Sungold Media & Entertainment Ltd Management Discussions

COMPANY OVERVIEW:

Sungold Media and Entertainment Limited engaged in the business as entertainment company and to organize, equip, arrange, write, manage, control, run, exhibit, distribute, direct, provide and to produce, promote, project, participate, manipulate, treat, process, prepare, alter, develop, expose, edit, make, remake, display, print, reprint, convert, finish, buy, sell, run, import, export, and to act as syndication, broker, agent, coordinator, distributor, organiser, proprietor, movie makers, copyright owners, video right owners, audio right owners, theatre owners, dubbing right owners, cinema studio owners, dance, music and provide complete technical. To own, undertake, carry on and operate directly or indirectly in India and abroad the business of editors, publishing producing, trading, commercial and industrial houses or for public in general in the interest of public relations which may include any all subject of common interest and to carry on the business of multilevel marketing , network marketing , digital marketing of products/services/consultancy and other forms of marketing and electronic services or devices including applications relating to media and entertainment.

MEDIA & ENTERTAINMENT INDUSTRY IN THE INDIAN ECONOMY:

The Media and Entertainment (M&E) industry has experienced growth and transformation over the years. Factors such as internet access, economic growth, and increased consumer spending have played a role in its popularity. What sets this company apart from its competitors is its content creation and the continuous increase in Average Revenue Per User (ARPU).

These factors have greatly contributed to the advancement of the industry making India a frontrunner in adoption. As a result industry groups now have access to amounts of data that can help them gain better insights into their consumers. Moreover, India has emerged as a content creator, particularly in the field of visual effects (VFX).

The Indian M&E industry has proven its resilience to the market and is headed towards substantial expansion. This upward trend is driven by growing consumer demand and increased advertising revenue. According to FICCI EY Indias advertising to GDP ratio is projected to increase from 0.38% in 2019, to 0.4% by 2025 with the media and entertainment industry reaching a valuation of $35.4 billion.

MARKETING INITIATIVES:

The Company has been working across regions to make brand in the industry. It strives to differentiate itself from the others with its innovative ideas and brilliant execution. The Companys mission is to drive engagement through trendy, youthful and quality content. We are also actively engaged in promoting and developing new initiatives that engage audience.

GOVERNMENT INITIATIVES:

Many initiatives are being taken by Government of India and the State Governments to promote the Media and Entertainment sector, like Amendments to the Cinematograph Act, Information Technology Intermediary Guidelines, Digital Media Ethics Code (Rules), enhanced FDI limits in cable at DTH sectors and others. A lot of reforms have been brought in the TV Broadcasting sector, like uplinking and downlinking guidelines that ensure Ease of Doing Business and ease of compliance.

The National Animation, Visual Effects, Gaming and Comics (AVGC) policy is now in its advanced stage and is a pivotal component of "Create in India for the World". He assured that the AVGC policy that has been drafted with inputs from industry stakeholders will facilitate investment, foster innovation, ensure skill development, protect intellectual property and help build world class infrastructure. I & B Ministry has also envisaged setting up of a National Centre of Excellence for AVGC and Extended Reality sector which will create a world-class talent pool for this segment and would also allow setting up of incubation centres and provide guidance to the industry.

Recently a scheme has been announced for giving incentives to foreign filmmakers for shooting in India. India has signed co-production treaties with multiple countries to ensure that big budget international films come to our country. This will not only bring in investments but create cross-country linkages and catapult us to showcase our soft power.

I&B Ministry also organizes film festivals like IFFI, MIFF etc. and participates in various international film festivals to promote Indias M&E sector and showcase our cinematic culture to the world. I& B Secretary said that the Ministry also has many regional film festivals which help to disseminate the culture of filmmaking, film-viewing and consuming M&E content at the grassroots in areas which have remained untouched by the mainstream.

The I & B Secretary Shri Jaju also said that conferences like FICCI FRAMES will make India a world leader in M&E segment and will bring in multiplier effect and promote economic development in our country.

The FICCI-EY Report "Reinvent - Indias Media & Entertainment Sector Is Innovating for the Future", was also launched on the occasion. Like previous years, FICCI FRAMES 2024 will provide a platform for communication and exchange between M&E stakeholders, including industry figures, influencers, and policy makers for three days. This conference has brought together more the 400,000 professionals from India and abroad representing the various sectors of the industry.

FUTURE OUTLOOK:

Indian media industry has tremendous scope for growth in all the segments due to rising income and evolving lifestyle.

The Indian Media & Entertainment (M&E) sector is set for substantial growth, with a projected 10.2% increase, reaching Rs. 2.55 lakh crore (US$ 30.8 billion) by 2024 and a 10% CAGR, hitting Rs. 3.08 lakh crore (US$ 37.2 billion) by 2026. In 2024, the projected revenue in the Digital Media market in India is expected to reach US$ 10.07 billion. The countrys entertainment and media industry is expected to see a growth of 9.7% annually in revenues to reach US$ 73.6 billion by 2027. Revenue of the Indian video OTT market that is dominated by players such as Amazon Prime Video, Netflix, and Disney+ Hotstar is set to double from US$ 1.8 billion in 2022 to US$ 3.5 billion by 2027. 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.

Key growth drivers included rising demand for content among users and affordable subscription packages. The Indian mobile gaming market is poised to reach US$ 7 billion, in value, by 2025. The music industry is expected to reach US$ 445 million by 2026 from US$ 180 million in 2019. Growth of the sector is attributable to the trend of platform such as You Tube that continues to offer recent and video content-linked music for free, which is expected to drive the paid OTT music sector reaching ~5 million end-users by 2023, generating revenue of ~Rs. 2 billion (US$ 27 million). By 2025, the number of connected smart televisions is expected to reach ~40-50 million. 30% of the content viewed on these screens will be gaming, social media, short video, and content items produced exclusively for this audience by television, print and radio brands. Video viewers increased 7% (36 million) in 2023 to reach 563 million, which is around 98% of smart phone owners and wired broadband subscribers. Total online video content investment in India stood at Rs. 125 billion (US$ 1.51 billion) in 2023, representing a 52% increase over 2022 due to more than a twofold growth in sports rights values. By 2025, ~600-650 million Indians, will consume short-form videos, with active users spending up to 55 to 60 minutes per day. 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. Indias Direct-To-Home (DTH) Services market is expected to expand to US$ 7.59 billion in 2029 from US$ 6.48 billion in 2023, growing at a CAGR of 2.8%. Indias media and entertainment industry is the fifth largest market globally and is growing at the rate of 20% annually, according to Union Information and Broadcasting Minister Mr. Anurag Thakur. To ease filming in railways, the Film Facilitation Office (FFO) set up in the National Film Development Corporation (NFDC) collaborated with the Ministry of Railways to develop an integrated single window filming mechanism to streamline the permission process for filming across railway premises. The government also announced that it is working towards creating a National Centre of Excellence for AVGC (animation, visual effects, gaming, and comics). Mr. Apurva Chandra, Secretary, Ministry of Information & Broadcasting, Government of India announced that the government is working to soon bring an Animation, Visual Effects, Gaming and Comic (AVGC) policy and create an AVGC Mission. In August 2023, Netflix inked a "first-of-its-kind" deal with Jio Platforms to bundle the streaming service with the carriers two pay-as-you-go plans as the American giant pushes to expand its subscriber base in the key Asian market. In April 2023, Prime Minister Mr. Narendra Modi commissioned Low Power FM Transmitters with a capacity of 100 watt at 91 locations. These transmitters have been installed in 84 districts of 20 states. With this, the network of transmitters with All India Radio has increased from 524 to 615. This addition will further boost the coverage of AIR to 73.5% of the population of the country. The Star-Viacom18 merger deal signed on February 28 will create an US$ 8.5 billion media goliath with a dominating presence in both TV and digital segments. A partnership was announced in April 2023 between the Ministry of Information & Broadcasting and Amazon India in the field of media, entertainment, and public awareness. Indian Over-The-Top (OTT) platforms have demonstrated significant growth in the global market, witnessing a 194% increase in revenue from international viewers over the last two years. According to EY, print medias revenue is anticipated to increase by 3.4% between 2023-2026 as a result of increased government and corporate advertising spending. In the Interim budget of 2024-25 the Ministry of Information and broadcasting received Rs. 4,342.55 crore (US$ 523.20 million). Under the Union Budget 2023-24, for other autonomous bodies such as the Press Council of India stood at Rs. 27 crore (US$ 3.52 million), Films and Television Institute of India (FTII) at Rs. 55.39 crore (US$ 7.18 million) and Indian Institute of Mass Communication at Rs. 52 crore (US$ 6.79 million). The allocation for broadcasting under social services stood at Rs. 2,839.29 crore (US$ 370.98 million).

INTERNAL CONTROL:

The Company has a robust Internal controls framework, commensurate with the size of its operations, geographical spread and changing risk complexity, impacted by varying internal and external factors. The Companys internal control systems comprises policies and procedures designed to ensure sound management of its operations, safekeeping of its assets, optimal utilisation of resources, reliability of its financial information, and compliance. The Company has appointed Chartered Accountant, to give independent, objective, and reasonable assurance on the sufficiency and effectiveness of the Internal Controls. The audit firm evaluates and tests the effectiveness and appropriateness of internal controls on a regular basis. The Audit Committee is informed of significant audit findings after the evaluation, and measures taken thereof. The various process owners implement corrective measures in their respective domains based on internal audit results, thereby strengthening controls. The Audit Committee approves the yearly internal audit plan, examines the internal control systems sufficiency and effectiveness, assesses key audit observations, and supervises the implementation of audit.

HUMAN RESOURCES:

The Company believes that employees are at the core of its strategies to achieve all present and future organizational goals. The Company has consciously developed a positive working atmosphere that provides a satisfying work environment, promotes career progression and encourages employee safety. In the current financial year, we have focused our efforts on enhanced learning and development programs, enhanced communications, making our policies more employees friendly, and overall nurturing a culture of collaboration and teamwork. Our concerted efforts to enable the growth of our employees along with the Company, has helped us significantly in ensuring enhanced employee satisfaction in Company.

OPPORTUNITIES/ ADVANTAGES :

The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various segments, film, television, advertising, print and digital have witnessed a tremendous growth in the last few years. The industry is highly driven by strong consumption in non-metro and small cities, intense emergence of regional media and burgeoning new media businesses and formats.

ROBUST DEMAND:

According to a report published by IAMAI and Kantar Research, India internet users are expected to reach 900 million by 2025, from ~622 million internet users in 2020, increasing at a CAGR of 45% until 2025. The advertising-based video on demand (AVoD) segment is expected to rise at a CAGR of 24% to reach US$ 2.6 billion by 2025.

MEDIA AND ENTERTAINMENT INDUSTRY TRENDS 2024

Media & Entertainment Industry Digital Transformation Statistics 2024

The media & entertainment industry has experienced tremendous growth in the past few years. According to Statistic,

The value of the media and entertainment market showcases a higher growth level and will reach around 2.93 trillion by the end of 2026. The level of Revenue in the Digital Media market is projected to reach US$627.60bn in 2023. The video streaming apps Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.48%, resulting in a projected market volume of US$137.00bn by 2027.

Benefits Of Digital Transformation In Media & Entertainment

The digital transformation in media and entertainment has benefited the entertainment industry in a number of ways. It has helped in enhancing the growth and development in this sector. Given below are the advantages of media and entertainment digital transformation:

Enhance User Experience

The entertainment industry has become very competitive. In order to gain viewers attention by offering them excellent customer experience, The integration of digitalization has helped to enhance user experience.

The users can watch the content of their choice as per their availability on the entertainment platform designed by an expert in media & entertainment software development company.

The usage of 3D technology and entertaining graphics helps in enhancing their experience and will help the businesses operating in the industry to get a competitive edge.

Increase In Brand Collaboration

To make your brand more popular in the media and entertainment industry, you need to collaborate with various brands. The emergence of digitalization can help in making these collaborations more enhanced and easier.

The Self-serve platforms and digital technologies have made it easier for media companies to remove manual processes and launch effective ad campaigns automatically on their platform. It has also helped in increasing their business revenue.

Access To Real-Time Data And Analytics

The data can be the greatest asset of a media company which can help them experience an unmatched growth level. AI and other trending technologies have helped companies access real-time data related to viewers preferences. This data can be used to make the content more user-centric and trending. Also, the data can be used for bringing innovation in entertainment industry.

Effective Advertisements

To make your content more popular amongst the audience, you need to advertise it on multiple platforms. The emergence of advanced technologies has made it easier and simpler.

Now media companies can showcase their advertisements on multiple entertainment platforms easily. Also, they can add customization in the ads to make them more impactful and popular.

Wide Audience

The customer base of the media & entertainment industry was very limited earlier. But after the emergence of digitalization, it has grown at a very fast pace.

The media companies can release their films and web series on global platforms where people from all over the world can view them without facing any geographical restrictions. With an increased customer base, your business can get a higher amount of revenue and fast pace business growth.

Enhanced Accessibility

In earlier times making, it was very challenging for artists to make their content accessible to the audience. They have to make it rewatch to the audience by involving various middlemen. This will help in raising security concerns.

But with the emergence of digital platforms, artists can share their creations directly with the audience. They do not require any middlemen in between. Also, the audience can have access to unlimited entertainment options and get wider choice options.

TECHNOLOGIES RESPONSIBLE FOR DIGITAL TRANSFORMATION IN THE MEDIA AND ENTERTAINMENT INDUSTRY

Are you curious how the media 24/7 entertainment industry has undergone such a massive transformation? Well, here are a few technologies that are responsible for the Digital Transformation in The Media And Entertainment Industry:

Artificial Intelligence

AI is a revolutionary technology that has helped in the digitalization transformation in the entertainment industry. One of its ground-breaking applications includes AI dubbing, a cutting-edge solution that has revolutionized the way videos and films are localized for global audiences." Through AI apps designed by professional custom artificial intelligence development company, businesses can enhance their business communication and make it more effective by using chatbots. Also, the revolutionary AI can help you analyze your customers preferences and customize your business content according to those preferences.

Blockchain

The use of decentralized blockchain technology has transformed the working of businesses operating in the entertainment industry. The technology helps businesses to track IP across many channels.

The technology helps to make entertainment content accessible to all users. Technology helps music artists can have a more open and direct relationship with the audience.

Augmented And Virtual Reality

The AR and VR technology has helped in improving the user experience. Through the use of AR/VR technology, picture clarity can be improved upto a great extent.

This will help to enhance the audience viewing experience and keep them indulged with your platform for a longer time duration. These days movies are available in 3D modes making the viewers feel connected with the storyline.

Machine Learning

The machine learning algorithm is used to understand customers assumptions and content preferences. The algorithm can be used for predicting the changing trends in the entertainment industry.

It is very helpful for businesses operating in the entertainment industry to improve their services and products per customer preferences.

IoT(Internet Of Things)

The IoT is a powerful technology for accelerating your business growth and helps media and entertainment businesses to equip their business with valuable data and insights. This will help your business to know your customers well. It will help you in making personalizations and add innovation to your content.

From blockchain app development to metaverse development RisingMax Inc. is capable of fulfilling your business requirements with its featured-rich solutions for multiple industry domains.

THREATS & RISKS:

While the entertainment industry has quickly increased its use of online infrastructure to create, market, distribute, and sell intellectual property, it is behind the curve on cyber security. Media and entertainment companies can respond slowly to cyber incidents compared to businesses making up critical infrastructure in highly-regulated sectors, such as finance and healthcare. This lack of preparation can cost dearly financially, legally, and in terms of reputation.

Cyber Risks in the Entertainment Industry

Some of the top cyber risks threatening entertainment companies are industry-specific. However, many cyber threats affecting entertainment businesses are common to other businesses.

As is often the case, cybercrimes affecting the entertainment industry are largely financially motivated. Whatever the reason and source behind the cybercrime, entertainment companies often find themselves on the back foot when faced with a cyber attack.

One case is when cybercriminals hacked Disney+ accounts the moment Disney launched its online service, demonstrating how ill-prepared for a cyber incident they were and how organized hackers were by comparison.

Disney was neither prepared for the vast number of people demanding access to popular shows nor for the simultaneous data breach in which hackers changed many users passwords and sold or offered the hijacked accounts for free on the dark web. Customers severely criticized the company on social media, causing reputational damage that cannot be measured in lost revenue but can do lasting harm to a business.

The first step for entertainment businesses to protect themselves and their customers from cyber attacks is to understand the cyber risks most relevant to these businesses. Then they can strategize to build long-lasting, robust businesses people can enjoy and trust.

Web Portals and Data Theft

With its move to using more online portals and streaming services, the entertainment industry asks consumers to set up accounts and enter sensitive data on their websites, including credit card details and dates of birth.

Streaming and ticket sales are examples of the entertainment industrys increasing internet use and, therefore, entertainment companies growing attack surfaces. These use cases expose the industry to more potential attacks where cybercriminals seek clients personal data. Among other techniques, cybercriminals may achieve unauthorized access to financial details through phishing schemes, attacks on the businesss servers, or malware applied to web portals.

Malware

As entertainment businesses cater to customers with the modern online customer experiences they expect, they add to their vulnerabilities. Cyber security threats online include using malware such as key loggers or spyware with which hackers can determine the access credentials of customers or staff.

Hackers may then use this stolen information to achieve unauthorized access to restricted areas, to add credibility to phishing attempts, or to sell the information on the dark web.

Ransomware

This specific kind of malware is on the increase in all industries. Its a significant risk for the entertainment industry because, as well as causing massive disruption, it also risks lost reputation and stolen intellectual property, which are crucial for media companies.

Third-Party and Supply Chain Risks

Media and entertainment supply chains have many moving parts. This includes a long list of vendors and other third parties that can pose significant security risks for entertainment businesses. A disruption to a long-tail supply chain like that of the entertainment industry can cause ripples far and wide.

Remote Working

The COVID-19 pandemic pushed many businesses into rapidly adopting remote working practices, but entertainment organizations often have an especially large number of people working remotely, especially creators.

Remote working creates many cyber security issues because it means unvetted personal devices accessing business networks. Unsecured or poorly secured endpoints, such as personal mobile phones and Internet of Things (IoT) devices, are vectors for malware infections and data breaches.

Leaked Content and Movie Pirating

Movie and TV businesses are particular targets for cybercriminals seeking to access unreleased content. They can distribute this, either for money or for free, on the internet via file-sharing servers. Cybercriminals may use phishing and spear phishing attempts, tricking staff into revealing their access credentials and allowing them to access restricted areas and release pirated content.

In 2017, a data breach at HBO led to many unreleased episodes being leaked, including episodes of Game of Thrones. Also in 2017, the Dark Overlord group released episodes of Orange is the New Black, despite receiving a $50,000 ransom payment.

Even if malicious threat actors dont access unreleased content immediately, they can use illicitly gained access credentials to enter an unsegmented network and move laterally. On encountering other pass worded systems, guessing or using bots may give them access to more sensitive and valuable information.

Entertainment content is also sometimes leaked by insiders. While not all these leaks are malicious, insider threat is a significant risk because they have privileged access to post-production processes of multi-million dollar movies and other valuable and desirable intellectual property.

Sabotage or Hacktivism

In 2015, a hack of Sony Pictures Entertainment was linked to malicious threat actors in North Korea. The hack caused about 100 terabytes of data to be erased and compromised sensitive data, including celebrity earning figures, social security numbers, and unreleased content.

The target was "The Interview," an alternate-history movie about an assassination attempt on North Korean leader Kim Jong-un. The hack was linked to North Korea, demonstrating that hacktivism can be state-sponsored to limit access to controversial political messages in movies and music.

Leaked High-Profile Emails

Having personally identifiable information (PII) and personal details compromised can be devastating. Combined with celebrity status and high-profile content associated with popular figures or leading brands, the stakes can be far greater, as can the potential harm to individuals and businesses.

Extortion

In addition to hacktivists making political statements, ransomware and threats to release sensitive information on public figures abound. Money is the typical motivation for such attacks.

The entertainment industry comprises numerous multi-billion dollar businesses and wealthy, high-profile figures who would wish to preserve their brand images and reputations. Consequently, there is no shortage of people for cybercriminals to attempt to manipulate and intimidate with well-placed and varied ransomware attacks.

Social Media Breaches

Celebrities and entertainment companies are increasingly using social media to engage their audiences. However, this provides another attack vector via which hackers can cause disruption.

Hackers can hijack social media accounts of high-profile individuals with many followers and use them to spread malware, fake news, or inappropriate and damaging content. Attacking the followers of famous people on social media can be a successful strategy for hackers, so hijacked accounts and subsequent social engineering activities are major risks.

Because entertainment businesses and celebrities invest a lot of time and money in controlling their brand image via social media, an attack here can damage their credibility.

SECURITY SOLUTIONS FOR THE ENTERTAINMENT INDUSTRY

Fortunately for the entertainment industry, the C-suite is taking cyber threats seriously. This is good news because the impact and frequency of cyber attacks are increasing.

There are practical ways that entertainment businesses can improve their security postures by employing a cyber security strategy that:

Assess and address immediate needs Remediate cyber risks and vulnerabilities

Ensure future data protection through robust information security policies and procedures and regular testing

Risk Management

An excellent risk management process is the starting point for improving any businesss cyber security.

Through the component practices of risk management, an entertainment business will understand cyber risks that affect the industry, define its security posture within that cyber threat landscape, and then prioritize the protection of its assets according to the likelihood of various cyber incidents occurring and the potential damage of each.

Cyber security Training and Awareness

A businesss people can be a vulnerability or a key part of its cyber defense. Its always best to have people engaged in cyber security issues and invested in their remediation.

Entertainment businesses can vastly reduce their risk of data breaches or content leaks if they prioritize cyber security awareness and training. Training initiatives are best implemented during on boarding and should continue throughout the employee lifecycle with regular training, seminars, information, and incentives.

Most of all, cyber security training for entertainment businesses should cover the following:

I. Phishing

Without awareness training, entertainment industry workers are more vulnerable to various phishing attempts. Knowing how to identify spam and who to contact regarding suspicious communications can save organizations vast sums of money, time, and lost intellectual property.

II. Password Hygiene

Training staff and encouraging consumers to maintain secure, unique passwords that are hard to crack is a great investment. Password hygiene includes not sharing passwords with colleagues and updating them periodically.

III. Not Using Unsecure Wi-Fi Networks

With many remote workers in entertainment, its worth training staff about the dangers of using public Wi-Fi and the importance of using secure, encrypted connections to protect data.

IV. Endpoint Security

Entertainment companies can help ensure data security by prioritizing endpoint security. With so many people involved in creative industries, often working remotely, ensuring that there is a minimum standard required will be helpful.

V. Vulnerability Patching

Cybercriminals are always on the lookout for hardware and software vulnerabilities to exploit. If a business has neglected to prioritize cyber security, it likely lacks the hardware and software updates that would remediate vulnerabilities.

Patching needs to be a documented policy and regular procedure throughout businesses in the entertainment industry, including personal devices used for work, whether or not they ever connect directly to the business network. To be proactive, businesses can use ethical hacking techniques and penetration testing to find vulnerabilities in IT infrastructure and remediate them before hackers can exploit them.

VI. Third-Party Vendor Management

No business works in isolation. Entertainment businesses rely on multiple third-party vendors for the product or service life cycles, whether taking a console game from concept to the consumer or using a payment processor to handle credit card details in ticket sales.

Monitoring a business can be challenging. Monitoring a third party has further potential obstacles. However, businesses need to understand that their attack surfaces extend to their vendors, so monitoring them regularly in as part of broader Vendor Risk Management strategy is imperative to ensure data security.

Defining and documenting minimum contractual standards will help businesses work only with vendors prioritizing cyber security and maintaining security to an appropriate standard.

VII. Continuous Monitoring

Continuous monitoring can prevent attacks that are common in the entertainment industry, including distributed denial of service attacks and the theft of digital assets and intellectual property. A continuous monitoring system can also keep track of employees to prevent or mitigate leaks from insiders, malicious or otherwise.

VIII. Access Management

The movie, music, and gaming industries are at particular risk from leaks of unreleased content. They and other businesses can reduce this risk by severely limiting access to post-production content. While many people are required to create content, they dont all need access once their role is complete. Strict, monitored access control can help businesses avoid accidental and malicious leaks.

Access control can also help forensic investigators determine when and how a data breach occurred.

IX. Multi-Factor Authentication (MFA)

A system that requires two or more authentication methods makes it harder for hackers to hijack accounts. MFA should be a factor in internal and client-facing systems. Its a quick way for most businesses to enhance data security dramatically.

X. Encryption

If content or other digital assets are intercepted or stolen from a hard drive or cloud storage, encryption makes it much harder for the cybercriminal to view the data. Because of the value of entertainment industry digital assets, they should all be encrypted where possible, in transit and at rest.

XI. Backups

A backup system is essential for all businesses but might be prioritized for entertainment businesses, where digital assets can be incredibly valuable and targeted by cybercriminals.

The loss of intellectual property and digital content via data breaches and ransomware can be devastating. Backups are critical to minimizing business disruption and protecting intellectual property.

To ensure that a business can get back on its feet after a cyber attack or geographically specific disaster, such as a power outage, its a good idea to store a copy of critical files away from the primary data center.

Using cloud services introduces risk because the entertainment business must vet the cloud service provider, but the advantage is that backups can then be restored at any time from any location.

XII. Incident Response Plan

Businesses with an incident response plan are more prepared for cyber incidents and can respond more quickly, minimizing business disruption, data loss, and reputation loss.

An incident response plan is a document that covers various cyber incidents, from the most likely and impactful to the least. It should explain who comprises the incident response team, their roles, and their responsibilities. Nonetheless, it should be written so anyone reading it can understand and follow the steps for dealing with each cyber incident.

An effective incident response plan requires rehearsal and regular updates to ensure it is always relevant to the evolving business and the rapidly changing cyber threat landscape in which it exists.

The above ‘Management Discussion and Analysis Report is a forward looking Statement based on the Companys projections, estimates, expectations and perceptions within the meaning of applicable Securities Law and Regulations. These statements reflect the Companys current views with respect to the future events and are subject to risks and uncertainties. Actual results may vary materially from those projected here. Significant factors that could make a difference to the Companys operations include domestic and international economic conditions, changes in Government regulations, tax regimes and other statutes.

CAUTIONARY STATEMENTS:

Certain statements in the MDA section concerning future prospects may be forward-looking statements which involve a number of underlying identified / non identified risks and uncertainties that could cause actual results to differ materially. In addition to the changes in the macro-environment, the CoVID-19 pandemic may pose unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to the Company and the environment in which it operates. These forward-looking statements represent only the Companys current intentions, beliefs or expectations, and any forward- looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

DISCLAIMER:

All data used in the MDAR have been primarily based on publicly available sources, and discrepancies, if any, are incidental and unintentional.