Shares of Digikore Studios surged 10% as it unveiled its Metaverse for film and TV. The cloud-based marketplace aims to improve filmmaking, sparking a 50% return for shareholders in three months.
With a market cap of Rs. 339 crore (around $40 million), the company‘s shares hit a fresh 52-week high at Rs. 544.95 (about $6.5). The company announced in an exchange filing that it would soon launch the World’s Cloud-based Marketplace of Virtual Production Sets, which sparked a bullish movement in the share price.
Carefully crafted over 16 months, this platform aims to provide filmmakers with hitherto unheard-of opportunities.
Stock hits 10% upper circuit after launching world’s first Metaverse for Film and Television Industry https://t.co/QzVyIkEwNE pic.twitter.com/KJXRYfbLI1
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The metaverse platform
The platform intends to change immersion and realism for both actors and audiences by facilitating a seamless integration of physical props and actors into virtual environments through the use of advanced technology.
Additionally, Digikore aims for substantial revenue growth. The possibility to rent out virtual production sets for a fraction of the price of making custom virtual production sets has the potential to generate annual revenues ranging from US $10 million at the lower end to US $200 million at the higher end in two to four years.
📌 Digikore Studios informed the exchange about the forthcoming launch of the World's First Cloud-based Marketplace of Virtual Production Sets. The platform aims to redefine filmmaking worldwide by democratizing access to high-quality virtual sets, offering opportunities for… pic.twitter.com/o5CjQHr9NE
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When considering the revenue contribution of the company, it receives 69 percent of its revenue from North America, 15 percent from Europe, and the remaining 16 percent from the rest of the world.
Digikore Studios has created a marketplace-model metaverse of virtual filming locations that will be used by filmmakers and photographers worldwide. This platform will replace green screens with virtual locations on LED screens, thus helping filmmakers and photographers shoot in real-time at a low cost.
According to the company’s financial statements, revenue increased by 34 percent from Rs. 24.88 crore during FY21–22 to Rs. 34.44 crore ($4 million) in FY22–23. Also, the net profits multiplied by 830 percent from Rs. 47 lakhs ($57,000) to Rs. 4.37 crores ($527,000) during the same period.
Empowering creators
The Managing Director of Digikore Studios, Abhishek More, pointed out the significance of the launch, stating that with over 13 years of experience in visual effects, they are proud to announce that Digikore has emerged as a global leader in virtual production, unveiling their marketplace model, Metaverse, tailored for the film, television, and advertising industries.
He added that the platform boasts thousands of virtual locations spanning from monuments to sci-fi realms, empowering filmmakers and photographers with unparalleled creative freedom. Also, he stated that with their platform, Digikore will become the first company in the world to produce visual effects. A company can secure long-term recurring revenue for itself by productizing its service and offering it on a SaaS model.
In 2022, Digikore Studios began producing content for OTT networks in India and abroad and plans to produce more than 400 episodes annually, generating more than Rs 120 crore in revenue by 2026.
Founded in 2000, Digikore Studios is a Mumbai-based company. The company provides visual effects (VFX) services for commercials, TV shows, web series, movies, and documentaries.
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