We expect media/entertainment space to do very well: Prateek Agarwal, ASK Investment Manager

In a chat with ET Now, Prateek Agarwal, CIO, ASK Investment Manager, shares his views on the media/entertainment space. Excerpts:

ET Now: What is your current view on the media and entertainment space?

Prateek Agarwal: As of now, we are looking only at one company in the entertainment space; there is no clarity of rules in that space.

However, yes, media entertainment broadcast space is something we are positively inclined.

While advertisements continue to be buoyant and while they may take a breather for sometime, the tariff fees may actually go down over a period of time and subscription revenues will look up.

While one improves the cost structure quite a bit, the other gives long term stability and visibility to earnings. Hence, if overall, the volatility of earnings reduce, the discount rate that the market applies to future earnings would go down. That really is the reason why the space has been doing quite well and we expect it to continue to do well.