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Key Positives |
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Key Negatives |
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With the demand from television channels burgeoning, both television content providers as well as film producers such as Mukta Arts are commanding a good price for their content.
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The dogfight among channels has led to burgeoning costs of production. The primary contenders viz. Star, Sony and Zee have all ramped up annual production budgets to nearly Rs 1.7bn to Rs 2 bn. This is bound to put further pressure on the bottomlines.
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The changes in the regulatory framework, which have allowed broadcasters to uplink from India, will allow them to tap into local advertising. This could almost double the advertising market for broadcasters.
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The working capital cycle for most content providers is far too stretched (almost four to six months) putting pressure on their cash flows.
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Animation continues to remain an attractive business for Indian companies. The difference in the cost of executing animation jobs between US studios and their Indian counterparts is expected to drive turnover and profits of Indian animation majors, for the foreseeable future.
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The revenue model for the cable and satellite companies is still skewed in favour of cable companies.
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Advertising spends of FMCG majors could slow down in the coming year
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