The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.” The invention of idiot box (Television) was a revolution in the media sector as the Indian families had got a serious source of entertainment to delight their free time. This had supported the Indian Film industry and TV soaps as they were able to keep people update about upcoming films and daily TV shows, which in turn advanced their quality and revenue. After the success story of television, Indian families turned for big screen in Cineplex and multiplexes in order to augment their status symbol and enjoy cinema on wide screen. Later, we know the success of PVR and Inox Leisure. As we are aware with the fact that the dual multiplex chain has earned a fortune for the investors, it has also supported food chain restaurants to vanish hunger of the people. Jubilant Foodworks and Westlife Development have delivered multi-fold returns. In wake of their performance, Burger King India has filed papers for fresh issue. However, the pandemic of Covid-19 has faded the flavor of multiplex chains in order to justice the 2-yard distance. This has elevated the demand of Over the Top (OTT) platforms among people for entertainment purposes and people are back on television.
Introduction of OTT platforms
If someone will scrutinize the U.S. equity markets for gauging the stocks that have outperformed the S&P 500 and NASDAQ, one will definitely find Netflix and Dominozz on pinnacle. Dominozz have surged from $40 to $400 while Netflix has touched $500 from $8 in eight years. Who would have thought that eating pizza while watching movie will make fortune for investors? The introduction of Over the Top (OTT) platforms has changed the media sector completely. Their quality content, user-friendly design and deployed machine learning which matches taste of the user with available contents has pushed their demand and subscriptions. Moreover, the ongoing pandemic of Covid-19 has forced people to stay at home and Work From Home facility has been advocated by various corporates, which has elevated the demand.
Watching Movies and Eating Simultaneously: The deadly duo
No decision other than watching movies and eating simultaneously in leisure time is any better. As people have started spending on subscription of OTT platforms heavily, they have also opted for organized food service market. The food retain industry has gained much traction in last decade after a shift in traditional pattern of Indian families from eating home-made food to food chain restaurants. The characteristics of this industry such as accounting transparency, continuous updation in their product offerings, less outlets penetration and organized operations with quality control promises a great future.
Investment in OTT Platforms and Food Retail Industry
The OTT platforms and food retail industry are knocking for a promising future. The ideology behind investing in these two story banks upon their cash-rich feature. The companies under both industries do not require any bill receivables due to their quick cash conversion cycle. The market of both sectors is not catered fully so they have much juice left which claims for rising Compounded Annual Growth Rate (CAGR) in upcoming years. Moreover, tech-savvy and Fast Moving Consumer Goods (FMCG) companies enjoy healthy Price-Earnings multiple in Indian equity market that makes them a strong bets to bet upon for long-term horizon.
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