ITV

Category: TV Channels

  • UTV Q1 revenue up 7% at Rs 523 million

    MUMBAI: UTV Software Communications Ltd. has posted a consolidated net profit of Rs 34 million for the quarter ended 30 June 2006, same as in the year-ago period.


    While revenue rose seven per cent to stand at Rs 523 million, operating profit was at Rs 46 million. The company has consolidated the financials of post production outfit United Entertainment Solutions Ltd (UESL), UTV-US, UTV-UK and UTV-Mauritius. The board of directors, in its meeting held today, have taken on record the un-audited consolidated financial results of the company and its subsidiaries.


    Commenting on the quarterly results, UTV CEO Ronnie Screwvala said, “The first quarter of the current fiscal has witnessed a marginal growth in revenues over the same quarter last year. This growth is largely driven by the new shows in the television and A&S segments and film revenues have largely remained flat as most of our releases for this fiscal are during the third and the fourth quarter. The margins of the company haven’t shown a corresponding increase mainly because the new shows introduced would take some time to mature in TV and airtime sales business. In our animation business, during past few quarters we have focused on overall scale by strengthening order book, moving up the value chain by entering into production of DVD and theatrical movies and expansion of facilities. These investments are expected to translate into higher revenues and margins going forward.”


    The UTV scrip shed 4.01 per cent to close today at Rs 167.35 in the BSE. Even in the NSE, it lost 4.23 per cent to end at Rs 167.60.

  • Post Hungama, UTV to plan for second stage of growth

    MUMBAI: UTV will be cash rich by Rs 2.36 billion as a fallout of the Walt Disney deal, allowing it to pursue movie and animation businesses on a large scale.


    The preferential allotment to Walt Disney of 14.9 per cent of the expanded equity capital at Rs 192.5 per share will fetch UTV an aggregate value of Rs 654.5 million ($14 million). Founder-promoter Ronnie Screwvala will contribute Rs 360 million as UTV issues him 1,949,360 warrants, which are convertible into one equity share each, at the same price.


    A further $29.3 million (Rs 1.35 billion) will trickle in from Walt Disney‘s buyout of Hungama TV, in a total deal size of $30.5 million with Screwvala getting $1.2 million for his 51 per cent holding in the Hindi kids channel.


    “The huge cash UTV will be sitting on will help us leverage funds for future expansion of the company. Once we set out exercising the synergies with Walt Disney, we can substantially scale up the movies and animation business,” says Screwvala.


    This line of optimism is making Screwvala protect his old stake in UTV. The issue of warrants will help him increase his shareholding in UTV from 42.38 per cent to 47.62 per cent before any issue of 3.4 million shares to Walt Disney. After alloting shares to Disney, Screwvala will hold around 44 per cent in UTV.


    Screwvala plans to use the fresh capital to wipe out UTV‘s debt of Rs 900 million. “We will become a zero debt company,” he says.


    So what will the master of deals take up as his next challenge? “UTV, which is currently at the helm of
    affairs in its specific business segments in the Indian media and entertainment industry, is poised for its second stage of growth. As the Disney investment consummates over the next few months, post regulatory approvals, I am positive that UTV will enter a new phase of growth and strengthen its multi-revenue integrated model.”


    On Screwvala‘s expansion plate is not just movies and animation but also new media content including gaming. Be prepared for acquisitions in this space. And Screwvala doesn‘t rule out the launch of niche channels. “We incubated and grew Vijay TV and Hungama TV before we sold out to News Corp and Walt Disney. We have the experience in the broadcasting space. With the emergence of digital platforms, there is scope to launch niche channels,” he says.


    Also Read:
    Walt Disney to buy out Hungama TV, take 15% stake in UTV

  • Star India to weave advertiser funded shows

    NEW DELHI: Having dominated the Indian satellite airwaves for over six years, Star India is rolling out more big ticket initiatives on the programming, marketing and new business fronts.

    And, like the legendary archer Arjuna, the company is only looking at the target: further domination of viewing space and upping its annual revenue, which has already seen a substantial jump (some say in the region of 20-30 per cent) in FY06 ended 30 June, beating industry growth rate.In FY07, with an eye on monetizing on-air popular properties, Star India has hit upon a plan, which it describes as advertiser funded shows.

    This would involve big advertisers getting a chance to have their products woven into the script and thus advertised by characters with whom millions of Indians identify — a bigger and refined version of in-film and in-serial placements of ads.

    This initiative will be kicked off from middle to end August beginning with Star Plus shows.
    “We are looking at long and strategic engagement with our clients as we don’t want to confine it to small incentives,” Star India president, ad sales and distribution, Paritosh Joshi pointed out, while explaining the rationale behind the advertiser funded shows.

    Though Joshi and marketing head Satya Raghavan were not ready to divulge further details on this, they admitted companies from various segments like automobiles, fast-moving consumer goods and telecommunication had evinced interest.

    This particular plan is most likely to be seen in channels like Star Plus, Channel [V], Star One and Star Vijay where the company has control over content creation.

    “In due course of time, our producers of shows will be informed of this move so that content can be intelligently scripted to have place for products,” Joshi said.

    As part of the gameplan for FY06, the Hindi blockbuster movies will be back on Star Plus with the charge being led by Aamir Khan-starrer neo-angst flick Rang De Basanti to coincide with India’s Independence Day on 15 August.

    The other big films include this year’s present biggest grosser Krrish, Bluffmaster, Taxi No. 9211, Amitabh bachchan-starrer Family, Chup Chup Ke and Prakash Jha’s take on the Bihar cottage industry called abduction-of-people-for-ransom Apaharan.

    After premiering on Star Plus, these movies will air on Star Gold, which, according to Raghavan, has established itself. Star Movies will bond with the best of thrills and frills via the entire series of Bond flicks.

    New shows on flagship channels Star Plus and Star One will include the epic Ramayan set in the future in Antariksh, Balaji’s Karam Apna Apna, Ektaa Kapoor-Smriti Irani joint production Thodi Si Zameen Thoda Sa Aasmaan, the adventures of an Indian Indiana Jones in Lucky, Balaji’s Kis Rishte Se and Sanjog.

    The approach for Star Plus for the coming year is simple: bring more stories with identifiable plots and characters that will hook the entire family and not any particular segment of the audience only.

    Then, of course, Star will roll out initiatives on the gaming and Internet front too to take interactivity a notch higher than what is presently seen on Star channels, says Raghavan.

  • Zee Telefilms board approves demerger proposals

    Zee Telefilms board approves demerger proposals

    MUMBAI:Zee Telefilms Ltd has informed the Bombay Stock Exchange (BSE) that the members at the two Court Convened General Meeting Meetings & one Extra Ordinary General Meeting of the Company held today, have approved the demerger proposals of the company. These include:

    1. Scheme of arrangement between Zee Teleflims Ltd, Zee News Ltd, Siti Cable Network Ltd, Wire and Wireless (India) Ltd and their respective shareholders made under the provisions of Sections 391 to 394 read with sections 78, 100 to 103 and other applicable provisions of the Companies Act, 1956 for the proposed de-merger of news business undertaking of the company in favor of Zee News Ltd and cable business undertakings of the company and Siti Cable Network Ltd, the wholly owned subsidiary of the company, in favor of Wire and Wireless (India) Ltd;

    2. Scheme of arrangement between Zee Telefilms Ltd, Siti Cable Network Ltd, New Era Entertainment Network Ltd, ASC Enterprises Ltd and their respective shareholders made under the provisions of Sections 391 to 394 read with Sections 78, 100 to 103 and other applicable provisions of the Companies Act, 1956, for the proposed de-merger of direct consumer services business undertaking of the company in favor of ASC Enterprises Ltd and Merger of Siti Cable Network Ltd and New Entertainment Network Ltd, wholly owned subsidiaries of the company, with ASC Enterprises Ltd; subject to necessary approvals of Hon’ble High Court of Judicature at Bombay and / or Delhi and such other authority as may be required.

    3. Utilization of balance in securities premium account of the company as on appointed date(s), pursuant to provisions of sections 78, 100 to 103 of the Companies Act, 1956, to the extent required, to adjust deficit arising out of transfer of net assets, cancellation of investment / loans / advances / Inter Corporate Deposit and appreciation or diminution in value of assets, fixed or current and investments of the company, if any.

  • Sri Lanka amends levy on foreign television content

    Sri Lanka amends levy on foreign television content

    MUMBAI: Sri Lanka government has amended the commercial levy imposed on foreign television content, including teledramas, films and advertisements. The government has also decided to form a national media policy to regulate content aired on local television channels.

    As per the new rate card, the tax for 30 minutes or less block of English language imported teledramas and films have been reduced to Rs 10,000 from Rs 75,000. The tax for the programmes of the other languages of 30 minutes will be Rs 75,000. The levy for the imported programmes dubbed into a local language is Rs 90,000 per a 30 minute or less block. The tax reductions have come into effect from 24 July.

    The tax amendment was reached in a meeting held between the president of Sri Lanka and the heads of private television channels, heads of the advertising firms, artistes and the officials of the treasury and the ministry of media and information.

  • Inox Leisure Q1 net doubles to Rs 83.7 million

    Inox Leisure Q1 net doubles to Rs 83.7 million

    MUMBAI: Inox Leisure Ltd’s net profit has more than doubled to stand at Rs 83.7 million for the quarter ended 30 June 2006, as compared to Rs 40.8 million in the corresponding quarter of the previous year.

    Total income was at Rs 40.53 million as against Rs 22.57 million during this period. Inox has launched two new properties, Inox Darjeeling and Inox Kota, to take its tally up to 41 screens in 11 multiplexes across 10 cities. In June, Inox also entered into a term sheet for an all share swap deal with Calcutta Cinema Private Limited (CCPL) for acquiring CCPL and its brand of multiplexes – ‘89 Cinemas.’

    Inox plans to take its screen count up to 108 screens by mid-2008, spread across 26 multiplexes in 18 cities. Inox Nagpur with three screens and Inox Chennai with five screens are scheduled to open in August and September 2006 respectively.

  • TV18 net up 65% at Rs 138.21 million

    TV18 net up 65% at Rs 138.21 million

    MUMBAI: Television Eighteen’s consolidated net profit has shot up 65 per cent to Rs 138.21 million for the first quarter of this fiscal, as against Rs 83.51 in the year-ago period.

    TV18’s revenue has also seen a 55 per cent jump to stand at Rs 416.07 million. In the first quarter of FY06, the company’s turnover was Rs 269.17 million. Early this year, TV18 had picked up a stake in Jagran TV, the managers of the Hindi news channel –Channel7.

    Revenue from news operations rose to Rs 364.52 million, from Rs 257.31 million a year ago. TV18’s internet business has crossed $1 million during this quarter. The new media assets include the recent acquistion of jobstreet.com (Indian arm). The group plans to hive off its internet business this year.

    TV18’s operating profit has gone up 57 per cent to Rs 213.76 million, up from Rs 136.45 million. The company has maintained an operating margin of over 50 per cent.

    TV18’s restructuring scheme, which would make it compliant with the uplinking guidelines laid down by the government, has been approved by Delhi High Court.

    “Our revenues continue to show robust growth and we expect to benefit significantly from the increase in distribution platforms for our services – via DTH, broadband, digital cable and mobile,” Television Eighteen MD Raghav Bahl says:

  • CAS: MSOs at odds over carriage, basic tier fee sharing

    CAS: MSOs at odds over carriage, basic tier fee sharing

    NEW DELHI: MSOs are divided on the issue whether carriage fee is retained by them and the basic tier fee of cable channels by local cable operators.

    While the Hinduja-owned IndusInd Media and Communications and Siti Cable (now renamed WWIL) opposed MSOs retaining carriage fee and LCOs keeping the basic tier fee, Rajan Raheja-controlled Hathway Datacom has supported such a model.

    In their submission to the Telecom Regulatory Authority of India (Trai), both Siti Cable and IndusInd have said MSOs should also get a share of the basic tier fee, which is collected by LCOs.
    Adding spice to the whole affair, the Cable Operators’ Federation of India (COFI) has suggested all round sharing of basic tier fee and carriage fee between MSOs and LCOs.

    All the three MSOs, responding to Trai’s call for feedback on interconnect regulations, have said that distribution of signals to subscribers should only be through digital set-top boxes as analogue boxes lack credentials.

    Trai had invited feedback from industry stakeholders on the proposed standard forms of interconnect agreements for CAS areas, draft regulation to mandate these standard forms and revenue sharing arrangements.

    The specific issues that were raised were the following:

    Should there be a uniform revenue share percentage between all broadcasters and MSOs and between MSOs and LCOs.
    Should the revenue share percentages for different broadcasters prevailing in Chennai be adopted in other CAS notified areas?
    Is there any other alternative method of arriving at the revenue share percentages amongst industry stakeholders.
    Upholding the rights of cable operators that it represents, COFI has suggested that franchisees of MSOs could be given a commission ranging between 5-10 per cent for selling set-top-boxes and other equipment to subscribers.

    The complete gist of comments of Hathway, Siti Cable, IndusInd and COFI on interconnect agreement is available on the regulator’s website at ww.trai.gov.in.

  • Walt Disney to buy out Hungama TV, take 15% stake in UTV

    Walt Disney to buy out Hungama TV, take 15% stake in UTV

    MUMBAI: The Walt Disney Company today announced that it has entered into an agreement to wholly acquire Hungama TV and take a 14.9 per cent equity interest in media company UTV Software Communications Ltd, in each case subject to regulatory approval.

    Disney has entered into an agreement to acquire 100 per cent of United Home Entertainment LTD (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications LTD, at a consideration of $ 14 million. So, the total combined investment is $ 44.5 million.

    The announcement confirms the news first put out by Indiantelevision.com that Disney would be buying into Hungama TV and picking up a small stake in UTV.

    Hungama TV COO Zarina Mehta will be working closely with the Disney team for the next three months to ensure a smooth organisational and operational integration of Hungama TV into Disney’s portfolio of kids channels. Post that Mehta will be working with Disney as a consultant for a period of six months to a year.

    Once final, the acquisition will firmly establish Disney’s ties in a rapidly growing media market where local content product is key. The combination of the three kids’ channels — Disney Channel, Toon Disney and Hungama TV — will establish Disney as a strong contender against the market leader Turner India (Cartoon Network and Pogo).

    “India is a long term strategic priority for the Walt Disney company. The acquisition of Hungama TV and the investments in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the countries leading integrated media companies,” said Walt Disney International president Andy Bird.

    “Not only will we be acquiring a great channel asset, we will also be able to participate in UTV’s diversified businesses and bring to UTV our global media and synergy expertise, including developing and distributing high quality family friendly content in nearly 200 countries worldwide and expanding related franchises across film, TV, music, merchandise, new media and live entertainment,” said Bird.

    When queried on Disney’s plans to launch a theme park in India, Bird answered in the negative. “We are not looking at a theme park in India,” he said.

    “TV is and will continue to be the major growth engine in building franchise affinity in India. Integrating Hungama TV in the Walt Disney Company’s existing India channel portfolio of Disney Channel and Toon Disney will allow Disney to fortify its already strong presence in India’s kids TV market,” said Disney Channel Worldwide president Rich Ross.

    When queried about the integration process of Hungama TV into Disney, Walt Disney Television International (Asia Pacific) senior vice president and managing director Nicky Parkinson said, “At present we are not sure how the integration will take place. We are in the process of finding out a way to best talk to kids. We are not here to cannabalise the market place. India is a relatively nascent market but one which has phenomenal potential.”

    “Hungama TV has proven its appeal to Indian children and families with compelling entertainment choices and has in a brief period built a strong management team and sucked out a leadership position in the competitive children’s TV environment. We are also delighted that Disney has chosen to make a strategic investment in UTV, which will augment our business in India and around the world,” said UTV group CEO Ronnie Screwvala.

    Launched in September 2004, Hungama is a 24-hour Hindi-language entertainment cable channel for children and is currently in a close fight with Turner’s Pogo channel for the the number two position in the Indian kids space behind leader Cartoon Network. Hungama TV has a staff strength of 71.

    Disney currently reaches over 107 million television homes in India through a programme block on Doordarshan and Disney Channel and Toon Disney/Jetix reached approximately 30 million homes on cable and satellite in India.

    UTV has a diversified set of businesses, which includes television and film production and distribution, animation production, and other services.

  • Ajay Vidyasagar to head Star’s internet, merchandising thrust

    Ajay Vidyasagar to head Star’s internet, merchandising thrust

    NEW DELHI: Star India, the revenue-generating arm of News Corp in Asia, is picking up the global threads being woven by its parent in the Internet and merchandising space and reorganizing its workforce accordingly.

    An indication to this effect is the new responsibilities given to Star India executive vice-president Ajay Vidyasagar who had thus far been looking after the network’s marketing and communication.

    As part of the changes being effected at Star India with an eye to tap new revenue generation sources, Vidyasagar will now be also responsible for the company’s soon-to-be-unveiled new thrusts in the internet and merchandising space.

    In his new role, Vidyasagar will be spearheading Star’s initiatives on the Net, part of which will entail “giving an Indian skin” to global activities being undertaken by News Corp.

    Meanwhile, Satya Ragahvan has moved in as head of marketing of Star India. Vidyasagar, will however continue holding the portfolios of marketing and communication.

    Star sources said that activities on the Net and merchandising fronts will hot up in India in fiscal 2007 when some other major initiatives on the programming, marketing and ad sales side too will be rolled out.

    Globally, Star’s parent News Corp has been prowling the Net space aggressively, prompting the likes of advertising wiz Martin Sorrell to question this haste.

    News Corp’s biggest buy in the space was of course last year’s $580 million acquisition of youth networking website MySpace.com.