If there are a couple of things that are noticeable about Zee Entertainment Enterprises CEO Punit Goenka, then it is his receding hairline and his continued optimism in his strategy to turn around the firm and bring it back under the family’s control. He has been rather reticent and aloof from media focusing on running the company. But he took time out to speak to Zee Business’ editor Anil Sanghavi on all things related to Zeel. Indiantelevision.com decided to share it with other Zee-o-philes so that they get a perspective on the way forward for the indigenous media major. Excerpts:
On how his role has changed since stepping down from the board
The fundamental dynamics remain unchanged. The entire operational structure continues exactly as before, with all teams reporting to me. The only significant change has been stepping down from the board, which has actually streamlined my role by eliminating various compliance obligations. This has proven to be quite beneficial as it allows me to channel my complete attention towards business operations and strategic initiatives. The reduction in administrative responsibilities has created space for more focused leadership.
On whether this transition has impacted company performance
The impact has been notably positive. We’ve seen a remarkable improvement in our financial performance, with profits climbing from 10.2 per cent to 16.1 per cent in December 2024. This growth isn’t merely coincidental – it’s a direct result of our enhanced focus on core operations and systematic cost optimisation efforts. The team’s ability to concentrate on business fundamentals without merger-related distractions has been instrumental in this improvement.
On whether another merger, perhaps with Sony, is still possible
We maintain an open and pragmatic approach to strategic opportunities. Any proposal, whether from Sony or other potential partners, will receive careful consideration. However, our criteria are clear and non-negotiable – any such arrangement must definitively benefit our company, create value for our shareholders, and safeguard our employees’ interests. It’s worth noting that we’ve amicably resolved our previous dispute with Sony, with both parties withdrawing all claims. This professional resolution keeps all future possibilities open.
On Zeel’s strategy for growth
Our growth strategy rests on three robust pillars: content creation, content monetisation, and fiscal prudence. We’ve invested about six to seven months in optimising our cost structure, which had become somewhat inflated during the merger preparations. This wasn’t just about cost-cutting – it was about creating a more efficient, agile organisation. Now, with that foundation in place, we’re actively pursuing growth opportunities across multiple fronts, with a particular focus on creating compelling content that resonates with our diverse audience base.
On how the group is addressing the digital transition
We recognise that the OTT space represents a distinct ecosystem with its own unique audience – viewers who have consciously moved away from traditional television. We’re responding with a sophisticated, multi-layered approach, developing specialised content specifically for this demographic. However, it’s crucial to note that traditional television remains robust in India, with reach growing by three to four per cent annually, currently standing at 70 per cent. This dual-track growth presents exciting opportunities for content development and audience engagement across both platforms.
On whether the promoter group will increase its stake from the current 3.99 per cent
The promoter group is actively exploring various options to enhance our shareholding position from the current 3.99 per cent. While this is fundamentally an internal matter, I can say that we’re evaluating multiple pathways to increase our stake in a manner that aligns with regulatory requirements and serves the best interests of all stakeholders. The timing and mechanism of such an increase will be carefully considered to ensure optimal value creation.
On the pending SEBI investigation
We’re still awaiting the regulator’s comprehensive report, which was originally due in April 2024. It’s important to note that the Securities Appellate Tribunal’s order contained no adverse findings against Zee promoters. We maintain a position of complete transparency and cooperation with Sebi, recognising and respecting their authority as a regulator to conduct thorough investigations. Our commitment to regulatory compliance remains unwavering, and we’re confident in our governance standards.
On the handling of corporate governance concerns.
We’ve implemented substantial measures to reinforce our corporate governance framework. Perhaps uniquely in our industry, we’ve established a board composed entirely of independent directors. This structure ensures robust oversight and independent decision-making. I’m proud to note that we haven’t faced any compliance-related complaints since 2018-19. Our governance practices often exceed industry standards, particularly in terms of ensuring comprehensive compliance across all operational aspects.
On how he views competition from international players
In the media industry, success isn’t purely a function of financial resources – it’s fundamentally about establishing an emotional connection with your audience. Our experience shows that when you genuinely resonate with viewers’ aspirations and cultural sensibilities, the commercial aspects naturally follow. We compete through deep understanding of local preferences, agile content creation, and cost-effective delivery of premium programming. International competition actually validates our market’s potential and drives innovation across the industry.
On his plans for content monetisation.
We’re developing a sophisticated, multi-tiered approach to monetisation that recognises the distinct characteristics of different audience segments. For our OTT platforms, we’re creating premium content while maintaining cost efficiency. In traditional broadcasting, we’re leveraging our deep market understanding to deliver content that maximises advertiser value while meeting viewer expectations. The key is maintaining quality while optimising production costs, ensuring sustainable profitability across all platforms.
Existing JioCinema and Disney+ Hotstar subscribers will be able to transition seamlessly to the new platform.
