MANAGEMENT DISCUSSION AND ANALYSIS REPORT
According to the FICCI-EY media and entertainment industry survey, those who watch
online videos through bundled packages (online video services bundled with mobile and
broadband connections) will account for half of all online video viewers (399 million) by
2023, up from 284 million in 2020.
As of 2022, India registered ~527 million online video viewers, including streaming
services and videos on free platforms such as YouTube. Mobile video viewers stood at 356
million in 2020, driven by rising number of users preferring video content over the last
few years.
OTT video services market (video-on-demand and live) in India is likely to post a CAGR
of 29.52% to reach US$ 5.12 billion by FY26, driven by rapid developments in online
platforms and increased demand for quality content among users.
As per the latest report by the EY, Indias Media and entertainment Industry is
expected to reach Rs. 2.34 trillion (US$ 29.2 billion), then grow at a CAGR of 10% to
reach Rs. 2.83 trillion (US$ 35.4 billion) by 2025. Advertising revenue in India is
projected to reach Rs. 394 billion (US$ 5.42 billion) by 2024. The share of traditional
media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the
media and entertainment sector revenues in 2022.
Indian digital industry is expected to grow at 29% to reach a market size of Rs. 35,809
crore (US$ 4.35 billion) by the end of 2023. It is expected to contribute 3 8% to the
overall advertising industry in India, on par with television.
The OTT segment is likely to grow at a remarkable CAGR of 14.1% to reach Rs. 21,032
crore (US$ 2.55 billion) in 2026. Subscription services, which accounted for 90.5% of
revenue in 2021, are projected to account for 95% of revenue by 2026.
Within the M&E sector, Animation, Visual Effects, Gaming and Comic (AVGC) sector is
growing at a rate of ~29%, while the audio-visual sector and services is rising at the
rate ~25%; is recognised as of one of the champion sectors by the Government of India. The
AVGC sector is estimated to grow at ~9% to reach ~Rs. 3 lakh crore (US$ 43.93 billion) by
2024, stated Union Minister of Commerce & Industry, Consumer Affairs & Food &
Public Distribution and Textiles, Mr. Piyush Goyal.
pE/VC led 77% of the media and entertainment deals in 2022, contributing to 57% of the
total funding, while 23% of total deals were led by strategic players in 2022.
The Indian OTT audience universe currently stands at 424 million people, according to
The Ormax OTT Audience Sizing Report 2022. Of these, 119 million are active paid OTT
subscriptions in India.
KEY TRENDS IN VARIOUS SECTORS
? Television - Television advertising grew 2% to end2022 just behind its 2019 levels,
on the back of volumegrowth. Subscription revenue continued to fall for the third year in
a row, experiencing a 4% de-growth due toa reduction of five million pay TV homes and
stagnantconsumer-end ARPUs. While linear viewership declined7% over 2021, 8 to 10 million
smart TVs connected tothe internet each day, up from around 5 million in 2021
? Digital advertising - Digital advertising grew 30%to reach INR499 billion, or 48% of
total advertising revenues. Included in this is advertising by SME and long-tail
advertisers of INR180 billion and advertising earned by e-commerce platforms of INR70
billion
? Digital subscription - Digital subscription grew 27% to reach INR72 billion. 99
million paid video subscription sacross almost 45 million Indian households generatedINR68
billion, an amount which is over 60% of broadcasters share of TV subscription revenues.
Dueto a plethora of free audio options, just 4 to 5 millionconsumers bought music
subscriptions, generatingINR2.2 billion while online news subscriptionsgenerated INR1.2
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% to20% below the pre-COVID-19 levels.
Digital revenuesremain elusive for most newspaper companies
? Film - The segment grew 85% to reach 90% of its 2019levels as theaters re-opened.
Over 1,600 films were released in 2022, theatrical revenues crossed INR100billion, and
fewer films released directly on digita lplatforms. 335 Indian films were released
overseas
? Animation and VFX - As content production resumed, service demand - both domestic and
exports -increased, resulting in the segment growing 29% andcrossing INR100 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 withinternational participation took place after a gap of almost two
years
COMPANY PROFILE
Sea TV Network Limited is a well-known company of media and entertainment since 2004.
Sea TV is known as Sea Digital for its digital network. The entity offers high definition
picture quality and digital sound quality. Best signal delivers through the Set-top-box
provided by company. It has number of features such as HD channels, personal recorder
play, MPEG-4 technology, parental lock control, pay-per channel, multi-language system,
video-on-demand, customer care services and many others. Operating as Multi-System
Operators (MSO), the company delivers news and entertainment satellite services to
millions of household spectators in Agra. This hassle free service gives best experience
to watch TV to the viewers. Sea TV has portfolio of entertainment, news, music, religious
and movies channels which are as follows:-
SEA TV: Sea TV is a movie channel on which latest bollywood as well as hollywood movies
are shown for maintaining the entertainment demand of our customers. It is one of the most
watched channels of the Sea group.
SEA NEWS AGRA: Sea News-Agra has completed its 16 years by providing latest news of
Agra city and its adjoining areas to the viewers by presenting each &everynews related
in unbiased way.
SEA WAVE:Sea Wave is one of the free-to-air channels of Sea TV Network Ltd, which
offers sufficient dose of entertainment to its viewers. On Sea Wave, one day is dedicated
to one particular actor and a total of four movies of his/her are telecast on that day.
SEA THEA TRE:This channel aims to serve the segment of viewers which are fond of
mid-80s & 90s movies. On this channel, one could get to watch the movies which are out
of theatre now. So, watch it on Sea Theatre.
SEA MUSIC: As the name reflects, Sea Music is dedicated to all-time favorite songs of
Indian Cinema, whether its new or old. People fond of listening to music must tune to Sea
Music.
SEA JHANKAR:Like other free-to-air channels, Sea Jhankar too caters to one particular
segment of the viewers. This channel is for the people who love classical, retro and
melodious songs. The content of this channel is songs of old and bygone era.
SEA THUMKA: Sea Thumka is basically a channel based on folk culture of different Indian
states. The content shown on this channel is intended to promote and popularize regional
songs & movies of varied parts of the country.
SEA BHAKTI:It aims to quench spiritual thirst of the viewers. Famous devotional songs
sung by known singers and religious serials are shown on this channel. The bhajans played
on the channel is dedicated to the god/goddess that particular day belongs to.
SEAURDU: As the name suggests, Sea Urdu is dedicated to Muslim community. All the
contents of this channel are in urdu and aim to fulfill requirement of the community.
Through its wholly owned subsidiary Jain Telemedia Services Ltd., the company operates
its satellite channel focusing on Jainism, JINVANI.
JINVANI:
Jinvani, the worlds first devotional channel dedicated to the core values of Jainism,
tries to portray the face of Jain religion. As the term Jinvani implies, it is the holy
words sermonized by the liberated souls of Jain religion, who went on to be branded as
Jina later on. We, with Jinvani, have made a bid to take across the universe their
preaching of non-violence, truth, compassion to all living beings and other equally
significant traits of Jain religion. It is a delicious dish served on the spiritual
platter meant not only for the Jain populace spread across the globe, but to the entire
humankind. It aims at creating a world marked by peace and harmony, which has due space
for everyone.
Jinvani is the first full-fledged Jain channel having its powerful presence in several
countries and catering to millions of viewers worldwide. It offers variety of programme to
its audience related to health, astrology, spirituality, sermons, and pilgrimage and so
on. It provides live coverage of all major Jain events taking place all over the country.
STRENGTH & OPPORTUNITY
The Indian Entertainment and Media Industry are undergoing a structural shift in a
converging media era where consumers are increasingly taking control of their media
consumption. With the evolution of the industry, growth is increasingly being driven by
increased consumer spending which has a large impact on revenue streams. Knowledge of
evolving consumption trends will be a critical success factor in this scenario. The growth
has been evident in varying proportions across the different segments of the Indian
Entertainment and Media Industry i.e. Television, Print and Internet (Digital) being the
major media in terms of size and growth rates apart from other segments such as radio, out
of home, mobile. New technologies provide an opportunity to find new consumers.
Standardization of technologies at global level will be the key to their success.
RISK & CONCERN
External Risk
Digital Evolution: Media agencies are not structured to provide the necessary
manpower to tackle the complexities of digital. PwCs 2015 Chief Digital Officer study
that states, "the demands of digitization will ultimately force companies to
transform virtually every aspect of their business".
Increase of Tax Rate: After implementation of GST,TV Broadcasters would likely to
see rise in taxation from the current service tax to the final GST rate. The broadcasters
though, have been pitching with the government for parity with print for being considered
as an item of mass consumption.
Competitive Market: Competition will continue to increase with the entry of new
players which will further fragment the market. The emergence of social networking and
user-created content could shift the control of production away from entertainment
industries and into the hands of consumers.
Regulatory Risks: M&E industry is regulated by the TRAI & Ministry of
Information and broadcasting. The rules have direct bearing on the revenue of the Company
& can impact the financial performance of the Company.
Shift in consumer tastes: Consumer tastes and preferences are subjective and can
change anytime thereby affecting the M&E Industry. Peoples taste varies rapidly along
with the trends and environment they live in. This makes impossible to predict.
Investments in New Channels: The Company may from time to time launch new channels.
Content for these channels is either created or acquired. The success of any new channel
depends on various factors, including the quality of programming, price, extent of
marketing, competition etc. There can be no assurance that the Company will be as
successful in launching new channels as it has been the case of its existing channels.
Internal Risk
Technical Risk: Continuous changes in the technologies used by peers create
pressure on the company to upgrade with the new software, technologies and other equipment
to stand in the market.
Retention of Talent Pool: Retention of talent is one of the risks that corporate
are facing in todays environment. Most employees left the company when they found other
opportunities for them that may cause hardship to the company.
Compliance Risk:Due to implementation of Goods and Service Tax Act, now there have
to make certain changes in the IT & reporting system of the organization to meet out
the compliances requirements.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Internal Financial Controls with reference to financial statements as designed and
implemented by the Company are adequate. The Company has in place adequate internal
controls with reference to financial statements and operations and the same are operating
effectively. The Internal Auditors tested the design and effectiveness of the key controls
and no material weaknesses were observed in their examination. Further, Statutory Auditors
have verified the systems and processes and confirmed that the Internal Financial Controls
system over financial reporting are adequate and such controls are operating effectively.
HUMAN RESOURCE MANAGEMENT
We believe that people are the most valuable assets of the Company as they contribute
to the achievement of business objectives. It is the Companys promise to advance a
culture that enhances employee morale, facilitates effective performance through
personal/professional development and challenges employee potential.
In SEA TV, the Human Resources function shoulders this responsibility perfectly and
plays a critical role in realizing business objectives by leading organizational change,
fostering innovation and effectively mobilizing talent to sustain the firms competitive
edge. Our Endeavour is to build an organizational culture characterized by the following
aspects:
• Develop relationships that celebrate diverse ideas, perspectives and cultures.
• Help people realize their potential.
• Support a balance between family and work life.
• Recognize and reward individual and team achievement.
• Provide appropriate working conditions and resources to enable people to do
their work.
• Respect and be sensitive to the needs of individuals when the employment
relationship ends.
• Building a high performance culture. Developing entrepreneurs.
• Passion for quality.
• Learning Organization.
FUTURE OUTLOOK
Sea TV intends to grow through Diversification & Consolidation in future, Company
aims to diversify in the business of Print Media, Broadcasting thereby reducing the risk
and uncertainties of existing business apart from diversification company is also looking
forward towards consolidation of its existing business by acquiring the majority stake in
the business of MSOs operating in the nearby areas of Agra thereby reducing the cost of
operations by increasing the Economies of Scale and also increasing turnover due to
enhanced negotiation power.
Cautionary Statement
Certain statements in this Annual Report may be forward-looking statements. Such
forward looking statements are subjected to certain risks and uncertainties like
regulatory changes, local political or economic development, technological risks, and many
other factors that could cause our actual results to differ materially from those
contemplated by the relevant forward-looking statements. Sea TV Network Ltd. will not, be
in any way, responsible for any action taken based on such statements and undertakes no
obligation to publicly update these forward-looking statements to reflect subsequent
events or circumstances.
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