Unistar Multimedia Ltd Management Discussions

Industry Overview

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. Indias media and entertainment industry are unique as compared to other markets. The industry is well known for its extremely high volumes and rising Average Revenue Per User (ARPU).

The M&E industry comprises businesses that produce, distribute and offer ancillary digital services and products for Motion Pictures, Video & Audio Recordings, Television Programmes and Commercials. It also includes Streaming Content, Music, Esports, Broadcast, Radio, and Text and Book Publishing Video Games sectors. The industry is backed by a shift in consumer preferences and change in demand supported by dynamic technology, innovation, and intense competition.

When the world was first hit by the Covid-19 pandemic, mediums like TV, movies, web series, and streaming videos became the major sources of entertainment, information and window to the outside world. This led to a massive increase in viewership, which, in turn, played an essential role in increasing the number of players in the M&E industry.

The M&E sector has witnessed a sharp recovery since the easing of Covid-19 restrictions in 2021-22 with the reopening of movie theatres and the resumption of travelling. Thereby helping add a positive start to the year. Further, changing consumer behaviour and advanced technologies, including broad band providers, network owners, and connected TV manufacturers, play crucial role in accelerating demand. The broadband will be taking steps to simplify and integrate tools across the platforms to improve user experience.

India is spending 82% of its time on mobile phone apps on media and entertainment. Indias Media & Entertainment industry is expected to grow to $34.62 Bn by 2025 at 10.5% CAGR, led by live events, Animation and VFX and online gaming. The mining industry relates to extracting various minerals and metals from the ground, either on the surface of the Earth or underground. Extracted gold and silver are commonly used to make jewelry or other precious goods. Numerous metals and minerals are also crucial in the production of various products you cannot imagine your life without. Copper is used in motors and electrical generators, radiators, air conditioners, radios, and TVs as a good electricity and heat conductor. Iron ore is used to produce steel. Aluminum is used in cans, foils, airplane parts, ships, kitchen utensils, power lines, and consumer electronics. Despite the move towards green energy in many countries, coal still accounts for about 40% of electricity produced around the world, thanks to its low cost. The real power capacity nearly doubled since the year 2000. With constantly increasing consumption, the mining industry is projected to grow further for many years and decades.

The software industry includes businesses for development, maintenance and publication of software that are using different business models, mainly either "license/maintenance based" (on-premises) or "Cloud based" (such as SaaS, PaaS, IaaS, MBaaS, MSaaS, DCaaS etc.). The industry also includes software services, such as training, documentation, and Consulting and data recovery. The software and computer services industry spends more than 11% of its net sales for Research & Development which is in comparison with other industries the second highest share after pharmaceuticals & biotechnology.

Key trends and drivers in the M&E industry include:

Digitalization: Shift to online platforms, streaming services, and social media.

Globalization: Increased global demand, international collaborations, and localization. Personalization: Tailored content, targeted advertising, and user-centric experiences. Technological advancements: AI, AR, VR, and 5G enabling new formats and experiences.

Changing consumer behavior: On-demand consumption, binge-watching, and social media influence.

Market Dynamics:

The Indian Media & Entertainment (M&E) sector is set for substantial growth hitting Rs. 3.08 trillion (US$ 37.2 billion) by 2026.

According to Media Partners Asias Asia Pacific Video & Broadband Industry 2024 report, Indias video market, encompassing both TV and digital, is projected to grow from $13 billion in 2023 to $17 billion by 2028. 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.

Robust Demands:

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 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.

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.

Opportunities and Threats

India to become a hub for film shooting, co-production, post-production, content and technology partners in film industry The Government of India has increased the FDI limit from 74% to 100% for M & E

Industry.

Macroeconomic uncertainty impacting decision making and prompting cost reduction initiatives Greater interest in using technology to drive business growth and differentiation Accelerated adoption of public cloud Greater acceptance of as-a-Service platforms ESG Norms, Decarbonization, Geopolitics, Low Productivity, Legacy Technology, Low per capita consumption, Logistics and Infrastructure are Challenges for Mining Industry. Demand for our entertainment services may be affected by changes in technology and consumer consumption trends. The entertainment industry is very competitive and constantly changing. Consumers now have more alternatives for accessing various forms of entertainment through new and existing distribution methods. Technological disruption leads to rapidly changing technologies, formats, and platforms. Evolving laws, regulations, and censorship affecting content creation and distribution. Piracy and copyright infringement leads to illegal sharing and distribution of content. Threat of shifts in consumer preferences, viewing habits, and platform usage.

Segment wise performance

At present, Unistar is positioned to be the quality content provider to various TV channels. Company is presently into Production of Motion Pictures. Production of television Software for Satellite, Cable, Terrestrial Broadcasters as a Content provider. Production of Video and release of Audio Albums. Producing Motivational/ Educational films for corporate.

Event Management Talent Management

Outlook

We continue to make concrete strategies to ensure the leverage of our leadership market position. We continue to create capabilities, infrastructure, content and platforms aligned to emerging consumer preferences and audience behavior.

Risks & Concern

New technologies are disrupting the traditional model of the industry. With an increase in OTT platforms, the rapid expansion of the industry brings uncertainty and a shift in the traditional model. The OTT platforms convenience and affordability, and unique content, are impacting the traditional industry. Customers now have a greater variety of alternatives available at their disposal. This makes customer retention a huge challenge since they always seek various options at affordable prices. The events taking place at the macro level, i.e., politics, law and regulations, or other external factors beyond the business control, might impact business operations. The economic risk refers to the danger of losing money on a foreign investment due to changes in business circumstances or the negative impact of macroeconomic variables such as Government policies or the fall of the existing government and substantial swings in currency fluctuations.

Performance of our Company

During the year under review, the Companys turnover is Rs. 4128.33 Lakhs and profit for the year Rs. 43.21 Lakhs.

Internal Control Systems

Your Company has in place adequate internal control systems commensurate with the size and nature of its business. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, applicable laws and regulations, safeguarding of assets and economical and efficient use of resources. The system is assessed periodically. The Internal Audit team continuously monitors the effectiveness of the internal control systems. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company

Financial Performance:

1. Share Capital:

The Paid up Share Capital of the Company as on 31st March, 2024 stands at Rs. 25,00,07,000/-divided into 2,50,00,700 equity shares of Rs.10/- each fully paid up.

2. Reserves and Surplus:

During the year under review this item is explained under the head “Reserve & surplus” forming part of the Balance Sheet, as mentioned in Note no. 09 of significant accounting policies and notes forming part of the financial statements.

3. Total Income:

During the year under consideration, total income is Rs. 4170.00 Lakh/-

Employee Relations

Company had smooth relations with its employees during the year under review.

Material Development in Human Resource

The Company continues to have excellent employee relations. Your Directors acknowledge and thank the employees for their continuous support. The Company has strong commitments to follow the best of the HR practices and believes in up-lifting the overall competence of its employees through regular training, workshops and seminars.