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City Pulse Multiplex Ltd.

BSE: 542727 Sector: Media
NSE: N.A. ISIN Code: INE056001014
BSE 00:00 | 12 Jul City Pulse Multiplex Ltd
NSE 05:30 | 01 Jan City Pulse Multiplex Ltd
OPEN 35.10
PREVIOUS CLOSE 36.90
VOLUME 4000
52-Week high 75.95
52-Week low 24.70
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 35.10
CLOSE 36.90
VOLUME 4000
52-Week high 75.95
52-Week low 24.70
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

City Pulse Multiplex Ltd. (CITYPULSEMULTI) - Chairman Speech

Company chairman speech

Dear Stakeholders

Primarily I personally thank all of my stakeholders associates and Advisors forbeing with us standing during these hard times.

"Keep your face to the sunshine and you cannot see a shadow" Positivethinking will let you do everything better than negative thinking will; is what I havealways believed in.

I consider all of my stakeholders as my family and believe that it is only the familywho stands by in tough times as you all did and will always do.

These hard times have thought us many things; prime is flexibility and accepting thechange. The era is shifting towards digital age as we often see in sci-fi movies. This isthe right time to take a step ahead and jump into the opportunities and have theadvantage. We at City Pulse being in entertainment industry always look forward to serveour stakeholders with best-in-class entertainment supported by latest and advancedtechnology for best experience.

To align my above thoughts with reality I and my team have been constantly making athorough research in our industry to crave out what next and how to implement it. Few ofour observations and analysis are presented below.

The Indian Media and Entertainment (M&E) industry has made significant strides andcontributed significantly to the country's economic growth. (M&E) industry is in atransformation phase as both old and new continues to coexist. Interactivitydigitization multiple-platforms multiple-devices and globalization of services basedlandscape has remodeled the media and entertainment vertical over the last decade. SocialMedia Mobility Analytics and Cloud Computing (SMAC) the new generation in technology& globalization is now the next wave catalyst of change for the industry.

A surge in content consumption has been observed as digital infrastructure quantum ofcontent produced and per-capita income improved substantially in 2020. The digital mediasector grew by almost 9% to reach INR 1.82 trillion (US$25.7 billion) during the year.While television and print retained its position as the two largest segments in theM&E sector digital media became the third largest segment in the M&E sector.

For entertainment and media Companies the past 18 months have been a period ofremarkable uncertainty and challenge. The well-known forces that were changing ourWorld—digitization globalization disruption shifting consumer habits anddemographics—were amplified by a powerful new one the first global pandemic in acentury.

Overview of Indian Film Industry

'India's biggest cultural export' the Indian film industry is one of the mostprominent forms of entertainment in India and it's the passion for films that helped Indiaemerge as the largest film producer in the world. The Indian film industry today is amultimillion-dollar industry employing over 6 million workers with over a billion viewersspread across the globe.

Producing more than 75000 films in more than 30 different languages and dialects since1931 the Indian film industry today is the largest producer of films globally in terms ofthe number of films produced and also the biggest in the world in terms of ticket sales.Contributing nearly 40% to the overall revenue mix Bollywood dominates the Indian filmindustry while regional and international films contribute the remaining 50% and 7%respectively. India is currently the biggest cinema market in the world and in 2019 itrecorded a 9.5% growth to reach H 191 billion despite the downturn in the global and theIndian economy.

Year-on-year growth of the Indian film industry (Rs. in billion)

2018 2019 2020E 2022 E
Domestic Theatricals 102.1 115.2 126.7 146.4
Oversea s Theatricals 30 27 25 30
Broadcast Rights 21.2 22.1 23.2 25.5
DigitaL/OTT Rights 13.5 19 23.8 32.8
In-cinema Advertising 7.5 7.7 0 8.9
Home Video 0.2 0.1 0.1 0.0
Total 1745 191 206.7 243.6

The domestic theatrical market grossed H 115 billion in 2019 compared to H 102 billionin 2018. The total GBOC collection of H 49.5 billion in 2019 was the highest evercollection for Hindi theatricals at the box office. The Hindi film industry contributedapproximately 43% of the GBOC despite comprising only 14% of films released.

Overview of Digital Media Industry

With more than 661 million mobile broadband subscribers 395 million smartphone usersand 4 million connected smart TVs the Indian digital media industry continues to grow ata rapid pace. Spurred by growing content consumption increasing use of smartphonesclubbed with cheap data and over-the-top (OTT) video and audio demand India's digitalmedia industry clocked a growth of 31% to stand at Rs. 220.7 billion in year 2020.

The year 2020 is likely to be very challenging for the Indian film industry owing tothe unprecedented Covid-19 outbreak. Amidst long periods of lockdowns all major filmreleases have been stalled for an indefinite period and ongoing projects have beenshelved. For the first time in the history of Indian cinema this is likely to result inheavy financial losses for the industry and it is likely to record zero box-officecollection for the 1st quarter of FY21. Further with social distancing being the 'new'normal multiplexes are likely to witness reduced footfalls even after the lockdown isrevoked.

Due to the lockdown led by the outbreak of Covid-19 several film makers and contentcreators are expected to release films directly on OTT platforms and sell digital rightsthereby indicating growth in Direct to Digital market. The move is projected to bolstergrowth in demand for digital platforms as platforms can use exclusive movies to increasetheir subscriber base.

With a greater demand for personalized entertainment choices an enhanced demand foraudio or video streaming services (like Netflix YouTube and Amazon) delivered over theinternet have been noticed. The popularity of mobile computing devices also continue toincrease - leading to a disruption in the broadcast television era. It is also creatingmore opportunities for independent artists to leverage technology and reach a broaderaudience.

The most obvious and most global - drivers of change in E&M is the migration todigital consumption. As consumers stayed home and in-person venues shut down the use ofinhome digital services soared. The below table depicts the same:

As more and more people spend time at home during the pandemic there is a rapidmigration or move to Digital Content Services leads to adoption of OTT Platform by variousCompanies.

With the surge of Digital Media services technology and various different and advancedsystem in the economy and especially in Media and Entertainment Industry the industrywill accord a remarkable growth in the coming years.

To continue my discussion and moving towards conclusion I feel that Global Media andEntertainment Industry s likely to grow at CAGR of 4.3% to reach USD 2.6 trillion by Year2023. Taking a hint from recent OTT developments we too took a decision to enter into OTTsegment and are keen to present a state of art and user-friendly Platform for ourstakeholders very soon.

The Company has already launched its OTT Platform "WOWPLEX". The launchingwas done on 12th of July 2021 by honorable Shri Ajay Thakur CEO and Head ofBombay Stock Exchange SME and Startups.

Sincerely 6th August 2021
Arpit Mehta

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