fastest-growing economies in the world. Despite global challenges and tighter domestic monetary policies, the financial year 2022-23 saw Indias continued strong growth momentum, underpinned by a key focus on infrastructure development and private sector consumption. According to the National Statistical Office, Indias GDP grew 7.2% in 2022-23.

Celebrating its 75th year of independence this year, India emerged as the 5th largest economy in the world. The Indian economy demonstrated great resilience in the face of macroeconomic challenges and recovered faster than most other countries. This economic rebound can be attributed towards favourable policy measures, and government and private capital spending, even as private consumption remained sluggish. India was able to maintain its position as the fastest-growing economy amongst emerging markets and developing economies and developed economies.

India will likely grow at a moderate pace of 6.0%-6.5% in FY 2023-24, as the global economy continues to struggle. Growth in the next year will likely pick up as investments kick-start the virtuous circle of job creation, income, productivity, demand, and exports supported by favourable demographics in the medium term. This will be driven by the Governments policy support, increased infrastructure spending and emphasis on self-reliance or Atmanirbhar Bharat. Thus, shaping its long-term economic outlook to be positive.


Global M&E industry revenue stood at US$ 2.5 trillion in 2022 and is expected to expand at a CAGR of 3.9% reaching US$ 2.9 trillion in 2025. The M&E industry is a creative industry and is extremely dependent on markets, cultures, languages and consumer segments. However, the critical change in the new era is that demand is completely consumer-driven. The new age consumer not only demands what they like, but also in the format they like and they want to customize the content to their preferences.

The Media and Entertainment industry has undergone a significant transformation in the last decade due to the interactivity, digitisation, multiple-platforms, multiple-devices and globalisation of services. This industry includes multiple segments such as Movies/Cinema, Television, Music, Publishing, Radio, Internet, Advertising and Gaming. The trends and drivers for each of the segments vary across sub-segments, geographies and consumer segments, which make this vertical unique.


M&E sector in India experienced significant growth in 2022, leading to a total revenue increase of INR 348 Billion (19.9% YoY) to reach INR 2.1 trillion. The industry experienced growth momentum across both traditional media and digital, online gaming and VFX segments. This growth was driven by technology advancement with widespread adoption of smart phones and internet, globalisation, content diversity, evolving generational behaviour and supporting Government policies. With such strong momentum, the industry is well-positioned to achieve its projected growth rate of 11.5% in 2023, reaching 2.34 trillion and a CAGR of 10.5% to reach 2.83 trillion by 2025.

The growth was largely contributed by digital, filmed entertainment, live events and online gaming. Television, despite degrowth, continued to remain the largest segment. The share of traditional media dropped from 63% in 2021 to 58% in 2022, while that of digital media increased from 25% to 27% during the same period. Advertising at INR 1,049 billion continued its growth trajectory, crossing the INR 1 trillion mark for the first time in 2022; digital continued its dominance accounting for 48% of the advertising pie in 2022. Compared to advertising, subscription grew slower at 13% primarily due to degrowth in the television segment. The growth was primarily led by filmed entertainment, albeit from low base.

Indian M&E sector grew 20% in 2022 to reach INR2.1 trillion

( in Billion)

in INR Bn

2019 2020 2021 2022 2023E 2025E CAGR

(2022- 2025E)


787 685 720 709 727 796 3.9%

Digital Media

308 326 439 571 671 862 14.7%


296 190 227 250 262 279 3.7%



191 72 93 172 194 228 9.8%

Online Gaming

65 79 101 135 167 231 19.5%

Animation and VFX

95 53 83 107 133 190 21.1%

Live Events

83 27 32 73 95 134 22.2%

Out of Home Media

39 16 20 37 41 53 12.8%


15 15 19 22 25 53 14.7%


31 14 16 21 22 26 7.5%


1,910 1,476 1,750 2,098 2,339 2,832 10.5%

Source: FICCI-EY


Television - Television advertising grew 2% to end 2022 just behind its 2019 levels, on the back of volume growth. Subscription revenue continued to fall for the third year in a row, experiencing a 4% de-growth due to a reduction of five million pay TV homes and stagnant consumer-end ARPUs. While linear viewer ship declined 7% over 2021,8 to 10 million smart TVs connected to the internet each day, up from around 5 million in 2021.

Digital advertising - Digital advertising grew 30% to reach INR 499 billion, or 48% of total advertising revenues. Included in this is advertising by SME and long-tail advertisers of INR 180 billion and advertising earned by e-commerce platforms of INR 70 billion.

Digital subscription - Digital subscription grew 27% to reach INR 72 billion. 99 million paid video subscriptions across almost 45 million Indian households generated INR 68 billion, an amount which is over 60% of broadcasters share of TV subscription revenues. Due to a plethora of free audio options, just 4 to 5 million consumers bought music subscriptions, generating INR 2.2 billion while online news subscriptions generated INR 1.2 billion.

Print - Advertising revenues grew 13% in 2022 as print remained a "go-to" medium for more affluent and non-metro audiences. Subscription revenues grew 5% on the back of rising cover prices and has stabilized at 15% to 20% below the pre-COVID-19 levels. Digital revenues remain elusive for most newspaper companies.

Film - The segment grew 85% to reach 90% of its 2019 levels as theatres re-opened. Over 1,600 films were released in 2022, the article revenues crossed INR 100 billion, and fewer films released directly on digital platforms. 335 Indian films were released overseas.

Online gaming - New players, marketing efforts, specialized platforms and brand ambassadors all worked to grow the segment 34% in 2022 to reach INR 135 billion. Regulatory clarity improved, and this could lead to more FDI in this segment. There were over 400 million online gamers in India, of which around 90-100 million played frequently. Real money gaming comprised 77% of segment revenues.

Animation and VFX - As content production resumed, service demand - both domestic and exports - increased, resulting in the segment growing 29% and crossing INR 100 billion for the first time.

Live events - The fastest growing segment of 2022, organized events grew 129% over a depleted base as weddings, corporate events and activations, government initiatives, and large marquee IP with international participation took place after a gap of almost two years.

OOH - OOH media grew 86% in 2022 and reached 94% of 2019 levels. Capacity utilization improved in 2022, but rates remained challenged. Digital OOH screens increased to around 100,000 and contributed 8% of total segment revenues.

Music - The segment grew by 19% to reach INR 22 billion. Film music, which had reduced during the pandemic, returned at scale. 87% of revenues were earned through digital means, though most of it was advertising led, there being around only 4 to 5 million paying subscribers despite streaming reach of over 200 million.

Radio - Radio segment revenues grew 29% in 2022 to INR 21 billion but were still just 66% of 2019 revenues. Ad volumes increased by 25% in 2022 as compared to the previous year, though ad rates remained 20% below their 2019 levels. Many radio companies are looking at alternate revenue streams to grow faster.



High-quality content: The Indian film industry is experiencing a growth in demand for high-quality content, with an increasing number of domestic and international players investing in film production. This presents an opportunity for The Company to collaborate with other industry players and expand its reach in the film production space.

The Indian regional content market: The Indian regional content market is experiencing growth, with an increasing number of consumers seeking content in their native languages. This presents an opportunity for the Company to produce more regional content and cater to the growing demand.

Digital and OTT Platform: The rise of digital platforms has created a shift in consumer behavior, with an increasing preference for on-demand content. This presents an opportunity for the Company to expand its presence in the OTT space and cater to changing consumer preferences.

Largest Industry: The Indian Media and Entertainment industry is one of the largest globally with a history of steady growth. With films, Digital and TV content being the most popular form of mass entertainment in India, the film industry has witnessed robust double-digit growth over the past decade.

New Technology: With the advent of new technologies such as AR/VR and AI, there is an opportunity for the Company to incorporate these technologies into its content and create impressive experiences for consumers.


Competitive Industry: The rise of alternative entertainment channels, such as online streaming platforms, can increase competition as consumers have more choices to satisfy their entertainment needs.

Evolving technology: Rapidly evolving technology and changing consumer preferences can make it difficult to attract and retain customers.

Government regulations and policies: Changes in government regulations and policies, such as censorship laws, taxation policies and licensing requirements, can affect the operations and profitability of the entertainment industry as a whole.

Revolutionizing the traditional business model: The dynamic advancements in technology are revolutionizing the traditional business model, leading to the emergence of over-the-top (OTT) platforms, which has caused a shift in the entertainment industrys conventional approach. These platforms are pushing businesses in the M&E Industry to revamp/ renew their business model.

Revenue Risks: The Company earns revenue either by selling commissioned programs or Syndication of various content to various broadcasters, aggregators and satellite networks. The sustainability of the programs is mainly dependent on the concept, content and the technical expertise. Apart from this, Television Rating Points (TRP) is one of the key indicators, which decide the popularity of the program as well as sustainability of the program.

Production cost: The risk of getting the production getting extended the projected date or the risk of over spending during production. It requires large outlays of money that cannot be recovered if the project fails at any stage. Delay in planned release also shoots the whole production cost high.


The Companys turnover is from production of TV Contents/ Licensing of TV Serials Rights. Turnover of the segment is as follows:

(Amount in Lakhs)


31st March 2023

TV Serials




Profitability of the segment of the Company is given hereunder:

(Amount in Lakhs)


Revenue (Rs.) Cost (Rs.) Gross Profit/(Loss)

TV Serials

196.18 16.54 179.64


196.18 16.54 179.64


1. The Indian media and entertainment industry is expected to grow at a CAGR of over 10% and reach a market size of US$ 52.68 Billion by 2025. This growth presents an opportunity for the Company to expand its presence and generate more revenue.

2. The digital transformation and the increasing adoption of OTT platforms have opened up new avenues of growth and engagement. We are committed to leveraging these opportunities, investing in cutting-edge technologies and exploring innovative storytelling techniques to provide immerse and personalized entertainment experiences.

3. During the year under review, the Company had generated Revenue from the licensing of various rights of its mythological serials to various broadcasters and digital platforms and still quite hopeful to generate more revenue in the ensuing year due to increasing digital demand globally.

4. The Company is exploring all possibilities in the digital space which is going to be key driver in future.

5. With a rich industry presence of over 40 years, the Company remains committed to its purpose of quality and consistent entertainment, focusing on creating, engaging content for different age groups, formats, media and platforms.

6. The Company is in process of creating high quality content featuring good talent, popular celebrities, writers and award-winning directors to stand out in the markets intense competition. The Company is proposed to anticipates changes and upgrades in the industry and shall up grades its content to stay ahead.

7. The company believes in creating more mythological IPRs which has lots of opportunity to exploit globally on various medium which can generate substantial revenue for the company.


The highlights of the financial performance of the Company for the financial year 2022-23 are as under:

( in Lakhs)


31.03.2023 31.03.2022

Total Income

393.21 437.03


41.09 (17.99)


70.06 62.91


8.25 9.08

Profit/ (Loss) before tax

(37.22) (89.98)

Current Tax

0.00 0.00

Deferred Tax

0.00 0.00

Profit/ (Loss) after tax

(37.22) (94.23)

The operations/business and financial review in detail is covered in Directors report and is to be read as a part of this report itself.


Human resources are the most critical element responsible for growth and the Company acknowledges their contribution and works towards their satisfaction as a top priority. The Media & Entertainment industry is highly dependent on its workforce and Human Resource Management (HRM) plays a crucial role in ensuring smooth functioning of this industry. Company recognizes the importance of its employees overall development, prioritising their needs and well-being.


The Company is committed to good corporate governance practices and has an adequate system of internal controls for business processes, operations, financial reporting, fraud control and compliance with applicable laws and regulations. The Board of Directors monitors the internal financial controls based on the internal control over financial reporting criteria established by the Company. Company also has an audit function to provide reasonable assurance regarding the effectiveness and efficiency of operations, safe guarding of assets, reliability of financial records and reports and compliance with applicable laws and regulations. The Company follows stringent procedures to ensure accuracy in financial information recording, asset safeguarding from unauthorized use and compliance with statutes and laws.


Any Statements found in the Management Discussion and Analysis Report may constitute ‘Forward looking statements, which may include statements relating to future results of operations, financial conditions, business prospects and projects etc., are based on the current assumptions, estimates, expectations about the business, industry and markets in which your Company operates. Actual results might differ substantially or materially from those expressed and implied due to several factors which are beyond the control of the management.

For and on behalf of the Board of Directors Creative Eye Limited


Dheeraj Kumar Chairman and Managing Director

Place: Mumbai Date: 14th August, 2023