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Tag: Zee Cinema

  • Zee Turner, Tata Sky spat reaches court

    Zee Turner, Tata Sky spat reaches court

    NEW DELHI: It has come a full circle for the Zee group. DTH service provider Tata Sky has dragged distribution company Zee Turner to court for acting pricey on giving its channels to the new entrant in the Indian DTH arena.

    The case filed some days back in a Delhi court by Tata Sky states that Zee Turner is setting “unreasonable” terms for negotiations for its bouquet of channels, which amounts to a breach of various directives issued by the sector regulator.

    The case is slated for a hearing today. However, court sources indicated that its unlikely arguments will take place in the first hearing.

    Tata Sky, which began its commercial operations few weeks back, is presently offering consumers 55-odd TV channels at a price that is more than the Subhash Chandra-promoted Dish TV, which is country’s first pay TV platform.

    Zee Turner is a 74:26 distribution joint venture between the Chandra-controlled Zee Telefilms and Time Warner company Turner International India.

    The genesis of the present face-off is lack of consensus on pricing of Zee Turner channels and Tata Sky’s insistence on select TV channels from the bouquet of 32 channels.

    While India’s second pay digital platform Tata Sky wants select Zee Turner channels for a reported sum of below Rs. 40 per subscriber, the latter is insisting all its 32 channels should be taken.

    As reported by Indiantelevision.com earlier, sources close to the negotiations said Zee Turner has conveyed that it’s ready to give all its channels to Tata Sky’s DTH platform for Rs. 74 per subscriber per month, which is 50 per cent of the price that cable operators pay for the Zee Turner bouquet.

    Bouquet 1 of Zee Turner comprises Zee TV, Zee Cinema, Zee News, Zee Studio, Zee Bengali, Zee Gujarati, Zee Marathi, Zee Punjabi, Cartoon Network, Reality TV, CNBC, CNN, Zee Café, Zee Trendz, ETC, ETC Punjabi, Zee Jagran, Zee Smile, Zee Telgu and Zee Music.

    The second bouquet includes HBO, Pogo, Awaaz, VH1 and Zee Business. Zee Turner is soft bundling Zee Sports at a price benefit.

    The third bouquet, called Breakfree, consists of Zee Action, Zee Premier and Zee Classic, which air movies of different genre and are primarily available on Dish TV DTH platform.

    Zee Turner had earlier reasoned that its demand is based on a recent ruling of a disputes tribunal in Dish TV vs. Star case wherein Star was asked to make available its channel to Dish at Rs. 27 per subscriber, which is 50 per cent less than the price cable ops pay.

    Dish TV had to wait for over 18 months since launch to finally manage to get Star channels on its DTH platform.

    After having got powerful products like Star Plus, Dish TV has announced that it will not charge its consumers for some months anything extra for the Star channels, most of which are in the basic tier of 78-odd channels and can be had for Rs. 185 per month by a subscriber of Dish TV.

  • HC’s U/A ok sees Sahara One, Filmy back on air

    HC’s U/A ok sees Sahara One, Filmy back on air

    MUMBAI: Sahara One and Filmy are back on the cable TV networks in Maharashtra while the ban on the other seven channels for showing adult movie content continues.

    “Sahara One and Filmy were banned due to a confusion on U/A certificate. We have certain movies with U/A certificate and mistakenly it was included in the A category. But yesterday’s High Court ruling brought the clarity that U/A certified movies don’t come under the purview of the ban. Hence, our two channels are now back on air,” says Sahara One Media & Entertainment CEO Shantonu Aditya.

    B’casters to meet I&B ministry to convey views
    Broadcasters are planning to meet the information and broadcasting (I&B) ministry to represent their views. They are willing to obtain certificate from the censor board before they air any movies. But they feel the entire process of certification of their movie library would require time. “The certification board needs to beef up its infrastructure to clear a huge pile of movies. We want to be given time for carrying out this process,” says a senior executive of a leading movie channel.

    The channels which are still to come on air are Star Gold, Star Movies, Star One, Max, Zee Cinema, AXN and HBO. These channels will continue to remain off air at least till the next hearing of the case.

    DTH providers continue to show banned channels
    Direct-to-home (DTH) service providers, however, continued to show these banned channels as they were yet to be served notice. Tata Sky Ltd and Dish TV executives were not available for comment. The Bombay High Court yesterday ruled that DTH service providers and broadcasters were bound by the 21 December, 2005 order banning the telecast of movies with `A’ certificates.
    “Nobody has received the High Court order as yet. This could be the reason for these channels being still available on DTH,” an industry observer says.

    Out of the list of 122 movies given to the High Court, 84 have U/A certification. “We are happy that the order includes broadcasters and DTH operators. If DTH is showing the channels today, that may be because the fine print of the High Court order has not reached anybody,” says Ravi Singh, a distributor of Wire and Wireless India Ltd (WWIL).

    The cable TV service in pockets of Malad and Borivli, located in the western suburbs of Mumbai, are yet to resume following the police raid and sealing of amplifiers. “We are taking up the matter with the court tomorrow for restoration of signals. Seven sub-operators are affected in this area,” says Singh.

    Broadcasters have recently been cautious in buying Hindi movies from producers. In acquiring new adult movies for telecast rights, they are insisting on re-censoring it for television. Sahara, for instance, acquired Gangster, an `A’-rated movie after asking the producer to re-censor it for TV viewing.

    “In case we buy A movies in future, we will re-censor it,” says Aditya.

    Film producers, however, feel that re-censoring is an unnecessary headache and will occupy bureaucratic procedures. The editing may also make it less attractive for TV viewing if the content is essential to the plot of the movie, they say.

    Meanwhile, the Film & Television Producers Guild Of India has sought clarity from the I&B minister Priya Ranjan Das Munshi over the confusion prevailing “in respect of film certification and broadcast content regulation.”

    Guild president Amit Khanna said the entire entertainment fraternity would be grateful if the I&B ministry could take issue of ‘censorship’ holistic in the spirit of a self-regulating code and take appropriate steps to make suitable legislative amendments in this regard at the earliest.

  • HC includes DTH operators, channels in adult movie ban ambit; slams cable blackout

    HC includes DTH operators, channels in adult movie ban ambit; slams cable blackout

    MUMBAI: The Bombay High Court today ruled that broadcasters, including direct-to-home (DTH) service providers, were bound by the 21 December, 2005 order banning the telecast of movies with ‘A’ certificates.

    The High Court bench, headed by Justice Lodha, pulled up the cable operators for their action of discontinuing transmission of all channels in the city. “The act was irresponsible,” the bench decreed, adding that cable operators could not charge subscribers for the two days when services was not available.

    The court also specified that the broadcasters have to obtain certificate from the censor board before they air any movies. Justice Lodha pointed out that the December 2005 order holds applicable to foreign channels.

    What this means is that the nine channels charged with showing adult content — Hindi and English movie channels (Zee Cinema, Star Movies, HBO, Filmy, Star Gold, AXN and Max), and Hindi entertainment channels Star One and Sahara One — will continue to remain off air at least till the next hearing of the case.

    Cable services were stalled on Monday evening after the Mumbai police raided cable TV control rooms and seized decoder boxes of the nine channels.

    It was in the December 2005 that the High Court had ordered the police to take action against cable operators and cable service providers who beamed movies without ‘A’ or ‘U/A’ certificates. This was in response to a public interest litigation filed by social activist Pratibha Nathani.

    However, today’s order made an important modification to the original order delivered last December. The court pointed out that movies with U/A (universal/adult) certification cannot be banned. These would be allowed to be screened but would have to run a cautionary scroll highlighting that the movies can be watched under parental guidance, the court ruled.
    The court also said that with this modification, if police have taken action against anybody for showing U/A movie in the past few days, such an action will have to be discharged, news agency Press Trust of India reported.

  • Cable blackout in Mumbai ends

    Cable blackout in Mumbai ends

    MUMBAI: Cable television is finally back in Mumbai after almost two days. However, movie channels, as well as Hindi entertainment channels Star One and Sahara One, remain on the blink.

    A compromise was reached late this evening after the Cable Operators and Distributors Association (Coda), which represents local cable ops, as well as representatives of the various multi-system operators, met Maharashtra home minister RR Patil.

    The cable fraternity’s contention has been that since they are only service providers, and not content producers, they require “clear cut regulation from the government for the telecast of movie channels.”

    According to a cable operator who preferred to remain anonymous, all the networks were restoring cable services barring those of the nine channels that triggered the imbroglio in the first place. “We will wait for the verdict, which will be heard tomorrow (Wednesday) by Justice Lohda (before deciding on the next course of action),” he said.
    Cable operators have filed an intervention petition in the Bombay High Court asking why broadcasters and direct-to-home operators were not being taken to task by the authorities. The petition is scheduled to come up for hearing tomorrow.

    Earlier in the day, cable operators were running a scroll informing viewers of the reasons behind the suspension of services. “Due to unprecedented raids on cable operators for carrying satellite movie and entertainment channels having adult content, all Maharashtra cable operators have shut down these channels till further directions from the High Court and commissioners. Kindly bear with us.” — Cable Operators and Distributors Association.

    The channel blackout was not total all over Maharastra though. Besides Mumbai, other parts of the state – such as Nasik, Pune, Thane and New Mumbai – were affected to varying degrees by the channel blackout. In Pune, for instance, the cable networks only discontinued the transmission of movie and music channels.

    Cable services were halted last evening after the Mumbai police raided cable TV control rooms and seized the decoder boxes of nine channels charged with showing adult content. Among these were Hindi and English movie channels (Zee Cinema, Star Movies, HBO, Filmy, Star Gold, AXN and Max), and Hindi entertainment channels Star One and Sahara One.

    Police said the operators were raided because they were showing adult films, despite there being a ban on them. At least three million homes were affected by the blackout.

  • Mumbai cable TV shut as operators protest police clampdown

    Mumbai cable TV shut as operators protest police clampdown

    MUMBAI: Cable operators across India’s entertainment capital Mumbai blacked out all channels on their networks on 21 August late evening. The reason: they were protesting against the move by the authorities to stop them from transmitting English and Hindi movie channels to their viewers.

    Earlier in the day, the Mumbai police had swooped down on cable TV control rooms and sealed decoder boxes of nine channels for showing adult content. Among these were Hindi and English movie channels (Zee Cinema, Star Movies, HBO, Filmy, Star Gold, AXN and Max), and Hindi entertainment channels Star One and Sahara One.

    At the time of writing, unconfirmed reports were that other cities across the western Indian state of Maharashtra had also been affected with cable TV services partially or completely shut down. For instance a major cable operator in Pune revealed that decoders of the above nine channels and also those of MTV and Channel V had been sealed.

    Additionally, certain cable TV networks had started scrolling that the agitation had spread through the rest of Maharashtra with services being shut down every where.

    “Police have sealed the decoder boxes of nine channels. We had to sign a bond that we wouldn’t be telecasting these channels till the High Court ruling,” says a senior executive of a leading multi system operator (MSO).

    The Bombay High Court had last week pulled up the Maharashtra police chief for not acting against cable operators who were violating its earlier order banning adult movies on TV. In December 2005, the High Court had ordered the police to take action against cable operators and cable service providers who beamed movies with ‘A’ or ‘U/A’ certificates. This was in response to a public interest litigation filed by social activist Pratibha Nathani.

    In Mumbai, cable operators have blacked out their service. “There was too much confusion and we didn’t receive a definite list of which channels to block. Movie channels like Pix and Zee Studio, for instance, are spared. It is only late in the day that the police has come to our control rooms and sealed the decoders of nine channels. To avoid all this chaos, the three control rooms of Siticable in Mumbai have switched off their service,” says Ravi Singh, a distributor of Siticable.

    Adds a cable operator, “They should have told us early in the day which channels we are not to telecast. There would have been no need for the police to visit all the control rooms in Mumbai as we would have blocked these channels. We are not broadcasters and we can’t be expected to act as the censors of content.”

    The Bombay High court had on 16 August directed Director General of Police Dr P S Pasricha to file an additional affidavit within a week to explain whether any action has been taken against erring cable operators.

    MSOs are deciding what course of action they should take. “We may move the court,” says Wire and Wireless India Ltd. (WWIL) CEO Jagjit Kohli.

    When contacted, a Star India spokesperson did not wish to comment on the issue.

  • Tata-Sky approaches TDSAT against Zee over bouquet pricing

    Tata-Sky approaches TDSAT against Zee over bouquet pricing

    MUMBAI:There seems to be no end to the thrust and parry going on over the DTH airwaves. Close on the heels of Dish TV wresting a favourable decision against Star India, Tata Sky has moved the Telecom Disputes Settlement And Appellate Tribunal (TDSAT) — against what it terms as Zee’s exhorbitatnt terms for providing its network channels to its still-in-the-pipeline DTH service.

    The petition by Tata Sky before the appellate tribunal makes Zee Turner Ltd, Zee Telefilms Ltd,Turner International India and Dish’s managing company ASC Enterprises LTD as party to the case.

    The Tata Sky petition alleges that the Zee Group has denied supply of Zee Turner bouquet of channels to the former’s yet-to-be-launched DTH service under reasonable terms.

    The petitioner has sought “to obtain appropriate direction for the signals of the channels,” alleging that respondent Zee Turner has quoted unreasonable terms for supply of its signals to Tata Sky.

    Contacted by Indiantelevision.com, a senior executive at Dish TV today refrained from commenting on the issue, saying, “We have yet not received any direction from TDSAT.”

    The disputes tribunal has given the respondents three days from the day they receive an official intimation to file its replies.The next date of hearing is 25 July 2006.

    As per regulatory norms, all content should be made available to all delivery platforms on a non-discriminatory basis.

    Last week, the tribunal had delivered a verdict laying down benchmark rate for channel prices for DTH platforms, while directing Star to make available its channels to Dish TV.

    Main respondent Zee Turner is a 74:26 distribution joint venture between Zee Telefilms and Time Warner company Turner International India.

    The cable pricing of the two Zee-Turner bouquets is Rs 83.65 plus service tax. Zee-Turner’s bouquet one comprises Zee TV, Zee Cinema, Zee Movies, Zee English, CNN, Cartoon Network, CNBC, Trendz, Reality TV, Zee Marathi, Zee Punjabi, Zee Bangla and Zee Gujarati and is priced at Rs 58.85 per subscriber/per month. The second bouquet carries HBO, Vh1, Pogo, Zee Business and Awaaz, which is available at Rs 25 per subscriber/per month.

    Tata Sky’s complaint before TDSAT is that Zee is seeking the same pricing terms for supplying its channels to its DTH service as is its cable rates.

    In what manner TDSAT responds to the Tata Sky complaint will be watched with close interest. After all, in its earlier order in favour of Dish TV, TDSAT, while directing the sector regulator to set a benchmark for channel prices for DTH services, said that Star channels should be made available to Dish TV at half the price at which they are available to cable operators.

    The tribunal’s reasoning in the earlier case was that DTH is an addressable system where loss of revenue down the value chain is negligible, if not zero.

  • Zee Telefilms mulls an entry into China

    Zee Telefilms mulls an entry into China

    MUMBAI: Foreign media companies seem to have hit a wall when it comes to China. Star Group, for example, continues to bleed in that market despite pumping in big money for years. This, however, has not stopped global firms from eyeing a slice of the cake that a 1.3 billion population promises.

    Subhash Chandra is the latest media baron willing to throw his hat in the ring. Zee Telefilms Ltd. (ZTL) is planning to enter China, the toughest market to crack with its tight controls on foreign media.

    “We will be entering that market. We have not yet applied for the landing rights. It will take time and we expect it to happen sometime towards the end of this fiscal,” says Essel Group chief executive officer of corporate strategy Rajiv Garg.

    Though Zee plans to have a presence in China in the broadcasting space, it has not yet finalised on what content and channel it should set up to lure viewers. ZTL chairman Chandra recently said Zee would launch a dubbed movie channel in Russia.

    ZTL also plans to launch in Afghanistan, Cambodia and Indonesia to expand its international operations which account for almost one-fourth of the company’s revenues. Running businesses which have matured in the UK and US, Zee’s strategy is to launch dedicated channels in certain markets which it has identified. The company has stitched a deal with Malaysia’s multi-channel pay TV operator Astro to create a channel with Hindi content drawn from Zee TV, Zee Cinema, Zee Music and Trendz for the Indonesian, Malaysian and Brunei audiences. For tapping youth audiences in the Arab region, Zee also has launched Zee Arabiya, a music and lifestyle channel.

    Global media companies like News Corp, Time Warner and Viacom see China as a fertile revenue market in the long term, though it is currently spoilt by heavy-handed regulation on foreign media.

  • Zee-Turner switches off OCN Network in Mangalore

    Zee-Turner switches off OCN Network in Mangalore

    MUMBAI: Zee Turner Limited, the distribution arm of Zee Telefilms Ltd and Turner International (I) Pvt. Ltd, has finally switched off its bouquets of 26 channels on OCN Network in Mangalore due to non payment of its huge outstanding to Zee Turner and non signing of fresh agreement after expiry of earlier one.

    Zee Turner has been in negotiations with OCN for past eight months to clear its outstanding and to sign a fresh subscription agreement declaring its accurate subscriber base as the old agreement. It was found that OCN had been serving many more subscribers and households as compared to the number of subscriber households declared to Zee Turner.

    The decision to switch off the operator came in wake of fall out of negotiations and the operator’s constant abstinence from clearing its outstanding and signing the requisite agreement.

    While rest of Mangalore on CCC and ICN’s network continues to enjoy the channels of Zee Turner, close to 50,000 subscribers of OCN Network are deprived of channels like CNN, Zee Cinema, Zee TV, HBO, Cartoon Network, Pogo due to default on OCN’s part.

    Zee Turner Ltd. CEO Arun Poddar said, “We are concerned about our viewers and still trying to negotiate with OCN and have kept all our channels of communication open. We have shared an extremely healthy relationship with OCN in past and are positive of resolving the issue in an amicable manner.”

    It is to be noted that as per the regulation of the Telecom Regulatory Authority of India (Trai), if a cable operator drops a channel or bouquet of channels from his network, he is required to reduce the price of such channel/bouquet to be charged from his customers/households. The viewers are, therefore, entitled and may ask for reduction in price from their monthly cable bill if these channels are missing due to such switch off.

  • Star India acquires four films including ‘Rang De..’ from UTV for Rs 160 million

    Star India acquires four films including ‘Rang De..’ from UTV for Rs 160 million

    MUMBAI: Star India has acquired the telecast rights to the Aamir Khan starrer Rang De Basanti from UTV. The block buster film has been bought over along with three other UTV productions as a package for around Rs 160 million, according to market sources.

    The other three movies Star has acquired are Chup Chup Ke, The Blue Umbrella and an un-titled David Dhawan project.

    Confirming the acquisition to indiantelevision.com, Star Entertainment India CEO Sameer Nair said Star channels would premiere Rang De Basanti in the last quarter of the calendar year. “We have acquired four movies, including Rang De Basanti, from UTV through a package deal. We will telecast Rang De Basanti some time around October 2006,” says Nair. However, Nair refused to confirm the acquisition price.

    Rang De Basanti has been the biggest grosser for UTV Motion Pictures this year. The movie, starring the ensemble cast of Aamir Khan, Madhavan, Soha Ali Khan, Kunal Kapoor, Siddharth, Sharman Joshi and Alice Patten, is directed by Rakeysh Omprakash Mehra.

    Scheduled for a 9 June release, Chup Chup Ke will see popular director Priyadarshan delivering yet another South remake. The film is the Hindi version of the Malayalam blockbuster laugh riot Punjabi House. Chup Chup Ke stars Shahid Kapoor, Kareena Kapoor, Neha Dhupia, Paresh Rawal, Rajpal Yadav and Om Puri.

    The Blue Umbrella, directed by Vishal Bharadwaj has Pankaj Kapur donning the title role. Released in December 2005, this low-budget movie had won a lot of critical acclaim. The fourth movie in question is a David Dhawan venture which is about to go on floor.

    The new UTV collection beefs up Star India’s blockbuster bank. The network has already acquired titles such as Krrish, Taxi No.9211 and Bluffmaster. Some of the other movies Star has acquired this year include Apaharan, Ankahee, Shikhar, Family and Aksar.

    While Star India has pocketed a significant number of big movies to telecast this year, competitiors Zee Cinema and Max are gearing up for some tough fight. Zee Cinema has re-branded its driver property Shaniwaar Ki Raat Amitabh Ke Saath and recently telecast the big movie Garam Masala. Other key telecast rights the channel holds include Umrao Jaan, Pyare Mohan and Home Delivery, according to sources.

    On the other hand, Max is banking on some of the 2005 blockbusters such as Salaam Namaste, Kalyug and Zeher. It is expected that Yash Raj Films’ latest release Fanaa and the upcoming biggy Kabhi Alvida Na Kehna will also go to Max.

  • Zee consolidated net skids 30% at Rs 2.21 billion in FY06

    Zee consolidated net skids 30% at Rs 2.21 billion in FY06

    MUMBAI: Zee Telefilms has posted a 30 per cent fall in consolidated net profit at Rs 2.21 billion for the fiscal ended 31 March 2006, as against Rs 3.17 billion a year ago.

    Total income, however, rose to Rs 14.87 billion, up from Rs 13.3 billion.
    For the last quarter of the fiscal, the company has reported a 27.2 per cent decline in consolidated net profit to Rs 675.5 million, as compared to Rs 925.7 million in the corresponding period of the previous year.

    Total income, however, rose 10 per cent to Rs 4.1 billion, up from Rs 3.8 billion. The operating profit stood at Rs 761 million, after expensing of initial investments in new activities viz. Zee Telugu, Zee Smile, Zee Sports and others, amounting to Rs 525 million (13.2 per cent of consolidated revenues). As a result, consolidated operating profits of continuing businesses were Rs 1.28 billion. These are higher by 4.8 per cent as compared to the corresponding quarter last year. “The growth rate is subdued mainly due to investments in marketing focused on long-term buildup of mainline channels,” Zee said in an official release.
    On a standalone basis, Zee Telefilms has posted a 54.39 per cent fall in net profit to Rs 740.00 million for the year ended 31 March 2006 as compared to Rs 1.62 billion a year ago. Total Income has increased to Rs 8.84 billion, up from Rs 6.93 billion.

    For the quarter ended 31 March 2006, the company reported a net loss of Rs 132.5 million as compared to a net profit of Rs 370.40 million a year ago. Total income, though, has increased to Rs 2.66 billion, up from Rs 1.75 billion during the period.

    “The business of Zee Sports channel started on 8 June 2005. Zee Sports Ltd is re-organised in ZTL during current quarter and content gathering and space selling activity is retained in Zee Sports through an agency arrangement. Hence the standalone results of the company for current quarter and year are not comparable, said the company.

    Commenting on the results, ZTL chairman Subhash Chandra said, ““We are pleased to report the continuing uptrend in advertising revenues and the strong recovery in our market position. You are aware of the hike in advertisement rates announced by Zee Network, which we are confident would start reflecting in FY2007 revenues.”

    “The Board has also given approval for the hiving off of Zee’s direct consumer business. All DishTV operations would now be under a single corporate entity, bringing strategic clarity to this high growth business. This shall complete the restructuring agenda we had set for ourselves to create four focused, pure play, listed companies ready to exploit the vast emerging opportunities in each line of business. Subject to necessary approvals, this would result in streamlined operations in each area to build long-term shareholder value. It would also clear the ground for acquisitions and strategic or financial partners in the de-merged businesses, apart from unlocking shareholder value,” said Chandra.

    Commenting on the results, ZTL CEO Pradeep Guha said, “While general entertainment (GE) as a genre has posted a 5 per cent decline in time spent, Zee TV has increased its viewership share from 16 per cent to 22 per cent along with a significant growth in time spent. Even within prime time Zee TV is the only channel to have grown, by 21 per cent, while its main competitors have dipped between 7 per cent and 12 per cent. Zee TV now conclusively occupies the second place in the pecking order of GE channels. With an average of 180 GRPs, we are fully 30 per cent higher than the number three GE channel, which continues to be behind Zee Cinema as well.”

    “The cinema space has shown a decline except however for Zee Cinema, which has grown 7 per cent, with a channel share of 37 per cent. Recently we won the BCCI Cricket Rights for the one-day internationals to be held in non-ICC countries.This further strengthens the long term business prospects of the company,” Guha added.

    The Board of Directors in its meeting held today, has taken on record the unaudited consolidated financial results of Zee Telefilms Limited and its subsidiaries for the quarter ended 31 March, 2006.

    REVENUE STREAMS:
    Zee’s advertising revenues increased to Rs 1.96 billion, a 11.7 per cent growth as compared to the corresponding quarter last fiscal. “This growth in advertising revenues was a result of higher average rates on most of the network channels,” the company said.

    Overall subscription revenues at Rs 1.76 billion registered an increase of 5 per cent over the corresponding quarter last fiscal. Domestic pay revenues stood at Rs 717 million. Other sales and services grew to Rs 253 million. “From 2Q FY2006, we are recording the net income component of the trading of set top boxes as part of other income”, the company said in the release.

    EXPENDITURE:
    Overall, the cost of goods and operations went up 44.8 per cent compared to a year-ago period, mainly due to investments made in new channels like Zee Sports, Zee Smile, Zee Telugu and Zee Jagran.

    Personnel costs were 6.5 per cent higher than corresponding period last year. Other costs, particularly marketing expenses have increased by 24.4 per cent. As a result, total expenses were higher by 35 per cent.

    From FY2006, the Company has accelerated its investments in the development and expansion of its network. “This has taken two directions. One, substantial marketing and content improvement initiatives have been put through and second, a number of new channels have been launched, to fill out our content offerings,” states the company.

    “As a result, Zee is in a phase in which the initial investments have been made and expensed fully, while the corresponding revenue build-up is to be realized in the next several quarters. The immediate impact is lowering of operating profits, which we hope to recover in successive quarters through increasing revenues and progressive reduction in costs,” the company adds.

    Zee’s Q4 segment-wise revenues are indicated in the table below:

    OTHER HIGHLIGHTS

    Cable Network
    Zee is looking forward to reinvention of its cable TV business and augmenting revenues. “The cable business is poised to pursue new technology opportunities with renewed focus including ‘triple play’ offerings, digitisation of cable, broadband and other similar initiatives that form the frontiers of cable today. Firm business plans are being given shape and field launch is due to commence shortly. There is more visibility now on the path of transition in the cable business towards digitalization. The recent regulatory and legal developments look set to lead to a roadmap for digitisation initially in the metros,” the company said.

    Direct Consumer Services business
    The DTH subscriber numbers have crossed 900,000 and are growing at the rate of about 2,500 per day. “We are poised to execute market expansion strategies which would lead to a ramp up of subscription from the urban markets, based on value added services not presently available on cable,” the company said.

    At the Bombay Stock Exchange today, the Zee scrip opened at Rs 241.50 and closed at Rs 246.65, after touching a high of Rs 253 and a low of Rs 242.50.