ITV

Tag: Ronnie Screwvala

  • UTV plans to own 49% in UTVi holding firm

    UTV plans to own 49% in UTVi holding firm

    MUMBAI: UTV Software Communications, an integrated media company owned 59.9 per cent by The Walt Disney Company, plans to buy a 49 per cent stake in a special purpose vehicle, which would own UTVi, the business news channel owned and founded by Ronnie Screwvala and his affiliates.

    The decision follows the amendments to the foreign direct investment (FDI) guidelines in February 2009 on calculation of direct and indirect foreign shareholding in Indian companies. The changed guidelines consider investment by a company registered in India in a subsidiary as domestic shareholding as long as the company is majority owned by Indian shareholders.

    Screwvala and his affiliates will own the balance 51 per cent in the Indian Special Purpose Vehicle Company as the resident Indian and founder promoter of the business news channel.

    The board of UTV Software has taken an in principle decision to invest up to 49 per cent in the special purpose vehicle, the company said in a notice to the Bombay Stock Exchange. It will immediately get an independent valuation done of UTVi and have it submitted to the board within four weeks.

    Screwvala had earlier told Indiantelevision.com that UTV Software would acquire a 20 per cent stake in UTVi for $10 million. “The business news channel will get funding from UTV Software Communications and the promoter group,” Screwvala had said.

    However, it could not be confirmed if UTVi had gone ahead with the transaction. The new FDI guidelines would allow The Walt Disney to own up to a maximum of 26 per cent in UTVi in addition to a 49 per cent stake in the special purpose vehicle.

  • ‘Going global is a key part of our TV content scale up plan’ : Ajit Thakur – UTV Television COO

    ‘Going global is a key part of our TV content scale up plan’ : Ajit Thakur – UTV Television COO

    With industry pundits expecting the television content industry to explode from Rs 14 billion to Rs 30 billion over the next two years, UTV Software Communications is laying the foundation to ride on this boom.

    Having slipped in the television content production business over the years, UTV’s revival strategy includes holding IPR rights for some of the content that it creates, working out a genre-specific approach, and striking partnerships with other production houses.

    The Ronnie Screwvala promoted company, which has set the pace for the Bollywood industry, is readying to develop formats and content that can travel across the globe.

    In an interview with Indiantelevision.com’s Sibabrata Das & Anindita Sarkar, UTV Television COO Ajit Thakur explains how the company plans to scale up its content business.

    Excerpts:

    Why is it that UTV’s television content production business slipped over the years?
    A few years back, production houses started emerging as specialist content providers. While Hats Off Productions mastered comedies, Fire Works started working on thrillers and Synergy specialised in format shows.

    UTV did not take steps in this direction. We didn’t have a genre-specific approach, but continued to do a number of things. Also, good talent was lacking in the industry.

    Is UTV going to focus on specific genres as part of its revival strategy?
    Our key focus now is to specialise in different genres and develop formats for which we can hold the IPR. We have identified a need gap in reality formats and have gone into it. We are also looking at formats and content that can travel in the global marketplace. We are clear that we want to hold the rights to some of our content. That is what keeps international content companies like Endemol and FremantleMedia in strong financial health; about 70 per cent of their turnover comes from 3-4 big shows.

    Which is why you are interested in creating a property like Gandhi?
    Exactly. If you do not hold the IPR to the big properties that you create, you will never be able to cushion yourself from the cyclic downturns that every creative content company goes through. The current structure of the broadcasting business is such that there is no value model for the production houses. We are out to change that. As part of that ambition, we are producing Gandhi for India as well as the world.

    How much will the fund requirement be for this project and are you planning to strike a deal with an international broadcaster ahead of production as a de-risk strategy?
    We will have to get there, no matter what it takes. We are creating an internal research team and will have a panel of Indian and international historians. Most of the creative team will not be from the television but the film industry. We will have writers from Bollywood and the West. Since we are sure that the content will travel, we are producing it in Hindi as well as in the English language. We are in talks with US and UK broadcasters.

    Will you hold the IPR for the Indian market as well?
    We will hold the global rights while selling the Hindi version of the drama series to an Indian broadcaster. Once we have a definite fix on the story board and zero in on the cast, we will know about the costs. We haven’t worked out the budget yet but are prepared to spend on the project. It is easy to go to the Middle East and South East Asian markets. We want our content to travel to the US, UK and European markets.
    ‘If content firms do not hold the IPR, they will never be able to cushion themselves from cyclic downturns‘

    How will the basic revenue flow from the content supply to local broadcasters be taken care of?
    There is a business opportunity in soaps, reality, mythology and fantasy content. For starters, we have hit on the reality genre. We have set up the team for it and have produced EK Se Badhkar Ek for Zee TV. We will be replacing it with another reality show for the same channel. We will have Ek Khiladi Ek Hasina, a weekly dance reality show which has six leading cricketers as participants, on Colors. The game show, Cash Cab, has been developed by us on a licensed format, originally produced by Lion Television for ITV. Bindaas will be airing it from 15 September.

    We see the reality genre having the potential to travel to overseas markets as well. Our aim is to produce six reality shows by the end of this fiscal.

    Our next look will be in fiction and we will take a genre-specific approach. In fact, every six months we will get into a new genre and consolidate in that space.

    What are the genres that carry an opportunity for UTV and could be tapped?
    We are definitely not looking at the saas-bahu genre as the audience for this segment is steadily diminishing. There are thriller, comedy, fantasy and mythology genres. There is enough scope for period dramas too.

    UTV has got into co-production partnerships with different local production houses. Isn’t this the beginning of a new trend, much like what has happened in the movie business?
    Our aim is to be among the top two TV content producers in the Indian market. One way of getting there is by creating partnerships with other production houses who have a distinct content flavour. We have equal joint ventures with three players and are looking at other proposals. We have JVs with Smriti Irani Television Ltd (SITL), Windmill Entertainment with Shekhar Suman, and another with Rajesh Beri. On the Gandhi project, we are doing it with SITL.

    Going global, of course, is a key part of the scale up plan. We have another big project coming up which we feel we can take to the global arena.

    Hasn’t UTV recently started getting into TV content production in the southern languages?
    We were earlier doing only airtime sales for the Sun TV network. But recently we have got into production as well and are doing a show for Sun TV (Tamil) and Gemini (Telugu). It is not a big revenue earner for us, but is more of strategic value. Since we were doing airtime sales, it was a logical step for us to integrate it with our creative resources. Once we have 5-6 shows on Sun, it can be a big step for us.

    In a unique deal, UTV paid a minimum guarantee to NDTV Imagine for Ramayan and syndicated it to the Sun TV network of channels. Will we see more such deals?
    We are close to signing up with a broadcaster for another mythology and syndicating that content down south.

  • UTV plans business news channel

    MUMBAI: UTV is planning to launch a business news channel, industry sources say. The company has already announced its broadcast initiatives which will kick off with its youth centric Hindi GEC Bindass.

    UTV is in talks with a couple of international broadcasters and financial investors for the business news channel venture, say sources.

    Many foreign broadcasters are eyeing India as an important destination in their expansion plan. Disney’s 24-hour news channel ABC News Now has expressed plans to enter India.

    UTV CEO Ronnie Screwvala was not available for comment.

    UTV has already announced plans to launch a slew of eight to 10 channels, including in the niche and variety special genre. Bindass is a 50:50 joint venture with Malaysia-based Astro.

  • UTV targets June launch of youth channel with Astro

    UTV targets June launch of youth channel with Astro

    MUMBAI: UTV Software Communications’ joint venture with Astro of Malaysia is fast taking shape. The youth-centric channel, aimed at the age-group of 17-25 years, is set for launch by June.

    “We are working on the content research. We plan to launch the channel by June,” says UTV Communications COO Ronald D’Mello.

    UTV will be investing Rs 1 billion in its 50:50 venture with Astro in broadcasting.

    “We will be expanding to a 360 degree entertainment venture including a TV channel as the anchor, to be flanked by activities on the internet, new media, ground events, merchandising and licensing,” says D’Mello.

    UTV will be releasing DVDs of Don and Khosla Ka Ghosla this quarter. Namesake will have an international and national release in the third week of March.

    UTV has posted a consolidated revenue of Rs 704 million, which includes capital gains of Rs 263 million from the sale of United Home Entertainment Ltd (Hungama TV), for the third quarter ended 31 December 2006.

    Net profit stood at Rs 283 million while EBITDA was at Rs 303 million for the period. The company has consolidated the financials of UESL, UTV-US, UTV-UK and UTV-Mauritius.
    UTV also announced an interim dividend of 25 per cent.

    Commenting on the results UTV CEO Ronnie Screwvala said, “The quarter has been a very eventful one; while the Hungama TV deal with The Walt Disney Company was consummated during the quarter, the Company also decided to make investments in two gaming companies – Ignition Entertainment and Indiagames Ltd in console and mobile space respectively. With these proposed investments UTV has acquired worldwide capabilities of content creation and distribution across all gaming platforms.”

    UTV has entered into exclusive sales and marketing tie up with Radaan Media, the largest TV production house in South India. “This will result in significant growth in Television businesses in the months to come. In addition to this and as a step towards entering the South Indian film production space, UTV has tied up with Radaan for co-production of all South Indian films,” Screwvala added.

    UTV is acquiring a 70 per cent stake in Ignition Entertainment Ltd (UK based company with interests in console game development, publishing and distribution across the globe) as well as a controlling stake in IndiaGames (gaming company in India, with interests in mobile and online gaming) for a total consideration of Rs 1.28 billion.

    UTV has inducted Walt Disney International president Andy Bird and Pantaloon’s Kishore Biyani as non executive directors.

  • UTV launching youth-centric entertainment channel in JV with Astro

    UTV launching youth-centric entertainment channel in JV with Astro

    MUMBAI: Ronnie Screwvala has swung back into action. After selling off kids channel Hungama TV to Walt Disney in July, he is making a re-entry into the broadcasting space.

    Screwvala’s UTV Software Communications Ltd. is forming a 50:50 joint venture with Malaysia-based Astro for launching a Hindi general entertainment channel (GEC) aimed at the youth. An investment of Rs 2 billion will be earmarked towards this.

    The new venture will operate across multiple platforms, including a television channel, gaming, mobile, licensing and merchandising, ground events and the internet.

    The first television channel in Hindi is slated for launch in the second quarter of 2007, supported by a huge multimedia campaign and multi-city ground events. UTV is currently conducting extensive research on this target group as an input to its programming and marketing designs.

    The plans for the venture include the launch of multiple channels across languages in India and Southeast Asia. UTV had earlier entered into a business co-operation arrangement with Astro to set up kids channels in Malaysia and Indonesia, which launched on the Astro platform earlier this year.

    Screwvala is looking at creating a channel targeted at audiences between the age group of 15-25 years. In Hungama TV, the core audience was 4-14 years.

    Walt Disney has acquired 14.9 per cent stake in UTV, offering the multinational giant to participate in expansion opportunities in India. With the buyout of local Hindi channel Hungama TV in a combined purchase deal, Disney has already consolidated its position in the kids segment.

    UTV recently received the FIPB (Foreign Investment Promotion Board) and other regulatory approvals for the sale of stake to Walt Disney. It may be recalled that Astro had signed the MoU with UTV to acquire 26 per cent in Hungama TV but with Disney later making a combined purchase offer, the deal didn’t sail through.

    Astro has ambitious plans in India and, along with Value Labs and NDTV, bought out the operations of Radio Today, the radio division of Living Media Group, which runs under the Red FM brand.

    The GEC segment is poised to see further activity with NDTV planning to make an entry. Star Plus continues to lead the space but is being challenged by Zee Telefilms. Sony TV hopes to stage a comeback with Big Boss.

    Screwvala’s attempt, analysts say, will be to carve out a specific target audience as he so successfully did in the kids space.

    Meanwhile, Disney’s acquisition of Hungama TV has concluded with the final approval from the FIPB. This was followed by the inflow of Rs 1.4 billion ($ 31.125 million) from Disney to UTV within a week. Disney has also invested Rs 670 million ($ 14.5 million) towards a 14.9 per cent stake in UTV. The two companies are now working out synergies in areas across television content production, movie production and broadcasting.

    “We will be working along with Disney in the areas of TV, animation and movies,” says UTV CEO Ronnie Screwvala.

    Areas of common involvement have been identified including the launch of niche channels, movie co-productions and television content creation by UTV for Disney channels.

    UTV scrip slipped 2.7 per cent in the BSE to end today at Rs 258.70.

  • UTV Classics to promote alternative cinema

    UTV Classics to promote alternative cinema

    MUMBAI: UTV Motion Pictures has launched a sub-brand called UTV Classics, which will promote experimental and unconventional cinema, making it accessible to a wider audience.
    The first film to be released under the banner will be Vishal Bhardwaj’s The Blue Umbrella, which will be released on 5 January 2007, asserts an official release.

    The film is based on a Ruskin Bond’s novel by the same name and aims at adding a new dimension to today’s genre of kids’ films by combining entertainment with a morality tale. The Blue Umbrella stars Pankaj Kapur and Shreya Sharma. The movie has already been screened at a few international film festivals.

    UTV CEO Ronnie Screwvala said, “The entertainment tastes of a section of the audience are maturing with time and UTV Classics is an initiative to address the needs of this growing audience for different cinema. 2006 has been proof of this, with unconventional movies that have broken the mould and which have been applauded by audiences and critics alike.”

  • Where goest the broadcast bill?

    Where goest the broadcast bill?

    The fate of the broadcast bill hangs on a razor’s edge, despite Braodcast Minister Arun Jaitley’s pledge to table it in the surrent budget session of parliament.

    Lobbying for the Broadcast bill is expected to reach fever pitch after March during the Budget session recess. The broadcasters lobby group, The Indian Broadcast Foundation has set up three committees for the purpose. Discovery India’s Kiran Karnik, News Television India’s Peter Mukherjee and Urmila Gupta, and Sony Entertainment Television’s Kunal Dasgupta are looking at convergence and spectrum allocation issues. ESPN’s Manu Sawney and Turner International’s Anshuman Misra are reviewing technology convergence, especially the last mile infrastructure.

    Content provider UTV’s Ronnie Screwvala and Khursheeda Mody, Nimbus Communications Harish Thawani and MTV India’s Alex Kuruvilla are looking at Internet regulatory issues. Three government committees are also reviewing critical areas in the bill.

    Jaitley expects to reach a consensus during the recess before tabling the bill in parliament. Some analysts believe that foreign equity in cross media holding and DTH may not form a part of the bill, plagued by opposing political viewpoints. Others indicate that the bill may be tabled, but will go into a sub committee for further review.

  • Disney deal: UTV receives first tranche of Rs 692 mn

    Disney deal: UTV receives first tranche of Rs 692 mn

    MUMBAI: UTV Software Communications has received Rs 692 million as the first tranche of payment from The Walt Disney Company (Southeast Asia) Pte Ltd. With this transaction, the strategic investment into UTV from The Walt Disney Company stands executed.

    In July this year, Disney had 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, UTV would get a combined $ 44.5 million from the stake sale.

    In pursuance to the deal, UTV has now allotted 34, 00,000 equity shares of Rs 10 each at an issue price of Rs 192.50 per share to Disney. The approval for the same was granted by the members at their annual general meeting held on 24 August, 2006, as per an official release. Disney also announced the allotment of 19, 49,360 warrants to Ronnie Screwvala, founder and promoter of UTV.

  • UTV Q1 revenue up 7% at Rs 523 million

    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

    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