Amagi Media expects to turn profitable soon
technology company Amagi Media Labs, which was last valued at $1.4 billion, is hoping to become profitable in the first half of 2024, the company's cofounder said. «We are just about a couple of months away from becoming profitable. We hope to become profitable in the first half of 2024,» Amagi Media Labs cofounder & CEO Baskar Subramanian told ET.
Amagi's growth rate has tapered as its revenue base has broadened, with annual recurring revenue (ARR) topping $100 million amidst global movement among broadcasters to shift from hardware to cloud-based distribution.
«We've been growing almost 100% a year over the last 3-4 years.
At $100 million ARR, you cannot do another 100% growth. We hope to grow by 30-40% going forward,» Subramanian added.
Amagi provides end-to-end, cloud-managed video infrastructure for TV and OTT. Globally, the company works with close to 400 TV networks, including NBC Universal and Warner Bros Discovery (WBD).
The Bengaluru-headquartered company gets 78% of its revenues from the US, followed by 15% from Europe.
Currently, revenue contributions from Asia and India are in the single digits.
However, Subramanian expects that to change in the coming years as Indian broadcasters shift from hardware to cloud-based content distribution, which may help companies save up to 40% in costs on average. «All major TV networks in India are developing cloud strategies. We are seeing the overall concept of consumer streaming content and ad-supported models evolve.
In 12 to 18 months, we foresee a lot of transformation taking place in India,» he noted. Every year, broadcasters worldwide spend up to $50 billion on technology upgrades. In the US, just 8% of channels are distributed through cloud-based playout,
. Read more on economictimes.indiatimes.com
