Generative AI has a long way to go before they can replace UX folks that do more creative work.
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âUnfortunately, however, Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems. The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.â
- Increased labour costs is a good sign for Phantom but the decline in customer projects is not.
âThere are rumours in the market that many films that were to go on floors have folded up.â
âRanbir Kapoor has only one film as does Salman Khan.â
âHrithik Roshan only has War 2 in hand.â
âRanveer Singh has no film on floors today.â
The sector does not seem to be in the pink of health, Tippett Studio got acquired, DNEG lays off people, Axis Scotland shuts down, rumours of Bollywood not doing great.
The demand for content surged during COVID, then came the strikes, studios suffer and wonder how itâs going to unfold in the coming months.
I was earlier an investor in Phantom and then switched to Basilic.
I think the reason why Basilic is getting higher PE is the same reason what made me switch.
A lof of investors here shrugged off Phantomâs decision to gamble on Ayalaan. But to me this was a very high degree of indiscipline. The fact that the management doubled down on their decision made me realize they donât see their mistake. They are not in the business of deciding what is âgood contentâ and shouldnât use their money to do so.
The second reason is the belief that Indian customers (studios) are unreliable pay masters vs foreign studios. Hence the company with higher exposure to foreign business is considered a better business.
I am not trying to reopen the debate on whether Phantomâs decision was good or not. I think everything that had to be said has been said by both sides. Just sharing why I give it a higher valuation personally.
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