ITV

Tag: Rupert Murdoch

  • 21st Century Fox buys out Sky in USD 14.8-bn deal

    21st Century Fox buys out Sky in USD 14.8-bn deal

    MUMBAI: 21st Century Fox has stated that Sky had agreed to a takeover offer worth USD 14.8 billion as the media tycoon Rupert Murdoch attempts to create a global media giant stretch across the U.K., U.S, and Europe.

    21st Century Fox is one of the world’s largest entertainment companies, with a broad portfolio of broadcast, cable, pay TV, film, and satellite assets across six continents.

    Fox group said in a statement that it had reached an agreement with Sky plc on the terms of a recommended pre-conditional cash offer to buy the rest of the European pay broadcaster, beyond the 39 per cent it already owns. The deal is worth USD 14.8 billion (Rs 1004 billion) in total for the cash purchase, the statement said. The terms of the formal offer, Sky News stated, would mean Fox paying 10.75 pounds per Sky share, for the remainder 61% of Sky.

    The new deal will create an improved balance between affiliate fee, subscription, advertising and content revenues.

    Fox’ cable and broadcasting properties include include STAR India, Fox News Channel, Fox Business Network, FOX, National Geographic Channels, 28 television stations in the U.S and over 300 international channels.

  • 21st Century Fox buys out Sky in USD 14.8-bn deal

    21st Century Fox buys out Sky in USD 14.8-bn deal

    MUMBAI: 21st Century Fox has stated that Sky had agreed to a takeover offer worth USD 14.8 billion as the media tycoon Rupert Murdoch attempts to create a global media giant stretch across the U.K., U.S, and Europe.

    21st Century Fox is one of the world’s largest entertainment companies, with a broad portfolio of broadcast, cable, pay TV, film, and satellite assets across six continents.

    Fox group said in a statement that it had reached an agreement with Sky plc on the terms of a recommended pre-conditional cash offer to buy the rest of the European pay broadcaster, beyond the 39 per cent it already owns. The deal is worth USD 14.8 billion (Rs 1004 billion) in total for the cash purchase, the statement said. The terms of the formal offer, Sky News stated, would mean Fox paying 10.75 pounds per Sky share, for the remainder 61% of Sky.

    The new deal will create an improved balance between affiliate fee, subscription, advertising and content revenues.

    Fox’ cable and broadcasting properties include include STAR India, Fox News Channel, Fox Business Network, FOX, National Geographic Channels, 28 television stations in the U.S and over 300 international channels.

  • India’s second radio operator MBL seeks to list

    India’s second radio operator MBL seeks to list

    MUMBAI: Music Broadcast Ltd (MBL), the FM radio unit of the media house Jagran Prakashan backed by the private equity giant Blackstone, on Monday, filed draft documents with the capital markets regulator Securities and Exchange Board of India for an initial public offering.

    ICICI Securities is the sole financial adviser for the issue. The IPO will comprise of a fresh issue aggregating upto Rs. 4,000 million (Rs 400 crore) and an offer for sale of up to 2,658,518 equity shares by certain existing shareholders of MBL. JPL is not selling any of its shareholding in MBL under the offer for sale portion.

    MBL will be the second radio operator to list on BSE after Times Group’s Entertainment Network India Ltd, which runs Radio Mirchi, India’s top FM radio business label.

    Jagran entered the radio segment with the acquisition of Music Broadcast Pvt Ltd in December 2014 from Rupert Murdoch-controlled 21st Century Fox’s Star Group and the private equity company India Value Fund Advisors.

    The company plans to use the proceeds to redeem non-convertible debentures, repay inter-corporate deposits as well as for general corporate purposes.

    MBL has a presence in 29 cities. Its radio stations include eight Radio Mantra stations. The company says its radio stations reached out to 49.60 million listeners in 23 cities covered by AZ Research as on 31 March 2016.

  • India’s second radio operator MBL seeks to list

    India’s second radio operator MBL seeks to list

    MUMBAI: Music Broadcast Ltd (MBL), the FM radio unit of the media house Jagran Prakashan backed by the private equity giant Blackstone, on Monday, filed draft documents with the capital markets regulator Securities and Exchange Board of India for an initial public offering.

    ICICI Securities is the sole financial adviser for the issue. The IPO will comprise of a fresh issue aggregating upto Rs. 4,000 million (Rs 400 crore) and an offer for sale of up to 2,658,518 equity shares by certain existing shareholders of MBL. JPL is not selling any of its shareholding in MBL under the offer for sale portion.

    MBL will be the second radio operator to list on BSE after Times Group’s Entertainment Network India Ltd, which runs Radio Mirchi, India’s top FM radio business label.

    Jagran entered the radio segment with the acquisition of Music Broadcast Pvt Ltd in December 2014 from Rupert Murdoch-controlled 21st Century Fox’s Star Group and the private equity company India Value Fund Advisors.

    The company plans to use the proceeds to redeem non-convertible debentures, repay inter-corporate deposits as well as for general corporate purposes.

    MBL has a presence in 29 cities. Its radio stations include eight Radio Mantra stations. The company says its radio stations reached out to 49.60 million listeners in 23 cities covered by AZ Research as on 31 March 2016.

  • Star India impacts 21st Century Fox Q1-17 numbers

    Star India impacts 21st Century Fox Q1-17 numbers

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (21st Century Fox) reported 7.1 per cent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its first quarter ended 30 September 2016 (Q1-17, current quarter). Twenty-First Century Fox reported consolidated revenue of $6,506 million in the current quarter as compared to $6,077 million in the corresponding year-ago quarter.

    This revenue growth reflects increase in affiliate fee revenue which was primarily attributable to higher average rates per subscriber across most channels, and the increase in content revenue was led by higher subscription video-on demand (SVOD) revenue from television productions says the company.

    The company’s Operating Income before Depreciation and Amortization (OIBDA) increased 16.7 percent in Q1-17 to $1,791 million from $1,535 million in Q1-16.

    Twenty-First Century has three segments – Cable Network Programming, Television and Filmed Entertainment.

    Cable Network Programming

    Cable Network Programming revenue in the current quarter increased 10 percent y-o-y in the current quarter to $3,810 million from $3,464 million. The segment’s Operating Income before Depreciation and Amortization (OIBDA)increased six per cent y-o-y to $1,384 million from $1,306 million.

    Cable Network Programming has three sub-segments – Affiliate Fees; Advertising; ‘Content and Other’.

    Star India’s contribution

    Twenty-First Century Fox says that International affiliate fee revenue from its segment Cable Network Programming increased as a result of 16 per cent local currency growth, led by additional subscribers, higher rates and new channels in Latin America and Europe at Fox Networks Group International (FNGI) and increases at Star India, partially offset by the adverse impact of the strengthening of the U.S. dollar against local currencies. For Q1-17, international advertising revenue increased as a result of 11 per cent local currency growth, led by the broadcast of the Rio Olympics in fiscal 2017 at FNGI and Star India and higher volume and pricing at Star India’s general entertainment and sports channels, partially offset by the adverse impact of the strengthening of the US dollar against local currencies.

    “Star India’s advertising revenues returned to double digit year-over-year growth on a constant currency basis and we continue to see exceptional growth of our mobile video platform Hotstar,” said James Murdoch during a earnings call on the latest earnings. “Between June and October, average watch time doubled on the platform and minutes viewed is currently more than double, all the mainstream competitors combined and more than 10X the watch time of Netflix, which launched in India earlier this year.”

    The increase in international content and other revenues Q1-17, as compared to the corresponding period of fiscal 2016, was primarily due to higher network and syndication sales in Latin America and Europe at FNGI.

    International channels OIBDA decreased seven per cent, as compared to the corresponding period of fiscal 2016, primarily due to the local currency revenue increases noted above being more than offset by higher expenses an the adverse impact of the strengthening of the US dollar against local currencies. Operating expenses increased by approximately $110 million, for Q1-17, as compared Q1-16, primarily due to the broadcast of the Rio Olympics in fiscal 2017 and increased sports programming rights amortization, including soccer rights at FNGI and cricket rights at Star India.

    James Murdoch responded to a question during the investor call about the IPL rights and other sports properties that the Star Network is developing in India by saying: “..on the IPL, I think it is well known that there’s a – it’s well known that it’s very unclear when those rights will come to market. There has been a delay in that process. But I would say, look with respect to the Indian business we obviously look at different rights packages as they come up, we have really grown the breadth of that business in terms of sports with BCCI domestic cricket contract as well as the growth in Kabbadi and the Indian Super League, so it is really a broad business there and new rights come up where we always will have a look at. There is nothing at this point I can see in the outcome of those things that would deter it from the medium term target that we have laid out for profit growth at Star which were pacing towards pretty well, so we feel confident about that.”

    Domestic (US) Channels

    For Q1-17, Cable Network Programming’s domestic affiliate fee revenue increased primarily due to higher average rates per subscriber led by the

    Regional Sports Networks (RSNs), FX Networks and Fox News Channel (Fox News) partially offset by lower average subscribers.

    For Q1-7, domestic advertising revenue increased primarily due to higher pricing and ratings at Fox News. The increase in domestic content and other revenues for the Q1-17, as compared to the corresponding period of fiscal
    2016, was primarily due to the effect of the acquisition of the NGS Media Business.

    Domestic channels OIBDA increased nine per cent, as compared to the corresponding period of fiscal 2016, primarily due to the revenue increases noted above partially offset by higher expenses which were due to primarily due to the acquisition of the NGS Media Business and higher programming costs, including increased Major League Baseball(MLB) rights amortization at the RSNs and higher entertainment programming amortization at FX Networks.

    Television

    For Q1-17, revenues at the Television segment remained relatively constant, as compared Q1-16 (down one per cent y-o-y in Q1-17 at $1,038 million from $1,049 million), primarily due to higher affiliate fee and content revenues offset by lower advertising revenue. Affiliate fee revenue increased 18 per cent in Q1-17, as compared
    Q1-16, as a result of higher retransmission consent rates. Content and other revenues increased 55 per cent for Q1-17 as compared to Q1-16, primarily as a result of higher SVOD revenue at FOX.

    Television Advertising revenue decreased 11 per cent in Q1-7, as compared to Q1-16, primarily due to lower local advertising resulting from the broadcast of the Rio Olympics on a competitor network, the absence of the Emmy Awards and the Fédération Internationale de Football Association (FIFA) Women’s World Cup events and lower general entertainment ratings at FOX. Partially offsetting these decreases was higher political advertising revenue primarily related to the 2016 presidential election in the US.

    Television segment OIBDA in Q1-7 decreased 2.7 per cent y-o-y to $191 million from $196 million.

    Filmed Entertainment

    Filmed Entertainment revenues increased 6.8 per cent in Q1-17 as compared to Q2-16 to $1,907 million from $1,785 million primarily due to higher SVOD revenue from television productions, led by the licensing of Homeland to Hulu, and higher worldwide theatrical revenue partially offset by lower home entertainment revenue from motion picture productions. For Q1-17, revenues included the worldwide theatrical performance of Ice Age: Collision Course and Independence Day: Resurgence, *as compared to Q1-16, which included the worldwide theatrical releases of Maze Runner: The Scorch Trials and Fantastic Four and the home entertainment release of *Home*.

    In Q1-15, segment OIBDA at the Filmed Entertainment segment more than double (increased $162 million by 2.09 times) to $311 million from $149 million due to the revenue increases noted above and lower expenses of $40 million, or two per cent, as compared to Q1-16. Operating expenses decreased by approximately $20 million for the three months ended September 30, 2016, as compared to the corresponding period of fiscal 2016, primarily due to lower marketing costs due to the mix of theatrical and home entertainment releases in the current quarter compared to the prior year partially offset by higher production amortization and participation costs related to television productions.

    Company speak

    Commenting on the results, Century Fox executive chairmen Rupert and Lachlan Murdoch said, “We delivered a strong quarter, growing our earnings by double digits on solid revenue gains. Whether it was Fox News rating # in basic cable, the 27 primetime Emmy Awards between FX Networks and FOX Broadcasting, producing three of the top five
    scripted shows on television, or our robust international growth, we demonstrated strong operational momentum across our global businesses.”

  • Star India impacts 21st Century Fox Q1-17 numbers

    Star India impacts 21st Century Fox Q1-17 numbers

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (21st Century Fox) reported 7.1 per cent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its first quarter ended 30 September 2016 (Q1-17, current quarter). Twenty-First Century Fox reported consolidated revenue of $6,506 million in the current quarter as compared to $6,077 million in the corresponding year-ago quarter.

    This revenue growth reflects increase in affiliate fee revenue which was primarily attributable to higher average rates per subscriber across most channels, and the increase in content revenue was led by higher subscription video-on demand (SVOD) revenue from television productions says the company.

    The company’s Operating Income before Depreciation and Amortization (OIBDA) increased 16.7 percent in Q1-17 to $1,791 million from $1,535 million in Q1-16.

    Twenty-First Century has three segments – Cable Network Programming, Television and Filmed Entertainment.

    Cable Network Programming

    Cable Network Programming revenue in the current quarter increased 10 percent y-o-y in the current quarter to $3,810 million from $3,464 million. The segment’s Operating Income before Depreciation and Amortization (OIBDA)increased six per cent y-o-y to $1,384 million from $1,306 million.

    Cable Network Programming has three sub-segments – Affiliate Fees; Advertising; ‘Content and Other’.

    Star India’s contribution

    Twenty-First Century Fox says that International affiliate fee revenue from its segment Cable Network Programming increased as a result of 16 per cent local currency growth, led by additional subscribers, higher rates and new channels in Latin America and Europe at Fox Networks Group International (FNGI) and increases at Star India, partially offset by the adverse impact of the strengthening of the U.S. dollar against local currencies. For Q1-17, international advertising revenue increased as a result of 11 per cent local currency growth, led by the broadcast of the Rio Olympics in fiscal 2017 at FNGI and Star India and higher volume and pricing at Star India’s general entertainment and sports channels, partially offset by the adverse impact of the strengthening of the US dollar against local currencies.

    “Star India’s advertising revenues returned to double digit year-over-year growth on a constant currency basis and we continue to see exceptional growth of our mobile video platform Hotstar,” said James Murdoch during a earnings call on the latest earnings. “Between June and October, average watch time doubled on the platform and minutes viewed is currently more than double, all the mainstream competitors combined and more than 10X the watch time of Netflix, which launched in India earlier this year.”

    The increase in international content and other revenues Q1-17, as compared to the corresponding period of fiscal 2016, was primarily due to higher network and syndication sales in Latin America and Europe at FNGI.

    International channels OIBDA decreased seven per cent, as compared to the corresponding period of fiscal 2016, primarily due to the local currency revenue increases noted above being more than offset by higher expenses an the adverse impact of the strengthening of the US dollar against local currencies. Operating expenses increased by approximately $110 million, for Q1-17, as compared Q1-16, primarily due to the broadcast of the Rio Olympics in fiscal 2017 and increased sports programming rights amortization, including soccer rights at FNGI and cricket rights at Star India.

    James Murdoch responded to a question during the investor call about the IPL rights and other sports properties that the Star Network is developing in India by saying: “..on the IPL, I think it is well known that there’s a – it’s well known that it’s very unclear when those rights will come to market. There has been a delay in that process. But I would say, look with respect to the Indian business we obviously look at different rights packages as they come up, we have really grown the breadth of that business in terms of sports with BCCI domestic cricket contract as well as the growth in Kabbadi and the Indian Super League, so it is really a broad business there and new rights come up where we always will have a look at. There is nothing at this point I can see in the outcome of those things that would deter it from the medium term target that we have laid out for profit growth at Star which were pacing towards pretty well, so we feel confident about that.”

    Domestic (US) Channels

    For Q1-17, Cable Network Programming’s domestic affiliate fee revenue increased primarily due to higher average rates per subscriber led by the

    Regional Sports Networks (RSNs), FX Networks and Fox News Channel (Fox News) partially offset by lower average subscribers.

    For Q1-7, domestic advertising revenue increased primarily due to higher pricing and ratings at Fox News. The increase in domestic content and other revenues for the Q1-17, as compared to the corresponding period of fiscal
    2016, was primarily due to the effect of the acquisition of the NGS Media Business.

    Domestic channels OIBDA increased nine per cent, as compared to the corresponding period of fiscal 2016, primarily due to the revenue increases noted above partially offset by higher expenses which were due to primarily due to the acquisition of the NGS Media Business and higher programming costs, including increased Major League Baseball(MLB) rights amortization at the RSNs and higher entertainment programming amortization at FX Networks.

    Television

    For Q1-17, revenues at the Television segment remained relatively constant, as compared Q1-16 (down one per cent y-o-y in Q1-17 at $1,038 million from $1,049 million), primarily due to higher affiliate fee and content revenues offset by lower advertising revenue. Affiliate fee revenue increased 18 per cent in Q1-17, as compared
    Q1-16, as a result of higher retransmission consent rates. Content and other revenues increased 55 per cent for Q1-17 as compared to Q1-16, primarily as a result of higher SVOD revenue at FOX.

    Television Advertising revenue decreased 11 per cent in Q1-7, as compared to Q1-16, primarily due to lower local advertising resulting from the broadcast of the Rio Olympics on a competitor network, the absence of the Emmy Awards and the Fédération Internationale de Football Association (FIFA) Women’s World Cup events and lower general entertainment ratings at FOX. Partially offsetting these decreases was higher political advertising revenue primarily related to the 2016 presidential election in the US.

    Television segment OIBDA in Q1-7 decreased 2.7 per cent y-o-y to $191 million from $196 million.

    Filmed Entertainment

    Filmed Entertainment revenues increased 6.8 per cent in Q1-17 as compared to Q2-16 to $1,907 million from $1,785 million primarily due to higher SVOD revenue from television productions, led by the licensing of Homeland to Hulu, and higher worldwide theatrical revenue partially offset by lower home entertainment revenue from motion picture productions. For Q1-17, revenues included the worldwide theatrical performance of Ice Age: Collision Course and Independence Day: Resurgence, *as compared to Q1-16, which included the worldwide theatrical releases of Maze Runner: The Scorch Trials and Fantastic Four and the home entertainment release of *Home*.

    In Q1-15, segment OIBDA at the Filmed Entertainment segment more than double (increased $162 million by 2.09 times) to $311 million from $149 million due to the revenue increases noted above and lower expenses of $40 million, or two per cent, as compared to Q1-16. Operating expenses decreased by approximately $20 million for the three months ended September 30, 2016, as compared to the corresponding period of fiscal 2016, primarily due to lower marketing costs due to the mix of theatrical and home entertainment releases in the current quarter compared to the prior year partially offset by higher production amortization and participation costs related to television productions.

    Company speak

    Commenting on the results, Century Fox executive chairmen Rupert and Lachlan Murdoch said, “We delivered a strong quarter, growing our earnings by double digits on solid revenue gains. Whether it was Fox News rating # in basic cable, the 27 primetime Emmy Awards between FX Networks and FOX Broadcasting, producing three of the top five
    scripted shows on television, or our robust international growth, we demonstrated strong operational momentum across our global businesses.”

  • 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

  • Roger Ailes steps down as Fox News chairman & CEO

    Roger Ailes steps down as Fox News chairman & CEO

    MUMBAI: The Murdoch family-promoted 21st Century Fox has announced Roger Ailes has stepped down as chairman and CEO of Fox News and resigned from Fox Business Network and Fox Television Stations, effective immediately.

    Rupert Murdoch, Executive Chairman of 21st Century Fox, will assume the role of Chairman and acting CEO of Fox News Channel and Fox Business Network.

    It’s a stunning fall for Ailes, a long time political operative and Murdoch ally, who is credited with building Fox News and leading the cable channel to ratings dominance.

    In a statement released to the media last week, Rupert Murdoch said: “I am personally committed to ensuring that Fox News remains a distinctive, powerful voice. Our nation (the US) needs a robust Fox News to resonate from every corner of the country.”

    Murdoch will be assisted in running the Fox businesses by existing management team under Bill Shine, Jay Wallace and Mark Kranz.
    Ailes, 76, was in the eye of the storm having been accused of sexual harassment in a lawsuit filed earlier this month by former Fox News host Gretchen Carlson.

    Though Ailes has vigorously denied Carlson’s claims, Fox News launched an internal investigation. The developments, critics and media observers claim, was a result of public and political pressure and perception.

    “Roger Ailes has made a remarkable contribution to our company and our country. Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years,” the company statement quoted Murdoch as saying.

    In a letter to Murdoch, released by a publicist, Ailes said, “I am proud of our accomplishments and look forward to continuing to work with you as an adviser in building 21st Century Fox.”

    “We join our father in recognizing Roger’s remarkable contributions to our company,” a joint statement from Murdoch’s two sons, Lachlan and James, said. The sons are in charge in charge of Fox News.
    Ailes began his television career in the early 1960s as a producer at The Mike Douglas Show in Cleveland, and went onto serve as media consultant for several Republican presidents, including Richard Nixon and Ronald Reagan.

    “I take particular pride in the role that I have played advancing the careers of the many women I have promoted to executive and on-air positions,” Ailes wrote in the letter to Murdoch, adding that many of these talented journalists have deservedly become household names known for their intelligence and strength whether reporting the news, fair and balanced, and offering exciting opinions on opinion programmes.

    In his defence, Ailes further stated in the letter that Fox News has become No. 1 in all of cable because he “identified and promoted the most talented men and women in television, and they performed at the highest levels.”

    In 1996, Murdoch, seeing a market for a conservative cable news outlet, hired Ailes to create Fox News. And Ailes moulded the network to run like a political campaign operation with primetime shows that were unabashedly conservative and hosts who openly espoused Republican talking points.

    The network eventually unseated CNN as the highest rated cable news network and became one of the most popular cable networks of all genres, reaching more than 90 million households.

    “It is always difficult to create a channel or a publication from the ground up and against seemingly entrenched monopolies,” Murdoch Sr. said, adding, “To lead a flourishing news channel, and to build Fox Business, Roger has defied the odds.”

  • Roger Ailes steps down as Fox News chairman & CEO

    Roger Ailes steps down as Fox News chairman & CEO

    MUMBAI: The Murdoch family-promoted 21st Century Fox has announced Roger Ailes has stepped down as chairman and CEO of Fox News and resigned from Fox Business Network and Fox Television Stations, effective immediately.

    Rupert Murdoch, Executive Chairman of 21st Century Fox, will assume the role of Chairman and acting CEO of Fox News Channel and Fox Business Network.

    It’s a stunning fall for Ailes, a long time political operative and Murdoch ally, who is credited with building Fox News and leading the cable channel to ratings dominance.

    In a statement released to the media last week, Rupert Murdoch said: “I am personally committed to ensuring that Fox News remains a distinctive, powerful voice. Our nation (the US) needs a robust Fox News to resonate from every corner of the country.”

    Murdoch will be assisted in running the Fox businesses by existing management team under Bill Shine, Jay Wallace and Mark Kranz.
    Ailes, 76, was in the eye of the storm having been accused of sexual harassment in a lawsuit filed earlier this month by former Fox News host Gretchen Carlson.

    Though Ailes has vigorously denied Carlson’s claims, Fox News launched an internal investigation. The developments, critics and media observers claim, was a result of public and political pressure and perception.

    “Roger Ailes has made a remarkable contribution to our company and our country. Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years,” the company statement quoted Murdoch as saying.

    In a letter to Murdoch, released by a publicist, Ailes said, “I am proud of our accomplishments and look forward to continuing to work with you as an adviser in building 21st Century Fox.”

    “We join our father in recognizing Roger’s remarkable contributions to our company,” a joint statement from Murdoch’s two sons, Lachlan and James, said. The sons are in charge in charge of Fox News.
    Ailes began his television career in the early 1960s as a producer at The Mike Douglas Show in Cleveland, and went onto serve as media consultant for several Republican presidents, including Richard Nixon and Ronald Reagan.

    “I take particular pride in the role that I have played advancing the careers of the many women I have promoted to executive and on-air positions,” Ailes wrote in the letter to Murdoch, adding that many of these talented journalists have deservedly become household names known for their intelligence and strength whether reporting the news, fair and balanced, and offering exciting opinions on opinion programmes.

    In his defence, Ailes further stated in the letter that Fox News has become No. 1 in all of cable because he “identified and promoted the most talented men and women in television, and they performed at the highest levels.”

    In 1996, Murdoch, seeing a market for a conservative cable news outlet, hired Ailes to create Fox News. And Ailes moulded the network to run like a political campaign operation with primetime shows that were unabashedly conservative and hosts who openly espoused Republican talking points.

    The network eventually unseated CNN as the highest rated cable news network and became one of the most popular cable networks of all genres, reaching more than 90 million households.

    “It is always difficult to create a channel or a publication from the ground up and against seemingly entrenched monopolies,” Murdoch Sr. said, adding, “To lead a flourishing news channel, and to build Fox Business, Roger has defied the odds.”