Tag: Punit Goenka

  • Zee Classic refreshes in attempt to attract mass audiences

    Zee Classic refreshes in attempt to attract mass audiences

    MUMBAI: The Punit Goenka-led Zee Entertainment Enterprises Ltd (ZEEL) has got into a hyper-refresh mood, revamping its channels, one after the other. First, it announced the relaunch of Zindagi, and now it’s the turn of Zee Classic.

    Known for showcasing movies from the sixties, seventies and eighties and nineties era, the channel is being revamped on 3 October with a new positioning and programming line-up. The reason: it has ambitious plans to expand its target audience, and thus its viewership.

    The management says it has come up with a disruptive programming idea: catalogue movies from each era into a separate time band. The channel claims that the Zee Classic is the first Indian Hindi movie channel to initiate this, and has roped in the Bollywood heartthrob Arjun Kapoor to be the channel’s ambassador.

    “At Zee, we have the largest library of movies, and now Zee Classic is adopting a strategic time-band approach instead of the the routine FPC approach,” say Zee Hindi movie cluster business head Ruchir Tiwari. “This strategy is a result of meticulous planning, acquisition and programming for an entire year which will ensure that Zee Classic caters to all kinds of viewers.”

    The library that Tiwari is referring to is 500-plus strong and includes movies over four decades – possibly catering to three generations – and hence, the channel’s proposition “Woh Zamaana, Kare Deewana”, and the revamp campaign theme “Aaj Ka Classic.”

    The time bands that have been introduced include:

    The ‘Best of 80s and 90s’ that will showcase hits from decades that saw the emergence of more than 10 superstars ranging from Jackie Shroff, Sunny Deol, Mithun Chakraborty, Anil Kapoor to the three Khans, Govinda and Akshay Kumar.

    ‘The ’70s Mix’ will showcase blockbusters from the 1970s, an era that reflected the nuances of the society, but turned out to be preeminently a decade of the ‘angry young man’, action movies and melodious music.

    ‘Shaandar Sixties’ will present movies of the 1960s, a decade that saw the rise of the popular romantic genre. The golden era of ‘Black and White’ that set the foundation of the Hindi film industry will include masterpieces that will transport spectators back in time.

    Highlighting this shift, will be exclusively curated movie festivals like Jhakaas Kapoor Festival, Har Din Bachchan, Shah Rukh Khan B’day Special, among many others and specials like ‘Timeless Asha.’

    Earlier, Zee Classic was targeted at mature adults – which served as a niche – but it attracted younger audiences too. The channel has now dissected its viewers into the connoisseurs of golden cinema, the middle-aged adults, the new-age classic as well as contemporary young adults. “From the channel’s perspective, the core, however, will be the 25- 45 years age group,” says Tiwari. “UP is the biggest market, and for us the northern belt is a priority.”

    From 2004 to 2010, Zee Classic recorded a two per cent viewership share in the Hindi movie genre. This, according to Tiwari, has risen to six per cent over the past year. The idea is to now take that up to 10 per cent. “We see the channel catering to mass audiences in its specific space. It has the potential to compete with the top rated channels in the genre. It’s a strategic call that we took,” explains Tiwari. “We have to buy the films accordingly, and also plan (in that manner).”

    Zee Unimedia chief operating officer Ashish Sehgal reveals, “Zee Classic contributes a massive 15 per cent revenue share in the Zee Hindi movies cluster among the SD channels – Zee Cinema, &pictures, Zee Classic, Zee Action and Zee Anmol Cinema. In the last three to four years, Zee Classic’s revenue has grown more than four times, and as it’s evolving; currently it commands a premium rate even at its existing ratings.”

    The introduction of time bands is also expected to appeal to FMCG and other advertisers automobiles, mobile handsets, telecom and take revenues up further. “The Zee Classic viewer is comparatively more involved than on any other Hindi movie channel. For the brand campaign ‘Aaj Ka Classic,’ we have locked in three channel partners including SC Johnson, Hindustan Unilever and Dabur across all the time bands,” says Sehgal.

    The look and property of the Zee Classic logo has been designed by Zee TV’s in-house team, while the entire Aaj Ka Classic marketing and promotional campaign has been executed by FCB Ulka. Print, TV, digital and outdoor media are to be used in an aggressive manner. The TVC has been created keeping in mind the grandeur of the Indian cinema as well as the taste of the movie buff. Iconic memorabilia comprising the friend cap, musical instruments like accordion, classic movie posters, collection of books, DVDs and many more have been used to relive the various decades of cinema.

    Rights owner and film distributor Goldmines Telefilms director Manish Shah is all praise for Zee Classic. Says he: “Right now there are only two channels Zee Classic and Max 2, which are looking towards old movies. Zee Classic has a good library of classic movies. However, sometimes it resorts to airing Zee Cinema type movies to get viewership numbers.”

    And, he cautions that the tack of airing too many repeats and expanding audiences through the revamp may not really work. “We need to understand that Classic reaches to a niche audience, it is not mass audience, and if you keep repeating those movies, the viewership eventually will fall.,” he explains. “Also, if it is looking for 90s and NFDC films, then these are the kinds of movies which Classic audience doesn’t want to watch.”

    Be that as it may, the ZEEL team is pretty enthusiastic about Zee Classic’s shift. As is the brand ambassador Arjun Kapoor. Says he: “I am thrilled to be a part of ‘Aaj Ka Classic’. I have grown up loving cinema and classics have defined my choices as a viewer as well as an actor. My grandfather, father, and uncle have contributed to Hindi films for years, and I have fond memories of going on the sets and film trial shows. These movies will always be a reference point, always at the back of my mind. I am happy that Zee Classic gave me the opportunity to be a part of this campaign and I appreciate their initiative of introducing such time-band-led programming on their channel.”

    Will Zee Classic viewers too show similar appreciation?

  • Zee Classic refreshes in attempt to attract mass audiences

    Zee Classic refreshes in attempt to attract mass audiences

    MUMBAI: The Punit Goenka-led Zee Entertainment Enterprises Ltd (ZEEL) has got into a hyper-refresh mood, revamping its channels, one after the other. First, it announced the relaunch of Zindagi, and now it’s the turn of Zee Classic.

    Known for showcasing movies from the sixties, seventies and eighties and nineties era, the channel is being revamped on 3 October with a new positioning and programming line-up. The reason: it has ambitious plans to expand its target audience, and thus its viewership.

    The management says it has come up with a disruptive programming idea: catalogue movies from each era into a separate time band. The channel claims that the Zee Classic is the first Indian Hindi movie channel to initiate this, and has roped in the Bollywood heartthrob Arjun Kapoor to be the channel’s ambassador.

    “At Zee, we have the largest library of movies, and now Zee Classic is adopting a strategic time-band approach instead of the the routine FPC approach,” say Zee Hindi movie cluster business head Ruchir Tiwari. “This strategy is a result of meticulous planning, acquisition and programming for an entire year which will ensure that Zee Classic caters to all kinds of viewers.”

    The library that Tiwari is referring to is 500-plus strong and includes movies over four decades – possibly catering to three generations – and hence, the channel’s proposition “Woh Zamaana, Kare Deewana”, and the revamp campaign theme “Aaj Ka Classic.”

    The time bands that have been introduced include:

    The ‘Best of 80s and 90s’ that will showcase hits from decades that saw the emergence of more than 10 superstars ranging from Jackie Shroff, Sunny Deol, Mithun Chakraborty, Anil Kapoor to the three Khans, Govinda and Akshay Kumar.

    ‘The ’70s Mix’ will showcase blockbusters from the 1970s, an era that reflected the nuances of the society, but turned out to be preeminently a decade of the ‘angry young man’, action movies and melodious music.

    ‘Shaandar Sixties’ will present movies of the 1960s, a decade that saw the rise of the popular romantic genre. The golden era of ‘Black and White’ that set the foundation of the Hindi film industry will include masterpieces that will transport spectators back in time.

    Highlighting this shift, will be exclusively curated movie festivals like Jhakaas Kapoor Festival, Har Din Bachchan, Shah Rukh Khan B’day Special, among many others and specials like ‘Timeless Asha.’

    Earlier, Zee Classic was targeted at mature adults – which served as a niche – but it attracted younger audiences too. The channel has now dissected its viewers into the connoisseurs of golden cinema, the middle-aged adults, the new-age classic as well as contemporary young adults. “From the channel’s perspective, the core, however, will be the 25- 45 years age group,” says Tiwari. “UP is the biggest market, and for us the northern belt is a priority.”

    From 2004 to 2010, Zee Classic recorded a two per cent viewership share in the Hindi movie genre. This, according to Tiwari, has risen to six per cent over the past year. The idea is to now take that up to 10 per cent. “We see the channel catering to mass audiences in its specific space. It has the potential to compete with the top rated channels in the genre. It’s a strategic call that we took,” explains Tiwari. “We have to buy the films accordingly, and also plan (in that manner).”

    Zee Unimedia chief operating officer Ashish Sehgal reveals, “Zee Classic contributes a massive 15 per cent revenue share in the Zee Hindi movies cluster among the SD channels – Zee Cinema, &pictures, Zee Classic, Zee Action and Zee Anmol Cinema. In the last three to four years, Zee Classic’s revenue has grown more than four times, and as it’s evolving; currently it commands a premium rate even at its existing ratings.”

    The introduction of time bands is also expected to appeal to FMCG and other advertisers automobiles, mobile handsets, telecom and take revenues up further. “The Zee Classic viewer is comparatively more involved than on any other Hindi movie channel. For the brand campaign ‘Aaj Ka Classic,’ we have locked in three channel partners including SC Johnson, Hindustan Unilever and Dabur across all the time bands,” says Sehgal.

    The look and property of the Zee Classic logo has been designed by Zee TV’s in-house team, while the entire Aaj Ka Classic marketing and promotional campaign has been executed by FCB Ulka. Print, TV, digital and outdoor media are to be used in an aggressive manner. The TVC has been created keeping in mind the grandeur of the Indian cinema as well as the taste of the movie buff. Iconic memorabilia comprising the friend cap, musical instruments like accordion, classic movie posters, collection of books, DVDs and many more have been used to relive the various decades of cinema.

    Rights owner and film distributor Goldmines Telefilms director Manish Shah is all praise for Zee Classic. Says he: “Right now there are only two channels Zee Classic and Max 2, which are looking towards old movies. Zee Classic has a good library of classic movies. However, sometimes it resorts to airing Zee Cinema type movies to get viewership numbers.”

    And, he cautions that the tack of airing too many repeats and expanding audiences through the revamp may not really work. “We need to understand that Classic reaches to a niche audience, it is not mass audience, and if you keep repeating those movies, the viewership eventually will fall.,” he explains. “Also, if it is looking for 90s and NFDC films, then these are the kinds of movies which Classic audience doesn’t want to watch.”

    Be that as it may, the ZEEL team is pretty enthusiastic about Zee Classic’s shift. As is the brand ambassador Arjun Kapoor. Says he: “I am thrilled to be a part of ‘Aaj Ka Classic’. I have grown up loving cinema and classics have defined my choices as a viewer as well as an actor. My grandfather, father, and uncle have contributed to Hindi films for years, and I have fond memories of going on the sets and film trial shows. These movies will always be a reference point, always at the back of my mind. I am happy that Zee Classic gave me the opportunity to be a part of this campaign and I appreciate their initiative of introducing such time-band-led programming on their channel.”

    Will Zee Classic viewers too show similar appreciation?

  • ZEEL Cignals deal for Filipino channel Zee Sine

    ZEEL Cignals deal for Filipino channel Zee Sine

    MUMBAI: Zee Entertainment Enterprises Limited has signalled a deal with Cignal TV for Filipino channel Zee Sine.

    Earlier this year, ZEEL had announced its foray into the Philippines with its Tagalog and Taglish language Bollywood movie channel Zee Sine in partnership with the local cable TV distributor Cable Boss. Since then, it has been expanding its reach. An agreement with the cable TV MSO Cable Link followed which gave it access to subscribers in parts of Manila.

    Then, last week, it announced a carriage deal with local satellite platform and DTH operator Cignal TV.

    Cignal, launched in 2009, transmits 102 channels including free-to-air, SD and HD channels to household and commercial venues nationwide. It also offers a mix of 12 audio channels and on-demand service through pay-per-view channels. It is owned by MediaQuest Holdings, the media partner of PLDT Group.

    The entertainment major launched the Zee Sine on pay TV and DTH operator Cignal TV which boasts a subscriber base in excess of 1 million. After launching channels in Latin America, Germany, Indonesia, the US, Malaysia, Thailand (not necessarily in that order), it was now the turn of the south-east Asian nation to see another offering from the Punit Goenka-led company.

    Available on Channel 19 with Cignal Postpaid plan 290 and up and Cignal Prepaid Premium 300 and up, Zee Sine is backed by ZEEL’s Bollywood movie library, the world’s largest with over 3500 titles.

    The tag line of the channel is Bollywood Na Tayo! (Let’s Go Bollywood) and viewers have three Bollywood movies on offer daily with the 8pm movie band being themed as unli tawa Mondays (comedy), lab na lab on Tuesdays (romance), Bollywood divas on Wednesdays, Hari ng Aksyon Huwebes (action), star of the month on Fridays, blockbuster movies on Saturday and special monthly thematic films on Sundays.

    Cignal VP/Head of Channels Management, Sienna Olaso, said that the partnership with ZEEL was a strong affirmation of Cignal’s commitment to provide the best Pay TV service to their loyal subscribers by providing them with world class shows and channels that catered to their diverse tastes in TV viewing.

    Zee Entertainment CEO, Middle East and Asia Pacific, Mukund Cairae, said that Fillipinos had love in abundance for music and dance that Bollywood represents. Cairae added that he anticipated Fillipnos to connect with the Bollywood masala as the core values across Asia were similar. The strategy was to put Zee TV’s movies and shows on free to air channels while also running the 24×7 pay TV channel Zee Sine.

    Cairae said the company was seeking to to do Filipino productions in phase II of the launch.

  • ZEEL Cignals deal for Filipino channel Zee Sine

    ZEEL Cignals deal for Filipino channel Zee Sine

    MUMBAI: Zee Entertainment Enterprises Limited has signalled a deal with Cignal TV for Filipino channel Zee Sine.

    Earlier this year, ZEEL had announced its foray into the Philippines with its Tagalog and Taglish language Bollywood movie channel Zee Sine in partnership with the local cable TV distributor Cable Boss. Since then, it has been expanding its reach. An agreement with the cable TV MSO Cable Link followed which gave it access to subscribers in parts of Manila.

    Then, last week, it announced a carriage deal with local satellite platform and DTH operator Cignal TV.

    Cignal, launched in 2009, transmits 102 channels including free-to-air, SD and HD channels to household and commercial venues nationwide. It also offers a mix of 12 audio channels and on-demand service through pay-per-view channels. It is owned by MediaQuest Holdings, the media partner of PLDT Group.

    The entertainment major launched the Zee Sine on pay TV and DTH operator Cignal TV which boasts a subscriber base in excess of 1 million. After launching channels in Latin America, Germany, Indonesia, the US, Malaysia, Thailand (not necessarily in that order), it was now the turn of the south-east Asian nation to see another offering from the Punit Goenka-led company.

    Available on Channel 19 with Cignal Postpaid plan 290 and up and Cignal Prepaid Premium 300 and up, Zee Sine is backed by ZEEL’s Bollywood movie library, the world’s largest with over 3500 titles.

    The tag line of the channel is Bollywood Na Tayo! (Let’s Go Bollywood) and viewers have three Bollywood movies on offer daily with the 8pm movie band being themed as unli tawa Mondays (comedy), lab na lab on Tuesdays (romance), Bollywood divas on Wednesdays, Hari ng Aksyon Huwebes (action), star of the month on Fridays, blockbuster movies on Saturday and special monthly thematic films on Sundays.

    Cignal VP/Head of Channels Management, Sienna Olaso, said that the partnership with ZEEL was a strong affirmation of Cignal’s commitment to provide the best Pay TV service to their loyal subscribers by providing them with world class shows and channels that catered to their diverse tastes in TV viewing.

    Zee Entertainment CEO, Middle East and Asia Pacific, Mukund Cairae, said that Fillipinos had love in abundance for music and dance that Bollywood represents. Cairae added that he anticipated Fillipnos to connect with the Bollywood masala as the core values across Asia were similar. The strategy was to put Zee TV’s movies and shows on free to air channels while also running the 24×7 pay TV channel Zee Sine.

    Cairae said the company was seeking to to do Filipino productions in phase II of the launch.

  • After Uday Shankar, Punit Goenka is new IBF president

    After Uday Shankar, Punit Goenka is new IBF president

    MUMBAI: The 17th Annual General Meeting (AGM) of The Indian Broadcasting Foundation (IBF) was held in New Delhi today. In the IBF Board of Directors meeting thereafter, Punit Goenka (Managing Director & CEO, Zee Entertainment Enterprises) was elected as the Foundation’s President.

    The IBF Board also elected Rajat Sharma (Chairman, India TV), N.P. Singh (CEO, Sony Pictures Network), Sudhanshu Vats (Group CEO, Viacom 18), K. Madhavan (Managing Director, Asianet Communications) as Vice-Presidents; and K.V.L. Narayan Rao (Executive Vice-Chairperson, NDTV) as the Treasurer of the Foundation for a period of one year.

    After being appointed, Goenka said, “I am delighted to lead the Indian broadcasting sector at a time when there is a lot of churning and India is being looked upon as global destination for investments. In the ensuing and continuing efforts of making India as a broadcasting superpower, I wish to work in a most collaborative manner with the Government, Industry and other stakeholders for realization of the sector’s value chain to the optimum.”

    Outgoing IBF President Uday Shankar said, “I cannot think of a more suitable person than my dear friend, Punit Goenka to handover the leadership of IBF. Over the years, Punit has eminently helped me in navigating IBF through these volatile times. He is also the primary architect of Broadcast Audience Research Council (BARC). His intelligence, dynamism and maturity will be great assets for IBF and the Indian media.”

  • After Uday Shankar, Punit Goenka is new IBF president

    After Uday Shankar, Punit Goenka is new IBF president

    MUMBAI: The 17th Annual General Meeting (AGM) of The Indian Broadcasting Foundation (IBF) was held in New Delhi today. In the IBF Board of Directors meeting thereafter, Punit Goenka (Managing Director & CEO, Zee Entertainment Enterprises) was elected as the Foundation’s President.

    The IBF Board also elected Rajat Sharma (Chairman, India TV), N.P. Singh (CEO, Sony Pictures Network), Sudhanshu Vats (Group CEO, Viacom 18), K. Madhavan (Managing Director, Asianet Communications) as Vice-Presidents; and K.V.L. Narayan Rao (Executive Vice-Chairperson, NDTV) as the Treasurer of the Foundation for a period of one year.

    After being appointed, Goenka said, “I am delighted to lead the Indian broadcasting sector at a time when there is a lot of churning and India is being looked upon as global destination for investments. In the ensuing and continuing efforts of making India as a broadcasting superpower, I wish to work in a most collaborative manner with the Government, Industry and other stakeholders for realization of the sector’s value chain to the optimum.”

    Outgoing IBF President Uday Shankar said, “I cannot think of a more suitable person than my dear friend, Punit Goenka to handover the leadership of IBF. Over the years, Punit has eminently helped me in navigating IBF through these volatile times. He is also the primary architect of Broadcast Audience Research Council (BARC). His intelligence, dynamism and maturity will be great assets for IBF and the Indian media.”

  • ZEEL files Ten Sports sale details with BSE

    ZEEL files Ten Sports sale details with BSE

    MUMBAI: Further to the announcement of the acquisition of its Ten Sports Network by Sony Pictures Networks India, Zee Entertainment Enterprises, issued a disclosure report to the Bombay Stock Exchange (BSE) giving further details of the deal.

    ZEEL stated that the sports broadcasting is housed under two companies: Taj TV Ltd, Mauritius and Taj Television (India) Pvt Ltd. The first is a step down foreign subsidiary which is involved in the broadcasting and distribution of sports content through the TEN brand of TV channels owned by it and has broadcasting rights to various sports events, including those from five cricket boards. Taj Television, a domestic wholly owned subsidiary, acts as an exclusive agent in India for down-linking, marketing, distributing and ad sales of the channels owned by Taj TV.

    It further elaborated that the sports broadcasting business contributed Rs 631 crore (net of inter company transactions), constituting 10.79 per cent of the consolidated revenue and a loss of Rs 37.20 crore in FY2015-2016.

    The sale deed involves SPN India, picking up ZEEL’s entire stake in the Indian subsidiary. Taj TV Mauritius would on a slump sale basis be selling its sports broadcasting business to Aqua Holdings Investments, Mauritius and MSM Asia Ltd, UK –affiliates of Sony Pictures Networks.

    The company states that the entire transaction would take four to five months to be completed and is subject to regulatory approvals and also certain precedent conditions being fulfilled.

  • ZEEL files Ten Sports sale details with BSE

    ZEEL files Ten Sports sale details with BSE

    MUMBAI: Further to the announcement of the acquisition of its Ten Sports Network by Sony Pictures Networks India, Zee Entertainment Enterprises, issued a disclosure report to the Bombay Stock Exchange (BSE) giving further details of the deal.

    ZEEL stated that the sports broadcasting is housed under two companies: Taj TV Ltd, Mauritius and Taj Television (India) Pvt Ltd. The first is a step down foreign subsidiary which is involved in the broadcasting and distribution of sports content through the TEN brand of TV channels owned by it and has broadcasting rights to various sports events, including those from five cricket boards. Taj Television, a domestic wholly owned subsidiary, acts as an exclusive agent in India for down-linking, marketing, distributing and ad sales of the channels owned by Taj TV.

    It further elaborated that the sports broadcasting business contributed Rs 631 crore (net of inter company transactions), constituting 10.79 per cent of the consolidated revenue and a loss of Rs 37.20 crore in FY2015-2016.

    The sale deed involves SPN India, picking up ZEEL’s entire stake in the Indian subsidiary. Taj TV Mauritius would on a slump sale basis be selling its sports broadcasting business to Aqua Holdings Investments, Mauritius and MSM Asia Ltd, UK –affiliates of Sony Pictures Networks.

    The company states that the entire transaction would take four to five months to be completed and is subject to regulatory approvals and also certain precedent conditions being fulfilled.

  • Ten Sports proposed sale: Biz acumen trumps emotions

    Ten Sports proposed sale: Biz acumen trumps emotions

    NEW DELHI: In business, emotions have importance, but they have to be weighed against the larger interest (of the company). This was Zee boss Subhash Chandra telling an eager journalist on the media beat for a business newspaper in the fag end of 90s after having just bought out Rupert Murdoch from three joint ventures in a cash-and-stock deal worth few shades less than $ 300 million.

    When an announcement came on 29 August 2016, almost 16 years and mega growth later, on the Bombay Stock Exchange from Zee Entertainment Enterprises Ltd (ZEEL) that in order to maximize shareholders returns, the company, while exploring various strategic options to start or exit businesses, is in an advanced stage of negotiations to sell off its sports business (carried out under the Ten Sports brand), it generated lot of hiccups all around. This despite the fact that the rumor about an impending sale had been going around for quite some time now.

    But to indiantelevision.com shedding off of a business that could — and is partially doing so, financial analysts opine — turn the company’s bottomline scarlet is classic Chandra. A risk taker to the core, he is equally quick to invest as he is to divest. Of course, at a price that makes sense. He has designed his group to be very bottom line focused and cut losses whenever things are not looking good.

    Though it could be argued that this time round the final call to exit the sports business in the face of rising content acquisition costs and inadequate proportionate revenues (India’s slow digitisation process has been hampering real-time growth in subscription earnings) must have been taken by Chandra’s eldest son helming ZEEL, Punit Goenka, a true chip off the old block.

    The speculated price for Ten Sports’ impending sale, acquired from its Dubai-based owner Abdul Rahman Bukhatir’s Taj Group in 2006, is around Rs 2,000 crore. The prospective buyer: Japan’s Sony group’s Sony Pictures Networks India (SPN India), presently headquartered in the US with its APAC head office in Singapore.

    If the Indian Premier League (IPL) cricket is now a phenomenon to reckon with in world sports, being compared with the likes of the money-spinning NBA, tennis and golf leagues, it had an ancestor in ICL (Indian Cricket League).

    Conceptualized by Zee with Chandra’s active backing, ICL in the mid-2000 era couldn’t flower like IPL, a property of the Indian cricket board. Reason: Zee and Chandra were on the wrong side of the Indian cricket bosses who refused to recognize ICL and also pressured the international cricket community to boycott it terming it an illegitimate affair. A lot of cloak and dagger followed with some associates and partners apparently letting him down as he sought to fulfill his passion and dream that sports television in India should be in the hands of Indians, rather than some foreign broadcasters as it is in other countries.

    And, then came Lalit Modi with his own blueprint for a cricket league about nine years back that’s now known as IPL and, along with Kaun Banega Crorepati (KBC), is one of the bigger revenue earners for the present broadcast rights holder SPN India. However, many argue that Modi simply polished Chandra’s ICL — an allegation that the now-banished Indian has always denied saying the IPL idea was much older than even ICL.

    ZEEL did make attempts to get the broadcast rights for the IPL too to boost revenues for its Ten Sports channels, but was out-batted and bowled by the Indian cricket bosses. Not to mention that in the meantime the acquisition cost of cricket rights related to anything Indian kept going north.

    In a cricket-crazy nation where advertisers pour in money in cricket (except probably the original domestic leagues like the Ranji and the Duleep Trophy that get much discounted rates from sponsors and broadcasters), Zee’s Ten Sports ventured out looking for cricket rights in places like Sri Lanka, Bangladesh, and Zimbabwe, which enthused sponsors less compared to, say, an India vs. Australia cricket series. Additionally, from time to time the Essel group announced that it would be putting together other cricket leagues, involving local Indian domestic teams or international ones. But apparently, that did not go well, either courtesy resistance from boards or the fact they ended up being commercially unviable.

    Though while announcing its financial results for the first quarter for FY 2017 ending June, Zee did mention that key properties on its sports channels during the April-June 2017 quarter included telecast of Zimbabwe vs. India cricket series, WI-Australia-SA cricket series, the UEFA Champions League football final and WWE among others. The sports business revenue in the first quarter of FY2017 was Rs 1,700 million, while the cost incurred in this quarter was Rs 1,529 million. Certainly a narrow gap that would tend to get narrower with former ally-turned-competitor Murdoch’s Star India investing aggressively in sports led by cricket rights.

    For Ten Sports to survive largely on properties that not only had limited appeal for viewers and, thus, Indian sponsors (considered one of the bigger spenders in the world of sports, especially cricket) it would have always been an uphill task. Despite a Tour de France here and US Open tennis there with some premium golf thrown in for good via a dedicated golf channel.

    In most countries, unlike India, the business of sports broadcasting thrives on monopoly or most duopoly. Like in the UK with Sky Sports or in the US with Fox Sports and ESPN (NBC does make an occasional splash in the US with mega sporting properties like the recent Olympics coverage) or in Australia with Fox and Channel Nine.

    In India, three players in the sports broadcasting business – actually there’s a fourth in Nimbus, but it has retreated to being a niche player with a few sports – was a tad too much. SPN India had been gradually curating its sports telecast properties over the past 10 years or so – of which of course the premier one was the mega spinner IPL – and had launched a couple of channels, with ambitions to launch more. And then came the blinder of an announcement that SPN India was marshalling forces and getting into bed with the global sports heavyweight ESPN as it made efforts to make a comeback into sports television in India. This followed the annulment of its Star-ESPN joint venture (meant specifically for Asia) and the necessary cooling off period post its divorce from Star about a couple of years back.

    A three-way fight for Indian viewers despite 153 million TV households and growing was always going to be tough when Star was splurging money on sporting properties and the now Sony-ESPN joint venture brought to the table the expertise and deep pockets of two global media conglomerates.

    With the kind of financial muscle these two media heavyweight gorillas bring, Goenka and Chandra probably thought it would not be okay just being a member of the pack. And in such a scenario, it clearly makes business sense to cut one’s losses and get out. And if emotions have no business to be in business, then Zee getting out of the sports business makes more sense. Still, it must have been a tough call for Chandra and Punit to cut the cord.

    However, the sale deed has yet to be signed – ZEEL informed the BSE that it is in advanced discussions to sell its sports business to potential buyer(s). The ball is in the hands of Sony Pictures Television worldwide networks boss Andy Kaplan, SPN India CEO NP Singh and of course the two main players out on the green – Subhash Chandra and Punit Goenka. Keep watching this space!

    (SPN India and Zeel have since announced that they had reached an agreement on the buyout of Ten Sports. Read the announcement by clicking on the link below)

    SPN India acquires ZEEL’s Ten Sports for USD 385 mn
    http://www.indiantelevision.com/television/tv-channels/gecs/spn-india-acquires-zeels-ten-sports-for-usd-385-mn-160831

  • Ten Sports proposed sale: Biz acumen trumps emotions

    Ten Sports proposed sale: Biz acumen trumps emotions

    NEW DELHI: In business, emotions have importance, but they have to be weighed against the larger interest (of the company). This was Zee boss Subhash Chandra telling an eager journalist on the media beat for a business newspaper in the fag end of 90s after having just bought out Rupert Murdoch from three joint ventures in a cash-and-stock deal worth few shades less than $ 300 million.

    When an announcement came on 29 August 2016, almost 16 years and mega growth later, on the Bombay Stock Exchange from Zee Entertainment Enterprises Ltd (ZEEL) that in order to maximize shareholders returns, the company, while exploring various strategic options to start or exit businesses, is in an advanced stage of negotiations to sell off its sports business (carried out under the Ten Sports brand), it generated lot of hiccups all around. This despite the fact that the rumor about an impending sale had been going around for quite some time now.

    But to indiantelevision.com shedding off of a business that could — and is partially doing so, financial analysts opine — turn the company’s bottomline scarlet is classic Chandra. A risk taker to the core, he is equally quick to invest as he is to divest. Of course, at a price that makes sense. He has designed his group to be very bottom line focused and cut losses whenever things are not looking good.

    Though it could be argued that this time round the final call to exit the sports business in the face of rising content acquisition costs and inadequate proportionate revenues (India’s slow digitisation process has been hampering real-time growth in subscription earnings) must have been taken by Chandra’s eldest son helming ZEEL, Punit Goenka, a true chip off the old block.

    The speculated price for Ten Sports’ impending sale, acquired from its Dubai-based owner Abdul Rahman Bukhatir’s Taj Group in 2006, is around Rs 2,000 crore. The prospective buyer: Japan’s Sony group’s Sony Pictures Networks India (SPN India), presently headquartered in the US with its APAC head office in Singapore.

    If the Indian Premier League (IPL) cricket is now a phenomenon to reckon with in world sports, being compared with the likes of the money-spinning NBA, tennis and golf leagues, it had an ancestor in ICL (Indian Cricket League).

    Conceptualized by Zee with Chandra’s active backing, ICL in the mid-2000 era couldn’t flower like IPL, a property of the Indian cricket board. Reason: Zee and Chandra were on the wrong side of the Indian cricket bosses who refused to recognize ICL and also pressured the international cricket community to boycott it terming it an illegitimate affair. A lot of cloak and dagger followed with some associates and partners apparently letting him down as he sought to fulfill his passion and dream that sports television in India should be in the hands of Indians, rather than some foreign broadcasters as it is in other countries.

    And, then came Lalit Modi with his own blueprint for a cricket league about nine years back that’s now known as IPL and, along with Kaun Banega Crorepati (KBC), is one of the bigger revenue earners for the present broadcast rights holder SPN India. However, many argue that Modi simply polished Chandra’s ICL — an allegation that the now-banished Indian has always denied saying the IPL idea was much older than even ICL.

    ZEEL did make attempts to get the broadcast rights for the IPL too to boost revenues for its Ten Sports channels, but was out-batted and bowled by the Indian cricket bosses. Not to mention that in the meantime the acquisition cost of cricket rights related to anything Indian kept going north.

    In a cricket-crazy nation where advertisers pour in money in cricket (except probably the original domestic leagues like the Ranji and the Duleep Trophy that get much discounted rates from sponsors and broadcasters), Zee’s Ten Sports ventured out looking for cricket rights in places like Sri Lanka, Bangladesh, and Zimbabwe, which enthused sponsors less compared to, say, an India vs. Australia cricket series. Additionally, from time to time the Essel group announced that it would be putting together other cricket leagues, involving local Indian domestic teams or international ones. But apparently, that did not go well, either courtesy resistance from boards or the fact they ended up being commercially unviable.

    Though while announcing its financial results for the first quarter for FY 2017 ending June, Zee did mention that key properties on its sports channels during the April-June 2017 quarter included telecast of Zimbabwe vs. India cricket series, WI-Australia-SA cricket series, the UEFA Champions League football final and WWE among others. The sports business revenue in the first quarter of FY2017 was Rs 1,700 million, while the cost incurred in this quarter was Rs 1,529 million. Certainly a narrow gap that would tend to get narrower with former ally-turned-competitor Murdoch’s Star India investing aggressively in sports led by cricket rights.

    For Ten Sports to survive largely on properties that not only had limited appeal for viewers and, thus, Indian sponsors (considered one of the bigger spenders in the world of sports, especially cricket) it would have always been an uphill task. Despite a Tour de France here and US Open tennis there with some premium golf thrown in for good via a dedicated golf channel.

    In most countries, unlike India, the business of sports broadcasting thrives on monopoly or most duopoly. Like in the UK with Sky Sports or in the US with Fox Sports and ESPN (NBC does make an occasional splash in the US with mega sporting properties like the recent Olympics coverage) or in Australia with Fox and Channel Nine.

    In India, three players in the sports broadcasting business – actually there’s a fourth in Nimbus, but it has retreated to being a niche player with a few sports – was a tad too much. SPN India had been gradually curating its sports telecast properties over the past 10 years or so – of which of course the premier one was the mega spinner IPL – and had launched a couple of channels, with ambitions to launch more. And then came the blinder of an announcement that SPN India was marshalling forces and getting into bed with the global sports heavyweight ESPN as it made efforts to make a comeback into sports television in India. This followed the annulment of its Star-ESPN joint venture (meant specifically for Asia) and the necessary cooling off period post its divorce from Star about a couple of years back.

    A three-way fight for Indian viewers despite 153 million TV households and growing was always going to be tough when Star was splurging money on sporting properties and the now Sony-ESPN joint venture brought to the table the expertise and deep pockets of two global media conglomerates.

    With the kind of financial muscle these two media heavyweight gorillas bring, Goenka and Chandra probably thought it would not be okay just being a member of the pack. And in such a scenario, it clearly makes business sense to cut one’s losses and get out. And if emotions have no business to be in business, then Zee getting out of the sports business makes more sense. Still, it must have been a tough call for Chandra and Punit to cut the cord.

    However, the sale deed has yet to be signed – ZEEL informed the BSE that it is in advanced discussions to sell its sports business to potential buyer(s). The ball is in the hands of Sony Pictures Television worldwide networks boss Andy Kaplan, SPN India CEO NP Singh and of course the two main players out on the green – Subhash Chandra and Punit Goenka. Keep watching this space!

    (SPN India and Zeel have since announced that they had reached an agreement on the buyout of Ten Sports. Read the announcement by clicking on the link below)

    SPN India acquires ZEEL’s Ten Sports for USD 385 mn
    http://www.indiantelevision.com/television/tv-channels/gecs/spn-india-acquires-zeels-ten-sports-for-usd-385-mn-160831