Shemaroo's broadcast business to reach profitability in one to two years: COO Arghya Chakravarty

The 60-year-old brand is on a transformational journey, aiming to become a more youthful brand and attracting diverse talent. 

Shemaroo Entertainment has been on a transformational journey for the last two years. It is now attracting more diverse talent and is working on becoming a more youthful brand. As part of this transformation, it even launched a new website last month. This cycle of change was set into motion after Arghya Chakravarty took over the reins in July 2022. 

“Personally, I consider it an achievement to have dramatically changed the face of the organisation in terms of leadership at various levels. The company is very different now, not just in the experience and quality of the team but also in diversity and talent,” says Chakravarty, COO, Shemaroo Entertainment.

Firstly, the organisation has been restructured to streamline operations and group related business lines into more efficient categories. For example, previously separate lines on YouTube, Facebook, and other platforms are now under one digital video team. This restructuring extends across all teams. 

Second, it has infused the company with new talent. “Of our 12-member executive committee, seven have joined in the last year and a half, bringing fresh perspectives to our 60-year-old company. Alongside long-standing members, this blend of experience and new talent is crucial,” he says.

It has also launched initiatives like the Shemaroo Leadership Club to develop a second layer of leadership. This club focuses on training and grooming potential future leaders, with a flexible membership that can be refreshed annually. 

Further, the company has initiated several projects to refresh Shemaroo's image and transform it into a youthful brand. This includes launching a young and vibrant new website. It is also planning brand campaigns to engage with young consumers through campuses and other channels. 

“Our strong presence on platforms like YouTube, where we rank highly in terms of subscribers, gives us a unique opportunity to present a more youthful brand. Transitioning to a B2C focus allows us to connect more directly with consumers. However, changing a brand's image to a youthful one is a long process, and we expect it will take at least one to two years to fully achieve our goals,” he says.

Shemaroo’s Broadcast business

Apart from its syndication and distribution business, Shemaroo is in two major B2C businesses- broadcast and OTT streaming. Over the last two years, Chakravarty’s vision with regard to its broadcast business is to establish a dominant presence in the Hindi-speaking markets (HSM). It aims to dominate the Free Dish space in HSM and diversify its channel portfolio.

Currently, Shemaroo has three Hindi channels, that include two GEC channels Shemaroo Umang, Shemaroo TV and a youth channel called Chumbak TV, along with a Marathi channel Shemaroo MarathiBana (which has recently moved to pay and is no longer on Free Dish).

“Our plan for the next couple of years is to consolidate these four channels and explore potential expansions in both the Hindi and regional markets,” he says.

The broadcast business is still not profitable. Chakravarty expects to reach profitability in the next one to two years. However, as it may continue launching new channels, this timeline could shift. He anticipates ongoing investments in the broadcast business for the next two to three years. 

“Evaluating our profitability now wouldn't be accurate, as we're still just two and a half years into this venture. A better assessment would be in five or six years when we have a steady lineup of established channels,” he says. 

Chakravarty stresses on relevance more than profitability. “We are now the second-largest player in the Free Dish space for Hindi General Entertainment Channels (GECs), behind Dangal, which has been around longer. Our relevance continues to increase, and we aim to be more than just another broadcaster; we want to be significant in the industry,” he adds.

Streaming Business

In the digital streaming space, Shemaroo has a Gujarati OTT platform ShemarooMe. Its goal is to be a dominant player in the Gujarati space through this platform. While it is seeing growth in both subscribers and revenue, it is careful about its cash burn. 

“We're taking measured steps in our growth, avoiding excessive spending to acquire subscribers. The subscription numbers are experiencing strong double-digit growth. However, we're keeping it controlled to avoid increasing cash burn. The growth rate of subscribers is healthy, but we're managing it carefully,” he says.

While establishing itself as a strong player in the Gujarati market, it is also creating Shemaroo Originals in Hindi. It plans to release eight to nine originals this year, in addition to new Gujarati movies. These Originals are included as part of the subscription plan, alongside Gujarati content. While these offerings cater to different audiences, they are accessible to all subscribers under the same package.

Chakravarty is clear that it doesn’t intend to enter the crowded Hindi OTT market with these Originals. Its main focus remains on Gujarati films, including top new releases, original web series, and plays. 

“Overall, we're positioning ShemarooMe as a significant brand vehicle for the company, focusing on relevance in the OTT space while managing growth ambitions with controlled spending," he says. 

Currently, the platform’s focus is entirely on SVoD, with only a small presence in AVoD. However, with many large streaming apps using a mix of AVoD and SVoD, Chakravarty says Shemaroo may also explore that in the future. 

ShemarooVerse

In December 2023, Shemaroo Entertainment introduced ShemarooVerse, a public metaverse platform. It is a digital universe where entertainment seamlessly integrates with Web3 and AI. More recently, it announced a partnership with GMetri, an AI-powered immersive learning and game development company. With this, it entered into the realm of immersive AI gaming. It introduced IP-based games which leverage the power of AI and allow fans to experience immersive games in the metaverse. The launch features games based on popular Bollywood films owned by Shemaroo Entertainment, such as Jab We Met, Golmaal, Disco Dancer, Amar Akbar Anthony and more, offering fans a new, interactive way to connect with their favourite movies and characters. 

Chakravarty says the company has been involved in the metaverse and Web3 space for the past one and a half years to stay future-ready. While the potential of the metaverse for entertainment hasn't fully materialised yet, he believes it will in the next year or two. Its investment in the metaverse is a strategic investment for the future.

“We've already built our 'Shemaroo Verse' and partnered with various blockchain companies. We don’t know exactly how the space will evolve, but we’re prepared to scale up as needed. We’ll invest based on anticipated returns, and our focus now is to be ready for when the market opens up, ensuring we can act quickly when the time comes,” he says.