Diksat Transworld Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

INDIAN MARKET:

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. According to the April 2025 edition of the IMFs World Economic Outlook, Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

According to the recent report on Indian Media & Entertainment Industry published by EY the Indian Media and Entertainment (M&E) sector grew 3.3% in 2024 from INR 2.30 trillion to INR 2.50 trillion (US $29.40 billion). Digital Media emerged as the largest segment, accounting for 32% revenue share. However, subscription revenues fell due to a decrease in Pay TV homes and poor theatrical performances by films. Overall, the sector is projected to grow by 7.2% in 2025, reaching INR 2.68 trillion (US $31.6 billion).

The landscape of the Indian Media and Entertainment (M&E) has undergone a significant transformation, with digital media finally breaking televisions 20-year stronghold to become the largest segment in the industry. This historic milestone marks the dawn of a new era, one where digital platforms redefine not only the creation, distribution, and monetization of content but also the very core of what the M&E sector represents. Keeping in line with the overall growth of digital media, your Companys Digital Music Channels continue to generate steady stream of revenue to the Company. Going forward, your Companys main growth driver will be in the digital media sector, which will be contributing major share of its revenue and profitability

The biggest advantage of digital media is that the digital content goes to the global audience. There are no geographical limitations, thereby giving an opportunity to content creators to garner revenue from various countries. The ability to monetise digital content is not a limited practice and comes in many forms. Today, through subscription models, pay-per-view and advertising through digital media, companies can make their profits.

One of the major challenges that has always plagued the media industry is Piracy. On account of piracy, revenues are lost through violation of limited rights given to the users. Another significant problems is the issue of audience attention. The Audience is getting used to Short Videos and Reels.

Thirdly making money through monetization of digital content is also not easy. Ads alone are not enough. Subscription model is also not very effective. New forms of generating revenue have to be developed. To meet these challenges and threats, it will be necessary for media companies to use advanced analytics, AI-driven recommendations to engage viewers and maintain a regular stream of revenue.