Spicy Entertainment & Media Ltd Management Discussions.

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic developments in principal markets and other incidental factors. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only as of their dates.

Indian Macroeconomic Environment

The world is facing an unprecedented crisis with the highly contagious COVID-19 hitting major economies across the world in rapid succession. As on August 31, 2020, COVID-19 has had 36,87,939 people infected in India, claiming 65,434 lives. Indias real GDP growth rate was 4.2 per cent in 2019-20 as per the provisional estimates released by National Statistical Office (NSO) compared to 6.1 per cent recorded in the previous year. Nominal GDP for the year was estimated at Rs. 203.40 lakh crore, lower compared to the budget estimates. India imposed a strict lockdown from March 25, 2020 to control effect of COVID-19 pandemic. Economy was under standstill in April and resumed partially with restrictions on various activities in May as the Government made a courageous choice of supporting livelihoods. In June 2020, country entered the unlocking phase and witness green shoots in the economy. India is expecting contraction in economy in fiscal 2020-21 due to COVID-19.

Indian Media and Entertainment Industry

The Indian media and entertainment (M&E) is expected to grow at a CAGR of 12.0% to Rs. 2,34,900 Crore over the next three years, with growth in all the segments.

During the year 2020, television increased its reach and engagement with the audience, retaining its position as the default entertainment medium for Indian consumers. Growth in online video consumption accelerated, helped by the increased availability of affordable data and content on digital platforms.

Print media continued to grow, albeit at a much slower pace. The movie industry surpassed all the previous box-office records on the back of strong performances in both domestic and international markets. Radio, in addition to entering new cities, is diversifying into new business offerings like concerts and activations. Growth in live events was led by premium properties, sports events and digital integration.

Digital Media

OTT Platforms are one of the fastest - growing networks of todays Indian online marketing world. The OTT-based segment accounted for the largest revenue share of over 40% in 2019. It is owing to a feature that OTT-based solutions deliver film and TV content through the internet without the need for users to subscribe to traditional cable or pay-TV services. The segment is also expected to register the fastest growth over the forecast period owing to the growing demand for improved automation of business processes and the availability of broadband infrastructure. Emerging trends in OTT, such as hybrid monetization models, rising demand for digital original content, and content fragmentation due to intensive competition, are expected to contribute to the segment growth.

The COVID-19 pandemic has placed more than 1/4th of the worlds population under lockdown. This has resulted in increased demand for online streaming and entertainment services. The video streaming services have experienced a rise of around 10% in viewership during the lockdown. Major platforms, including Netflix, Amazon Prime Video, YouTube, and Disney+ have registered a spike in viewership worldwide.


The Media & Entertainment industry has seen influx of new broadcasters and advent of digital media platforms post internet boom which has led to a large addressable base consuming entertainment content. We believe that we are one of the largest beneficiaries of this new digital phase of the industry. Our focus will always be to innovate our product offerings and continue to partner with newer players.

Company performance overview

The Company has reported profits during the year under review. The operational performance of the Company is on the growth path. The Financial & operational details are mentioned in the Financial Statements.