I made no comments about whether or not I’m going to invest in the company. Assuming such a thing and providing advice on that basis is unfair in my opinion. At this point, my research in the company is purely academic.
Nowhere in the thread is the issue with Vistaas Digital mentioned.
I did not doubt if the Shemaroo itself owned Divine content. They very well may. I doubted the integrity of the management which says they have invested in a company named “Vistaas Digital”, which supposedly sell all its content through Divine India, which is a non existent website. Even if the website was a mistake, why continue to show the Value of 10 Cr in the Balance Sheet specifically under that name itself?
@dineshssairam divine India may not necessarily be a website. There is a YouTube channel divine India, section in Amazon and iPhone app in AppStore called divine India.
Point well taken. However, you are raising valid concern and my limited suggestion was that in case you are not comfortable with the company and management, please do not invest. I feel, irrespective of whether you invest or not, that is generic advise. Also, I appreciate you point and apologise.
There are another couple of business like US Subsdiary and also company for distribution content in airlines. So rather then looking for each business, in my opinion, one need to understand that shemaroo in busniess of distribution of content digitally. There are various arrangement and association for same. Bringing Vistaas concern is valid, but have you read whole thread? I am yet to get answer on same. Had you said that I have read whole thread and raised specific query, it could have been different discussion.
I felt the language you use in previous message was bit harsh.
Having said that, your question on Vistass resulted in some work from my side. I am encloding same for benefit of all members.
So the concern of yours whether, the company deserve valaution of Rs 10 Cr or not is valid in my opinion. The company is reporting net loss which mean Shemaroo shall have write down the valuation in my opinion. Having said that, it would be good also to understand the otherside view point as well.
Thanks for bringing out valid concern. We may agree to disagree but I would still suggest careful choice of word. Hope this lead to more meaningful disucssion and better pespective about the company on the thread.
Sorry for the late response. I guess I’ve been misunderstood out for context. I didn’t say Shemaroo’s management is a fraud.
I mentioned that in case it’s found out that Divine India actually doesn’t exist, it won’t have any relation to understanding Shemaroo’s business. It would be related to Shemaroo’s management being unethical.
Once again, I’m actively tracking Shemaroo and trying to understand their business model. I was playing the Devil’s Advocate to that extent. I did not mean to slander.
“Gada also claimed that his upcoming application would be vastly different from Netflix in terms of both better online platform maintenance as well as imposing controlled spending on content. Shemaroo intends to increase its movie catalogue by at least 5% per year, and is thereby inclined to reach out and licence its library to other online platforms. Within the next 18 months, the library of Shemaroo Entertainment is expected to expand to such a great extent, that Hiren Gada is confirmed that they will be able to outsource their streaming platform in a monetized catalogue which will definitely ensure seamless streaming without any hitches.”
“Given the opportunities that exist in the market, we want to grow our revenue fivefold in five years,” Hiren Gada, the company’s chief executive officer, said in an interview in Mumbai. “The best way to play the digital boom is to offer services on all platforms in all forms.”
I think Managment is working in the right direction, as market demand for local & old content is huge, given the number of views they are getting on youtube, demand looks very robust but the problem with youtube is that ads revenue is shared 50-50 & shemaroo have no control/say in amount and type of Ads are being displayed.
So launching OTT service looks very good move and it looks low-risk high probability bet, if their app becomes successful they can further build on it and if it fails it won’t cost much as they are not paying for content, only app & basic infra cost which is very low these days.
Moreover, for start, I think it would be better to give the subscription-free app and better tie up with telecom & data service provider for revenue sharing also they can collect revenue from ad display.
the same kind of service is being offered by iflix.com, it very popular in Malaysia, Indonesia and middle eastern & other Muslim countries, they have tie up’s with all the major telecom player, and Telecom operators have special plans for iflix consumption.
Even in normal data bundle plan, some operator’s are giving iflix quota for free(whether customers want it or not, you will get the iflix specific quota) in order to promote the iflix, its very intelligent way of promoting the consumption, same can be easily done by shemaroo.
Disc: My views could be biased, Invested.
I love Valuations in general. And I love it more when I Value difficult-to-value companies such as this one. I hope I made logical decisions here. Comments, criticisms and feedback always welcome, either here or on the blog itself.