BackShemaroo to invest Rs100 cr for content acquisition
Shemaroo to invest Rs100 cr for content acquisition
PremiumNew Delhi: Production and distribution house Shemaroo Entertainment plans to invest around Rs100 crore over the next two years for acquisition and aggregation of content.
“We are looking at aggregation and acquisition of content and will invest Rs100 crore for this in the next 18-24 months," Shemaroo Entertainment director Hiren Gada said.
This would be across the media, overseas rights, TV and literature, he added.
Shemaroo acquires, on an average, about 200 titles a year. “We are looking at similar figures in the future also," he said.
This investment is part of a Rs200 crore expansion plan announced last year by the company for increasing its operations across various verticals of film and video business.
Gada said the rest of the amount would be spent on production (Rs90 crore) and infrastructure (Rs10 crore).
“We are sourcing the funds through equity and debt. While 25% of the debt has already been funded, we have postponed equity funding because of the market condition," he said, adding that it would look at the equity option as soon as market stabilises.
Shemaroo, which has 25% market share in Hindi film home video segment, is also looking at garnering business from other verticals like DTH and mobile platform.
“We are in discussion with DTH players for providing content under the pay-per-view model. We are also providing content to mobile operators in the form of clips. With the coming in of 3G, this segment is bound to grow," Gada said.
“In the next 3-4 years, we expect these (new) verticals to contribute about 25% share of the company’s revenues from miniscule levels today," he added.
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