Creative Eye Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

(Source: FICCI-EY Media & Entertainment Industry Reports 2025)

The Indian Media & Entertainment (M&E) industry continued its upward trajectory in FY 2024 25, driven by strong growth in digital consumption, increased OTT subscriptions, revival in advertising spends, and the expansion of regional content. As per industry estimates, the Indian M&E industry grew at a CAGR of ~9%, with digital media and television continuing to be the largest contributors.

The demand for content across platforms — TV, OTT, social media, and cinema — has witnessed a transformation, with consumers increasingly preferring personalized, on-demand experiences. The implementation of 5G technology, AI-driven content recommendations, and the rise of vernacular content have further shaped the industry landscape.

MEDIA & ENTERTAINMENT (M&E) SECTOR

The Indian Media & Entertainment (M&E) sector reached 2.5 trillion (US $29.4 billion) in 2024, growing by 3.3% over 2023, and contributing approximately 0.73% to GDP

Digital media surged 17% to 802 billion, overtaking television as the largest segment and now accounting for 32% of total M&E revenues

Advertising revenue grew 8.1%, driven by performance and e-commerce advertising; digital ad spends made up 55% of total ad revenue.

Live events expanded by 15%, crossing 100 billion, supported by corporate, government/political and international concerts

OOH media grew by 10%, with digital OOH jumping 78%, rising to 12% of the OOH segment revenues

Radio revenues rose by 9%, bolstered by new content and event-based monetization; print ad revenues increased modestly (~1%), while subscription revenues declined (~1%)

Television faced challenges: linear TV ad revenue declined 6% and subscriptions dropped 3%, with loss of six million pay TV homes; however Free to Air and Connected TV households increased, with weekly active CTV users rising to

30 million in 2024 (vs 23 million in 2023)

Animation & VFX revenue declined 9%, impacted by global disruptions (e.g., Hollywood strike) and softer ad budgets

Key trends

Indian M&E sector grew 3.3% in 2024 to reach INR2.5 trillion

All figures are gross of taxes (INR in billion) for calendar years : EY estimates

	2019	2022	2023	2024	2025E	2027E	CAGR (2024-2027)
Digital Media	308	571	686	802	903	1,104	11.2%
Television	788	726	711	679	676	667	(-)0.6%
Print	296	250	259	260	262	267	0.9%
Online gaming	64	222	236	232	260	316	10.8%
Filmed Entertainment	191	172	197	187	196	213	4.3%
Animation and VFX	95	107	114	103	113	147	12.5%
Live Events	83	73	88	101	119	167	18.2%
Out of Home Media	51	48	54	59	66	79	10.2%
Music	15	46	54	53	60	78	13.4%
Radio	31	21	23	25	27	30	6.6%
Total	1,922	2,237	2,422	2,502	2,682	3,067	7.0%
Growth		23.30%	8.30%	3.30%	7.2%

The Indian M&E sector continued to grow in 2024, albeit at a relatively modest 3.3%; it grew by INR 81 billion to reach INR 2.5 trillion (US$29.4 billion).

The M&E sector contributes 0.73% to Indias GDP.

While the sector was 30% above its pre-pandemic 2019 levels, television, print and radio still lagged their 2019 revenues.

Digital media overtook television for the first time to become the largest segment, contributing 32% of M&E sector revenues.

We expect the M&E sector to grow 7.2% in 2025 to reach INR 2.68 trillion (US$ 31.6 billion), then grow at a CAGR of 7% to reach INR 3.07 trillion (US$ 36.1 billion) by 2027.

AI-LED INNOVATION: PUTTING THE AI IN MEDIA

The integration of Artificial Intelligence (AI) in the Media and Entertainment (M&E) industry is no longer a futuristic concept

— it is an operational reality that is reshaping every aspect of the content lifecycle. From ideation and scripting to audience engagement and monetization, AI is enhancing creativity, optimizing costs, and personalizing experiences at scale.

1. AI in Content Creation & Development

Our company has begun leveraging AI tools for automated script analysis, genre-specific storyline generation, and visual pre-visualization. AI accelerates creative workflows while empowering writers, editors, and designers with smart suggestions, content tagging, and faster edits — without compromising on originality.

2. AI in Personalization & Viewer Experience

By using machine learning algorithms and predictive analytics, we can now offer tailored recommendations to audiences across OTT and digital platforms. These models factor in viewing patterns, sentiment analysis, and behavioral data to improve user retention and engagement rates.

3. AI in Marketing & Distribution

AI-enabled tools help us optimize content placement, campaign planning, and digital media spends. By analyzing historical ad performance, demographic clusters, and platform trends, we can drive performance marketing strategies that are both data-driven and cost-effective.

4. AI in Post-Production & Localization

Our adoption of AI-powered dubbing, subtitling, and voice modulation solutions has significantly reduced turnaround time and enhanced localization accuracy. This has enabled quicker content rollouts across languages and markets, improving scalability.

5. AI in Rights Management & Monetization

AI is also being deployed to track content usage, flag piracy, and enforce licensing terms across digital ecosystems. With blockchain-ready audit trails and automated compliance checks, our revenue assurance systems have become more robust and transparent.

6. Future Outlook: Building a Smarter Media Ecosystem

As part of our forward strategy, we are investing in Generative AI, AI-enhanced visual effects, and smart newsroom automation to streamline production pipelines. We aim to continue harnessing AI to not only enhance creativity but also enable faster decision-making and sustainable content economics.

OPPORTUNITIES AND THREAT WITHIN THE INDIAN M&E SECTOR OPPORTUNITIES

Surge in OTT and Digital Content Consumption

Increasing smartphone penetration and affordable data have boosted on-demand content viewing. This opens up monetization avenues across urban and rural markets.

Growing Demand for Regional and Vernacular Content

Audiences increasingly prefer content in their native languages. Regional storytelling enhances viewer engagement and widens market reach.

Technological Advancements like AI, AR/VR, and Cloud Production

AI, AR/VR, and cloud tools are transforming content creation and delivery. These technologies improve efficiency and viewer experience.

Strategic Partnerships with Global Platforms and Telecom Operators

Collaborations with global OTTs and telecoms expand distribution and revenue potential. They also enhance global visibility for Indian content.

Growth of Connected TV and Hybrid Viewing Models

Connected TVs (CTVs) are bridging traditional and digital audiences. This enables premium ad targeting and richer viewer experiences.

Increasing Global Demand for Indian IP and Storytelling

International audiences are embracing Indian content via dubbing/subtitles. This trend supports global syndication and cross-border co-productions.

THREATS

Intense Competition in the Digital Space

Global and local players crowd the OTT landscape, creating pricing and content pressure. Sustaining viewership requires high-quality, differentiated offerings.

Piracy and Copyright Violations

Unauthorized distribution continues to hurt content creators revenues. Weak enforcement of IP laws limits content monetization.

Regulatory Uncertainty Around Content and Data

Frequent policy changes on censorship and privacy increase compliance risk. Unclear frameworks can lead to legal and reputational issues.

Volatility in Advertising Revenues

Ad spend is vulnerable to economic cycles and brand sentiment. This impacts financial predictability for ad-dependent media businesses.

Rising Content Production Costs and Talent Acquisition Pressure

High demand for quality content has inflated production budgets. Competition for top creative talent strains timelines and margins.

Fragmentation of Audience Across Multiple Platforms

Consumers are spread across OTTs, YouTube, social media, and CTV. This fragmentation challenges discoverability and loyalty for new content.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Companys turnover is from production of TV Contents/ Licensing of TV Serials Rights.

Turnover of the segment is as follows:

(Amount in Lacs)

Segment	31st March 2025
TV Serials	260.80
Total	260.80

Profitability of the segment of the Company is given hereunder:

Segment	Revenue (Rs.)	Cost (Rs.)	Gross Profit/(Loss)
TV Serials	260.80	Nil	260.80
Total	260.80	Nil	260.80

OUTLOOK:

1. The media and entertainment landscape is rapidly evolving, with digital and OTT platforms poised to become dominant growth engines.

2. Streaming platforms continue to fuel demand for original, inclusive content especially that reflects regional cultures and voices—creating opportunities for targeted, niche productions

3. International collaborations and cross-cultural storytelling are opening new audience markets, enabling broadcasters and studios to extend their reach and enhance monetization

4. Production workflows are being revolutionized by AI (for editing, localization, graphics), immersive tools like AR/VR, and high-definition formats (4K/8K), all of which are enabling creative, efficient, and higher-quality storytelling

5. Further your company owns precious properties (IPR/ Copy Rights) like Om Namah Shivay, Shree Ganesh , Lord

Vishnu and many more in perpetuity which have been generating substantial business revenue for the company since years. During the year under review, the company had generated revenue from the licensing of various rights of above mythological serials for various broadcasters and digital platforms and still quite hopeful to generate more revenue in the ensuing year due to increasing digital demand globally.

6. The Mythological IPR has always commercial value which can be monetized in perpetuity. To look forward and take ahead the vision of the company the management of the company is focusing to create more Mythological IPR/ Copyright in future which shall contribute in the future business growth of the company. These IPR/Copyrights shall be the life time assets of the company.

7. Your Company proactively monitors evolving consumer preferences and refines both content and distribution strategies in response. Digital transformation and the rapid ascent of OTT platforms have unlocked powerful new pathways for growth and engagement. We are embracing this digital shift—investing in innovative platforms and distribution channels—to deliver content that truly resonates with modern audiences

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The highlights of the financial performance of the Company for the financial year 2024-2025 are as under:

(Rs. in Lacs)

Particulars	31.03.2025	31.03.2024
Total Income	348.34	137.69
EBIDT	25.01	(165.95)
Interest	90.27	85.61
Depreciation	6.49	7.41
Profit/ (Loss) before tax	(71.75)	(258.97)
Current Tax	0.00	0.00
Deferred Tax	0.00	0.00
Profit/ (Loss) after tax	(71.75)	(258.97)

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

The Media & Entertainment industry thrives on creativity, innovation, and adaptability all of which are driven by people. At the heart of our business strategy lies a commitment to building a future-ready, digitally capable, and creatively empowered workforce. Our HR philosophy is centered on enabling talent to flourish in an ecosystem that values agility, diversity, and lifelong learning.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Robust internal audit practices ensure compliance with laws, protection of IP, and accurate financial disclosures.

Governance oversight through Audit Committee reviews and risk mitigation protocols, aligning with sector-specific challenges.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Although expectations are based on reasonable assumptions, actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations including but not limited to changes in exchange rate fluctuations, tax laws, litigation, labour relations, interest costs, political and economic environment.

	For and on behalf of the Board of Directors
	Creative Eye Limited
	Sd/-
	Zuby Kochhar
Place: Mumbai	Chairman and Executive Director
Date: 28th August, 2025.	DIN-00019868