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Tag: Anil Ambani

  • Meetings with broadcasters, agencies for great cricket auction begin; ICC cash registers set to ring

    Meetings with broadcasters, agencies for great cricket auction begin; ICC cash registers set to ring

    The International Cricket Council (ICC) on Tuesday began meetings with broadcasters and agencies in Dubai, marking the latest stage of its sale of media and sponsorship rights for ICC events from late 2007 to 2015.

    The ICC’s team of negotiators include former President Ehsan Mani, who played a key role in securing the current agreement with the News Corp owned Global Cricket Corporation (GCC) through News International Limited.

    That agreement, which began in 2000 and ends with the ICC Cricket World Cup 2007 in the West Indies next March and April, includes two ICC Cricket World Cups and three ICC Champions Trophy tournaments. The GCC had paid out $550 million to secure the rights after a fierce bidding war with Subhash Chandra’s Zee Telefilms. At the time of bidding the GCC was a 50:50 JV between News Corp and World Sport Nimbus (itself a 50:50 JV between Harish Thawani’s Nimbus and the UK-headquartered World Sport Group). News Corp subsequently bought out WSN’s stake in the JV.

    The first question that comes to mind of course is what are the numbers that will be thrown up in this round of bidding? Before doing that, it is worth examining how much more in terms of events are available for purchase. The number of World Cups (two) remain the same. The “Extraa Innings” are a possible one Champions Trophy (there were three in the previous package while this one has at least three and maybe four tourneys), two 20/20 World Championships and two Women’s Cricket World Cups in 2009 (Australia) and 2013 (India).

    Additionally, there are also the Cricket World Cup qualifiers and four ICC U/19 Cricket World Cups included in the eight-year timeframe.

    All told, there are a total of 18 ICC tournaments, the big ones being the two World Cups, in Asia (2011) and Australia / New Zealand (2015) respectively, and a minimum of three (possibly four) Champions Trophy tournaments.

    That is as far as the events themselves are concerned. On the revenue front, there will be a huge difference on the subscription side because of direct-to-home (DTH) and the rollout of conditional access system (CAS), as well as increasing broadband penetration.

    Sony had factored in some inflows from DTH when it made its bid for the current property, but the delay in the launch of DTH services put paid to that. For Sony, income from its ICC properties has been advertisement-led (to the tune of 65-75 per cent) rather than subscription driven.

    It would be safe to assume that this would get directly reversed in terms of revenue break-up between advertising and subscriptions by the time the next World Cup comes around in 2011. Subscription revenue will come in principally from digital cable (all cable-penetrated areas should be CAS-delivered by then) and DTH. Broadband will also offer significant revenue opportunities by then.

    Now, coming to the bidding. Even if the number of events were the same, and looking at the valuations that would have been obtained back in 2000, this would have been a higher value proposition because one of them is being held in India and the other has a clear time zone advantage for Indians (Australia / New Zealand as opposed to 2007’s edition in the West Indies). So if we were to look at a like to like comparison, the base value in 2000 would have at the very least been the $ 650 million that Zee had bid then for the same rights.

    The value of this property is essentially linked to what is the bid that the India part of it was worth. Sony paid $ 208 million for the C&S rights and the terrestrial rights that national broadcaster Doordarshan took would be another $ 47 million tallying up to $ 255 million. To find the base value of the India part of the rights using the above formula would imply a 25 per cent mark up or $ 320 million as being what they were worth then.

    What are the toppings to that? One Champions Trophy (if four are held) and two 20/20 events. Let’s say $ 400 million is what this would have been worth to Sony in 2000. Today we believe it will go for around $ 1.2 billion. Assuming that the India part will take up around 70 per cent of the total value of the ICC rights, we’re looking at bidding anywhere between $ 1.7 to $ 2 billion as being the range in which the punts will be made.

    Who has that kind of money? Star, Sony, Zee and maybe Anil Ambani’s ADAG if it decides to throw its hat in the ring. One player that is almost certain not to be in this particular game is Harish Thawani’s Nimbus. He has been taken out of the equation by the News Corp distribution deal. So could it end up being a fight between Sony-Ten Sports, News Corp-Nimbus and Zee Sports if Reliance doesn’t enter the fray? Quite possible.

    And if we were the betting sort our gut punt would be on Sony again walking away with this one. It is the more hungry and needs it more than News Corp. And being the incumbent will give it a clear advantage over an at least as hungry Zee.

  • Reliance Communications’ Falcon Cable System becomes operational

    Reliance Communications’ Falcon Cable System becomes operational

    MUMBAI: Reliance Communications owned Falcon Undersea Cable System has started its operational from today unleashing international bandwidth between India, Middle East and Europe.

    The Flag Telecom Global Network would be the world’s largest undersea cable system covering 65,000 route kms, with the launch of Falcon. The current bandwidth on India-Europe route is controlled by VSNL and Bharti.

    “Falcon will have an equally powerful impact on the economic front, driving higher levels of trade, commerce and global integration,” Reliance ADA chairman Anil Ambani said.

    The vision at Reliance ADA group is to ‘give millions of ordinary people across the world the means to realize their dreams, the power to shape their destiny, the chance to fulfill their true and diverse potential,” Ambani added.

    The Flag Global Network bridges the distance between 35 diverse developed and developing economies, connecting the global economic hubs in USA, UK, Germany, France, Middle East, India, Hong Kong, Singapore, China and Japan to name a few.

    The Company’s Flag is the first global network of this scale to provide integrated connectivity on one seamless network to the three highest growing regions; India, Middle East and China; in terms of international bandwidth demand.

  • Reliance Communications’ Falcon Cable System becomes operational

    MUMBAI: Reliance Communications owned Falcon Undersea Cable System has started its operational from today unleashing international bandwidth between India, Middle East and Europe.

    The Flag Telecom Global Network would be the world’s largest undersea cable system covering 65,000 route kms, with the launch of Falcon. The current bandwidth on India-Europe route is controlled by VSNL and Bharti.

    “Falcon will have an equally powerful impact on the economic front, driving higher levels of trade, commerce and global integration,” Reliance ADA chairman Anil Ambani said.

    The vision at Reliance ADA group is to ‘give millions of ordinary people across the world the means to realize their dreams, the power to shape their destiny, the chance to fulfill their true and diverse potential,” Ambani added.

    The Flag Global Network bridges the distance between 35 diverse developed and developing economies, connecting the global economic hubs in USA, UK, Germany, France, Middle East, India, Hong Kong, Singapore, China and Japan to name a few.

    The Company’s Flag is the first global network of this scale to provide integrated connectivity on one seamless network to the three highest growing regions; India, Middle East and China; in terms of international bandwidth demand.

  • TV18 to provide VC funding to convergence companies, earmarks Rs 500 million

    TV18 to provide VC funding to convergence companies, earmarks Rs 500 million

    MUMBAI: Raghav Bahl-promoted Television Eighteen is jumping into the convergence arena. The company plans to invest Rs 500 million in this space, identifying small-sized ventures which need funding support.

    TV18 will function more as a venture capitalist, making investments into these companies at an early stage. “We realise there are opportunities in the convergence area of internet, TV, and broadband. Small companies engaged in this field are springing up. We plan to support them and make judicious investments spread over a string of companies. We have taken an enabling resolution to make investments in this space up to a maximum of Rs 500 million,” says a senior company executive.

    TV18 is setting up a Media Venture Capital Trust (MVCT) through which it will make these investments. The MVCT shall be suitably structured as a tax efficient investment vehicle for undertaking these investments and will offer co-investment opportunities to the promoters of the company and other identified reputed investors.

    The investments will be primarily in high growth companies. “TV18 will seek to invest, directly or indirectly minority stakes in these companies through repayment guaranteed / collateralized instruments convertible into equity, with an option to increase up to majority stake at a later date, wherever possible, subject to necessary provisions and approvals,” the company informed the BSE.

    Outside these investments, TV18 will continue to acquire vertical portals. The company, which has internet ventures being consolidated into a wholly owned subsidiary, acquired in April a 50 per cent stake in the Indian arm of Jobstreet.com. Eariler in the year, it had invested in Yatra Online where other investors included Anil Ambani’s Reliance Capital and Norwest Venture Partners (NVP) – Promod Haque’s leading venture capital firm.

  • Anil Ambani’s Flag Telecom ties up with OmanTel for telecom, internet link

    Anil Ambani’s Flag Telecom ties up with OmanTel for telecom, internet link

    MUMBAI: Flag Telecom, a Reliance Infocomm company, is stepping up its global operations. The network support and communication services company has signed up with Oman Telecommunications Company (OmanTel) for providing an internet transit point between West Asia and Africa.

    Flag Telecom would also lay a marine cable for the Oman-based company. Flag Telecom executive president Punit Garg and Omantel executive president Mohammed Bin Ali Al Wahaibi signed the agreement.

    Internet services along with lease circuit services and the Multi-Party Labelling System (MPLS), known to be the fastest electronic link, would begin from September to 12 countries, including the six-nation Gulf Cooperation Council.

    “One of the agreements is to make Oman a link between Africa and the Middle East in the Flag’s loop cable project, relating to the extension of communication links to Egypt and Hong Kong via marine cables with multiple landings in the Gulf region,” says an official release.

    Omantel will seek to extend the African cable through a network of marine cables to converge at Seeb and Khasab in Oman.

    The second agreement, to start in September, will be to make the country an internet transit point, catering to 12 countries including members of the Gulf Cooperation Council. It will also provide lease circuit services as well as multi-party labelling system, the fastest in electronic telecommunication technology.

    “The signing of the MoUs was part of Omantel’s keenness to boost its investments and to make the country a global communication hub,” says Al Wahaibi .

    Flag Telecom has gained from a strong demand for its bandwidth by broadband service providers across the globe. In 2005, it signed major contracts for additional capacity with international carriers and a global internet content provider.

  • Adlabs bids for 3 studios in Film City

    Adlabs bids for 3 studios in Film City

    MUMBAI: Anil Ambani-controlled Adlabs Films has submitted a bid for setting up three film studios at Film City in Mumbai’s Goregaon suburb.

    “Film City had come out with a tender. We have submitted our bid and are confident of bagging it,” says Adlbas Films chairman and managing director Manmohan Shetty.

    The plan is to make studios which would match the quality of Hollywood with shooting floors, editing and processing facilities.

    Adlabs runs a chain of multiplexes and is engaged in the business of film production, processing and editing. After Ambani took a controlling stake, the company has also ventured into film distribution to spread its presence across the entire value chain.Film City has received nine bids for the Rs 300 million project, according to a report which quoted managing director Bhushan Gagrani.

    In the 90s, Film City harboured the dream of setting up three studios but had to shelve the project due to lack of financial resources. Pressed by a fast-growing film and television industry, the decision to revive the project was taken recently under the build-operate-own-transfer model. The bidder who offers to transfer the assets in the shortest period will be awarded the contract. 

  • Adlabs to foray into production of Hollywood movies

    Adlabs to foray into production of Hollywood movies

    MUMBAI: Anil Ambani-controlled Adlabs Films Ltd is entering into production of Hollywood movies through AshoK Amritraj’s Hyde Park Entertainment Group.

    “We will be making Hollywood movies only with Hyde Park Entertainment. The first co-financed movie will start production in the next 2-3 months. We are finalising the investment details. We are also working out other movie projects,” says Adlabs Films chairman and managing director Manmohan Shetty.

    The signing of the co-production, film financing deal with Hyde Park Entertainment Group comes after Adlabs Films has set up offices in UK and US. Though distribution of Bollywood movies will form the primary business activity, the overseas operations will also explore opportunities in film production and post-production activities.

    Adlabs plans to distribute 18-24 films overseas this year and has some of the biggest films lined up for release in the coming months, like Rakesh Roshan’s Krrish, Sajid Nadiadwala’s Jaanemann, Ravi Chopra’s Babul and Mani Ratnam’s Guru.

    Hyde Park Entertainment, a production, financing and international sales company privately held by American film producer Amritraj, is planning to establish a foothold in India and is in talks to form a joint venture with an Indian animation company.

  • TV18 to bring internet biz under Web 18

    TV18 to bring internet biz under Web 18

    MUMBAI: Television Eighteen is consolidating its internet businesses under a single holding company, Web 18.

    Web 18 will undertake activities of acquisitions of other internet businesses and websites, in exchange for cash stock or other valid consideration, including the website. TV18 will hold its EGM on 29 June to also allow Web 18 to raise funds from strategic and financial investors via private placement or public listing or in any other manner in one or more tranches. The TV18 Group, however, will retain control and at least 51 per cent of the voting rights of Web 18.

    Web 18 will reserve up to a maximum of 10 per cent of its shareholding to run a stock option plan for its employees and other key personnel.

    TV18 has been acquiring internet properties to create a bouquet. The company recently acquired a 50 per cent stake in the Indian arm of Jobstreet.com. Eariler in the year, it had invested in Yatra Online where other investors included Anil Ambani’s Reliance Capital and Norwest Venture Partners (NVP) – Promod Haque’s leading venture capital firm.

    The company also manages online platforms which include moneycontrol.com, commoditiescontrol.com, poweryourtrade.com and ibnlive.com. 

  • B.A.G plans to invest Rs 500 million in radio biz

    B.A.G plans to invest Rs 500 million in radio biz

    MUMBAI: B.A.G Infotainment, a wholly owned subsidiary of B.A.G. Films Ltd, plans to invest over Rs 500 million for its FM radio business spread over 10 towns.

    The investment includes expenses towards infrastructure, equipments and studio facilities. The company will also have to contribute to the common transmission infrastructure. “We have bid successfully at very low costs. This has given us an edge and our outgo towards license fee is just 10 per cent of our project cost,” says B.A.G Intotainment CEO Rajiv Mishra.

    B.A.G is also trying to work out an equity arrangement among a consortium of small and regional radio operators who are in the process of being formed for collectively tapping advertising. “Our feeling is that there should be a common bonding for the consortium that will make it last. This will be best served by an equity arrangement among the partners. We are in talks towards this,” says Mishra.

    The consortium of radio operators for ad sales is in the process of being finalised. B.A.G will lead this combination which will have a national footprint to present before advertisers. Besides pressuring on higher ad rates, the partnership arrangement can help drive down operating costs for these FM broadcasting companies.
    B.A.G expects to rope in 40 radio companies as members of this consortium. The idea is to counter the bigger players like Radio Mirchi, Radio City, Sun TV group and Anil Ambani-controlled Adlabs. “We hope to form the consortium by 15 July. We have already signed up with six companies including Renecka Fincon and Gwalior Farms. We are also in advanced talks with many others,” says Mishra.

    B.A.G has bagged licenses to operate stations in Shimla, Patiala, Karnal, Hissar, Ahmednagar, Jabalpur, Dhule, Jalgaon, Muzzaffarpur and Ranchi. “We expect the second phase of FM stations to be active by December. The marketing efforts should start somewhere in September-October. As for selecting radio companies who would form the consortium, we are careful that in each locality no competing operator is selected. We are selecting geographical blocks,” says Mishra.

  • Digital cinema to go low-cost route in India

    Digital cinema to go low-cost route in India

    MUMBAI: Digital cinema is about to take off in India with major players like Anil Ambani-controlled Adlabs Films and Subhash Chandra’s E-City chalking out rollout plans, speakers at a seminar in Mumbai said.

    There are around 400 theatres who have installed digital systems and many more are in the pipeline. But the model being followed so far is low-cost digital cinema or “e-cinema” in contrast to the 1200 installations of “d-cinema” (top quality) made across the world.

    “E-cinema is going to be the larger play in India because of its low-cost model. There is no proper initiative of d-cinema with just two installations so far,” Texas Instruments India business development manager of DLP Products S Ganesh said while speaking at the sixth exhibition of Cinema India 2006.

    Though digital cinema is yet to catch on, this year will see growth from the US which had 600 installations till 31 March 2006. “D-cinema installations are expected to touch 2500 in FY07 with US seeing close to 1800 screens,” said Ganesh.

    Mumbai-based UFO Moviez, a service provider, services 300 theatres in B and C centres. Though it also uses hard disk mode of distribution, the main format to download movies is through satellite delivery. “Digital cinema was a dormant market that was not addressed. Digital delivery of movies has made it possible for B and C centre theatres to have first day releases of big movies. This has meant more audiences and revenues for them,” said Valuable Media Pvt Ltd chief technical officer Sanjay Chavan.

    There are three modes of digital delivery of movies. At the low end is the hard drive model which is loaded into the server in the theatre. Big telecom players like Reliance Infocomm can use their fibre optic backbone to deliver content. The most cost-effective model is the satellite distribution system but it would require more bandwidth.

    “Interoperability and playability across the service providers need to be tackled. We provide solutions which can interchange packages with Dolby and Kodak among others,” said real Image Media Technologies director Senthil Kumar.

    Real Image, which recently received funding from Intel Capital, serves 70 cinema theatres in Tamil Nadu. The Chennai-based company has also sold servers to theatres in the US. “Digital cinema enables democracy in filmmaking and can beat back video pirates. Only a complete end-to-end digital solutions can completely prevent piracy,” says Senthil.

    There is a big task at hand if digital cinema has to be a major force as India has converted only 400 out of a total of 8,000 theatres. While there are 110,000 theatres across the world, the US has 35,000 screens.