The surge in over-the-top (OTT) platforms after the coronavirus outbreak inadvertently breathed a new life into traditional theatrical experience, BookMyShow CEO Ashish Hemrajani has said, contradicting the widely held belief that streaming services are driving audience away from cinemas.
“OTT was predicted to sound the death knell for theatres but it's been quite the opposite," Hemrajani said during a fireside chat at the Startup Makakumbh in Delhi.
During the pandemic, a substantial investment went into OTT and content creation, which birthed a new generation of talent, including directors, screenwriters, musicians, who were now reaping the rewards of a theatrical release, he said.
“The entire creative capacity that was built for OTT is actually fuelling a whole new generation of theatrical. After pandemic, because OTT threw so much money at content, it created an entire new industry of creators, directors, screenwriters, musicians, who now get the real economic value coming out of a theatrical release,” Hemrajani said.
‘Building a fourth vertical’
Predominantly a ticketing online platform, BookMyShow (BMS) is looking to position live shows and events as a strong engine growth. Currently, 66 percent of the firm’s topline comes from ticket bookings. It also generates revenue from advertisements.
“We decided to jump into the live event space because we wanted to disrupt the space. We then created a media business for advertising and now we are starting a fourth leg which I don’t have the liberty to talk right now,” the CEO said.
According to reports, private equity firm KKR is in advance negotiations to infuse over Rs 2,000 crore (secondary share sale) in the firm for a minority stake.
Operated by Bigtree Entertainment, BMS has managed to register a turnaround since the lockdown after the industry came to a halt.
With the resurgence of people returning to theatres and a high demand for on-ground events, the Reliance and Accel-backed platform’s revenue from operations soared 3.5 times to Rs 976 crore in FY23, compared to Rs 277 crore in FY22.
It achieved its first-ever profit of Rs 85 crore against a loss of Rs 92 crore in the previous fiscal.
Income from live events touched Rs 237 crore in FY23, a substantial increase of 9.5 times.
‘Stop looking at unicorns’
The cofounder compared his company's resilience to that of a cockroach, emphasising their ability to survive tough times.
He urged people to stop chasing "unicorns," saying they're just mythical creatures.
“We weathered 25 years of challenges, including pandemics and financial crises. We were the first industry shutdown and the last to open. For two years (during pandemic) we had zero revenues, down to nothing,” he said.
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