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Tag: Zee Entertainment Enterprises Limited

  • Zee gets Glass Lewis nod for Rs2,237 crore promoter warrant issue

    Zee gets Glass Lewis nod for Rs2,237 crore promoter warrant issue

    MUMBAI: Global proxy advisory firm Glass Lewis has thrown its weight behind Zee Entertainment’s plan to issue up to 169.5 million convertible warrants to its promoter group, giving the broadcaster a crucial endorsement ahead of its 10 July EGM. The deal, priced at Rs132 per warrant, could fetch Zee a much-needed Rs2,237 crore war chest.

    The preferential allotment—to Sunbright Mauritius Investments and Altilis Technologies, both part of Zee’s promoter stable—will see a 25 per cent upfront payment, with the balance due within 18 months. The warrants convert into equity on a 1:1 basis and would dilute existing share capital by about 15 per cent, which Glass Lewis termed “reasonable.”

    The firm said the proposal clears Sebi’s rulebook on pricing and fairness and raised no governance red flags. Zee says the funds will back strategic expansion, bolster liquidity in an increasingly brutal media market, and fund acquisitions in high-growth niches.

    Despite lacklustre stock performance—down 28.4 per cent over the past year and 29.7 per cent over three—Zee has retained a solid ESG profile. Sustainalytics rates its ESG risk as low, while ESG Book places it in the 90th percentile for governance among broadcasters.

    But the proxy adviser flagged one weak link: cybersecurity. BitSight ranks Zee in the bottom five per cent of the entertainment sector. Although the firm has had no major data breaches in 18 months, its digital ramp-up puts it at risk, Glass Lewis warned.

    Public shareholders hold more than 95 per cent of Zee’s equity. Big names include Sprucegrove (5 per cent), LIC (4.63 per cent), and Norges Bank (3.95 per cent), with support from mutual funds and institutions likely to be decisive.

    The EGM will be held virtually, and the record date was 3 July. If passed, the resolution would help Zee reset its balance sheet and fire up its strategic ambitions in streaming and beyond.

  • Zee Entertainment wraps FY25 with a bang

    Zee Entertainment wraps FY25 with a bang

    MUMBAI:  Zee Entertainment Enterprises Ltd (Zeel) has closed its financial year on a high note, reporting a 32 per cent rise in EBITDA to Rs 11,962 million for FY25, powered by sharp cost control and solid performance across its digital and television businesses. The company’s board has recommended a dividend of Rs 2.43 per equity share of Re 1, subject to shareholder approval at the upcoming annual general meeting.

    Zee’s traditional TV business held its ground, maintaining a stable 16.8 per cent share of the Indian TV network viewership, even as sports broadcasts slightly ate into general entertainment viewership. Notably, Zeel’s regional channels — Zee Marathi, Zee Kannada, and Zee Telugu — emerged as strong performers.

    On the digital front, Zeel’s streaming platform Zee5 recorded a six per cent year-on-year increase in revenue, reaching Rs 9,760 million in FY25. Even more impressive was the platform’s ability to rein in losses, slashing its EBITDA losses by Rs 5,572 million over the year. Zee5’s growth was fuelled by 20 new original titles, which helped it maintain user engagement despite a challenging digital ad market.

    Zee Studios had a busy quarter, releasing eight films across Hindi and regional languages, bolstering its presence in the domestic film market. Meanwhile, Zee Music Co (ZMC) continued its YouTube dominance, reaching 164 million subscribers with a whopping 190 billion views in FY25. ZMC added 14.7 million new subscribers during the year, solidifying its position as the second-largest music label on YouTube.

    Zee’s financials reflected strong cost discipline. Total revenue for FY25 stood at Rs 82,941 million, with an EBITDA margin of 14.4 per cent — a 390 basis point increase from FY24. Profit after tax (PAT) from continuing operations surged by 245 per cent to Rs 6,874 million, a testament to the company’s focus on profitability.

    The balance sheet looked rock-solid with cash and cash equivalents swelling to Rs 24.1 billion by March 2025, including Rs 2 billion from the first tranche of Foreign Currency Convertible Bonds (FCCB). The company’s net profit for the year came in at Rs 6,795 million, a massive 381 per cent jump over FY24.

    * Operating revenue for FY25: Rs 82,941 million, down four per cent YoY due to advertising pressure.
    * Expenditure fell by eight per cent to Rs 70,979 million, reflecting strong cost control.
    * EBITDA for FY25 rose to Rs 11,962 million, with a margin of 14.4 per cent, up 390 bps YoY.
    * Profit before tax (PBT) from continuing operations surged 143 per cent to Rs 9,261 million.
    * Zee’s all-India TV network share: 16.8 per cent, marginally down by 30 basis points YoY.
    * Regional powerhouses included Zee Marathi, Zee Kannada, and Zee Telugu.
    * TV revenues saw a mixed bag, with advertising under pressure but subscription and syndication revenue offering a cushion.
    * Zee5 revenue: Rs 9,760 million, up 6 per cent YoY.
    * EBITDA losses cut by Rs 5,572 million in FY25.
    * Original content: 20 new titles, driving user engagement.
    * Syndication revenue provided an additional boost.
    * Zee Studios: Eight films released in Q4 FY25 across Hindi and regional languages.
    * Notable releases included Chirodini Tumi Je Amar (Zee Bangla), Naa Ninna Bidalaare  (Zee Kannada), Lakshmi Nivasam (Zee Telugu), and Gatti Melam (Zee Tamil).
    * Zee Studios maintained its focus on a balanced mix of in-house and distributed titles.
    * ZMC: Total subscribers: 164 million across all channels, up 14.7 million YoY.
    * Total video views: 190 billion in FY25.
    * ZMC remains the second-largest music label on YouTube globally.

  • ZEE5 brightens Diwali with Manoranjan festival & special premium subscription discounts

    ZEE5 brightens Diwali with Manoranjan festival & special premium subscription discounts

    Mumbai: ZEE5, India and Bharat’s largest home-grown video streaming platform, the multi-lingual storyteller and the OTT arm of ZEEL, announced the Manoranjan Festival and exclusive festive discounts on premium subscriptions for ZEE5 viewers. Starting from 4 – 14 November 2023, ZEE5 is streaming 18 premium SVOD titles across 6 languages at zero cost. The platform has announced a 30 per cent discount on premium HD subscription at Rs 699 from 3 to 15 November. Along with this, consumers can avail a 40 per cent discount on 4K subscription at Rs 1199/- from 3 to 9 November and a 50 per cent discount from 10 to 15 November at Rs 999.

    The slate of free-to-watch festive entertainers includes marquee titles across thrillers, fiction, romance like Padman, Kaagaz, Jhund in Hindi; Bangarraju, Varudu Kaavalenu, Rang De in Telugu; Bommai Nayagi, Captain, Valimai in Tamil; Bhajarangi 2, Ek Love Ya, Arjun Gowda in Kannada; Thattassery Koottam, Vedikkettu, Prakashan Parakkatte in Malayalam; and Har Har Mahadev, De Dhakka 2, Zombivli in Marathi. Further, prominent TV shows across languages will celebrate ‘Ghar-wali Diwali’ with ZEE5 viewers on the platform.

    ZEE5 India chief business officer Manish Kalra said, “For the festive season 2023, our focus was on expanding the offerings on the platform for both the formats to ensure the wider audience is benefitted. On AVOD, in the last quarter we have launched unique content through campaigns every month alongside releasing top blockbusters for premium users. Audience response has been positive with an increase in engagement on the platform through our family entertainers. I hope audiences will enjoy the Diwali offerings as we assure to continue creating quality entertainment for ZEE5 viewers.”

    ZEE5 is one of the fastest-growing OTT platforms in India as per latest industry reports, with a significant presence in regional markets. The platform is known for its diversified content across over 100 taste clusters and its focus on real, relevant, and resonant storytelling. In 2023, the platform had announced a massive slate of 111 titles spanning across genres and formats. Today, ZEE5 is present in over 190 countries and is home to over 5 lakhs+ hours of on-demand content, over 160 Live TV channels and a strong library of 4000+ titles in 12 Indian languages. With a seamless user interface and amazing user experience, the platform is the highest rated OTT platform on both Android PlayStore and iOS App Store with a rating of 4.5/5 on the Android Play Store and 4.8/5 on the iOS App Store.

    Tune in for a Mega Entertaining Festive Period from 4 Nov- 14 Nov only on ZEE5!

  • ZEE5 Intelligence Monitor launches new report on Quick Delivery Services (QDS)

    ZEE5 Intelligence Monitor launches new report on Quick Delivery Services (QDS)

    Mumbai: ZEE5, India’s largest home-grown video streaming platform and multilingual storyteller for entertainment seekers, has unveiled the new edition of its intelligence monitor which signifies key trends and insights within the Quick Delivery Services (QDS) segment. This comprehensive research highlights the emergence of Quick Delivery Service (QDS) apps as a revolutionary force in the consumer landscape, reshaping buying trends across both metro and non-metro regions with last-mile access to everyday goods and services. Additionally, it sheds light on the growing preference of today’s women for QDS apps.

    ZEE5’s Intelligence Monitor on the Quick Delivery Service segment offers valuable insights for marketers and businesses, paving way for pioneering initiatives to target potential audiences and navigate this dynamic industry. The report further suggests that the ratio of metro users as compared to non-metro users of QDS apps stand at 53:47, which is drastically evolving in the post-pandemic era. The QDS ecosystem is witnessing phenomenal rise in demand on the back of emergence of individual consumers as a user category.

    Key highlights of the QDS report:

    ·         66 per cent of consumers use QDS apps every week, whereas 54 per cent of women engage with QDS apps every week

    ·         1 out of 2 consumers rank convenience as the top reason for using QDS apps

    ·         79 per cent of non-metro respondents have tried a QDS app; whereas 61 per cent of non-metro respondents are regular users

    ·         38 per cent of users find comfort in shopping from the privacy of their homes

    ·         59 per cent of users make personal care purchases on QDS platforms

    ·         44 per cent of consumers use QDS apps to pick and drop packages within the city

    ·         78 per cent of respondents have tried a QDS app

    ·         56 per cent of respondents display high loyalty to QDS apps

    On the release of the ZEE5 Intelligence Monitor QDS report, ZEE Entertainment Enterprises Limited chief operations officer – revenue Rajiv Bakshi said, “The appeal of doorstep delivery is the main draw for QDS apps, but trust and privacy also play a role. Women users benefit uniquely from time-saving, and QDS apps are on the verge of nationwide adoption, especially among non-metro users. ZEE5 Intelligence Monitor – Quick Delivery Services (QDS) is the latest edition undertaken to identify trends, map behaviours and deliver actionable insights into consumer’s attitudes towards products and services across categories. In the digital age, QDS apps empower women and promise future innovations for businesses. This report, with its data depth and creative capabilities, offers QDS players a great opportunity to communicate their value effectively.”

    The report suggests that India’s digital evolution is taking a new turn, with next-gen consumers as well as non-metro users embracing Quick Delivery Service (QDS) apps. This trend underscores the importance of customization for regional success such as specialized product categories and localized delivery strategies, which strongly resonate among diverse preferences, offering an edge in this dynamic landscape. Innovations in the QDS ecosystem, empowering small brands and reshaping grocery shopping among smaller town consumers driven primarily by convenience and time-saving opportunities.

    ZEE5 Intelligence Monitor is a pioneering effort to bring industry-specific consumer insights based on research conducted by one of India’s largest entertainment platforms, ZEE5. Aimed at aiding business leaders and marketers in their decision making, in addition to tracking consumption and buying habits, this research also provides an insider view on factors that influence consumers’ purchase decision process. The report also showcases varied point of view and nuanced perspectives from leading brands and experts from the broader marketing ecosystem.

     

  • KCCL signs subscription agreement under NTO 3.0

    KCCL signs subscription agreement under NTO 3.0

    Mumbai : The interconnection subscription agreement with the broadcasters was signed by MSO Kerala Communicators Cable Ltd (KCCL) in accordance with the Trai-mandated NTO 3.0 after UCN.

    Now that the Trai’s new rate order has been modified, KCCL has joined a growing group of MSOs, including Siti Cable, KAL Cables, Tamil Nadu Arasu Cable TV, and Thamizhaga Cable TV, that have agreed to negotiate interconnection agreements with the broadcasters.

    Even as the legal dispute between cable operators represented by the AIDCF (All India Digital Cable Federation) and the broadcasters continues in the Kerala High Court, there now appears to be a rift within the cable fraternity in its fight against the broadcasters regarding signing the interconnection agreements under the NTO 3.0.

    Den, Fastway Transmissions, GTPL Hathway, Hathway Digital, and other MSOs are among those that are still engaged in this conflict with the broadcasters.

    Leading three broadcasters (Sony, Disney Star India, and Zee Entertainment) cut off their signals to nearly ten MSOs on February 19 who are AIDCF members.

    Broadcasters are justifying the increase in price after a four-year hiatus. Cable operators, on the other hand, claim that the price increase is exorbitant and will raise consumers’ monthly cable bill. They have also filed numerous petitions against the amended tariff regime in the country’s high courts.

    AIDCF claims that despite the fact that the case is in court, these major broadcasters disconnected their signals.

    Meanwhile, AIDCF has warned advertisers, media planners, and ad agencies, against advertising on Disney-Star, Sony and Zee, because their recent actions have “deprived more than 25 million households across India from watching their channels since Saturday, 18 February 2023.

    The federation claimed that the 25 million homes account for nearly 35 per cent of the pay TV market in India.

    “Are you still getting the reach that you have paid for? Your advertisements are not reaching more than 200 million consumers across all states and Union Territories in India for the past three days. More than 46 billion minutes of viewing time are being lost per day across India on the largest cable networks in India including GTPL, DEN, Hathway, Fastway, In Cable, NXT Digital, Asianet, KCCL, UCN and many more. These networks cater to large audiences in HSM as well as South with dominant presence in Punjab/Haryana/ Chandigarh HP, UP Uttarakhand, Gujarat, Rajasthan, Maharashtra, West Bengal Odisha, Madhya Pradesh/Chhattisgarh, Bihar/Jharkhand, North-East, AP Telangana, Kamataka, Kerala, Tamil Nadu, etc,” said a release by AIDCF.

    The industry body warns the advertisers to take an informed decision when they advertise on any of the channels including Star Plus, Zee TV, Sony.

  • Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Mumbai: Sony and Zee have agreed to sell three hindi channels voluntarily – Big Magic, Zee Action, and Zee Classic – in order to address potential anti-competitive concerns raised by their proposed mega-merger. The regulator made public its detailed 58-page order on Wednesday, more than three weeks after giving its approval for the transaction.

    According to the order, the two groups have agreed to divest Big Magic, a hindi general entertainment channel, as well as Zee Action and Zee Classic, both Hindi film channels.

    They voluntarily agreed to the modification to the proposed deal after CCI determined that the deal would have a significant adverse effect on competition.

    They presented their proposal to the Competition Commission of India (CCI), which approved the deal with conditions on 4 October.

    CCI announced on October 4 that it had approved the “merger of Zee Entertainment Enterprises Limited (ZEEL) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), with certain modifications”.

    Previously, CME was known as Sony Pictures Networks India Pvt Ltd. (SPNI). In September 2021, ZEEL announced a non-binding term sheet with SPNI to merge their linear networks, digital assets, production operations, and programme libraries.

    Deals exceeding a certain threshold must be approved by CCI, which seeks to ensure fair competition in the marketplace.

    CCI announced on 4 October that it had cleared the proposed Zee-Sony merger deal, which was announced in September of last year.

    To ensure fair competition in the relevant markets, the regulator has also mandated that the purchaser meet a number of requirements before purchasing the three channels.

    One of the requirements is that the buyer not be “Star India Private Limited or Viacom18 Media Private Limited (including their respective affiliates)”.

    The purchaser should be completely independent of and unconnected to the resulting entity and its affiliates. According to the order, it also cannot be a former or current employee or director (or the spouse or child of such an employee or director).

    Among other things, the purchaser must have the financial resources, expertise, and incentive to keep and grow the divestment business as a viable and active competitor to the parties and/or the parties’ affiliates.

    “The purchaser should neither be likely to create any prima facie competition concerns, nor give rise to a risk that the implementation of the order will be delayed, and must, in particular, reasonably be expected to obtain all necessary approvals from the relevant regulatory authorities for the acquisition and operation of the divestment business,” the order said.

    The CCI further stated that the planned merger would be judged to have had a significant detrimental impact on competition in India if the parties did not comply with the voluntary adjustments presented.

  • Zeel to create cross-platform content solutions for brands with Zee Brand Works

    Zeel to create cross-platform content solutions for brands with Zee Brand Works

    Mumbai: Zee Entertainment Enterprises Limited (Zeel) on Thursday announced the launch of  its brand solutions vertical Zee Brand Works.

    Zee Brand Works team will work with brands for their branding, sales augmentation, customer acquisition, new launches, content creation, influencer and integration solutions. It will provide brands and marketers with offers to enhance their reach, connect and engage with the right audience through Zee’s portfolio of TV channels, OTT platform Zee5 and social media platforms.

    Zee Entertainment Enterprises Limited chief growth officer Ashish Sehgal said “As a pioneer in the Indian Media landscape, we have always had a finger on the pulse of the Indian viewer. This has helped us to develop a deep understanding of the myriad mini-Bharat’s which exist within this great nation, each with its own set of norms, sensibilities and traditions. Blending this understanding of the Indian consumer with the marketing requirements of our clientele to develop bespoke brand solutions has always been a hallmark of ZEE.”

    Zee Brand Works chief operations officer – revenue Rajiv Bakshi expressed, “Consumers are also increasingly rewarding authenticity and personalization along with purpose-driven brand alignment.”  

    He further said, “Forging a deep emotional connect and occupying a greater share of the mind is a primary challenge for both existing and emerging brands. Zee Brand Works will further boost our endeavor to build brands’ resonance and sales in Hindi-speaking markets (HSM) and regional market clusters by employing the team’s ingenious creativity and inherent consumer understanding. With the onset of this journey, we are excited to partner with like-minded marketers and augment their growth strategies.”

    Zee Brand Works has also introduced new programs keeping audience reach across brands. It will focus on designing product launches that offer brands visibility, importance, and traction leveraging Zee’s network robustness across linear TV, OTT, on-ground and social.  

    It will also focus on offering creative solutions to young entrepreneurs to give exposure to their key successes, and contribution to companies’ success and growth.

    Zee Brand Works’ work for clients such as Pedigree, Dabur Honey Fitness, Ultra Tech Baat Ghar Ki, etc. has won accolades and it is working with advertisers such as GSK India, Pedigree, P&G, UltraTech Cement, Perfetti Van Melle, Philips India, Maruti Suzuki India Limited, Mankind Pharma, MTR Foods, Asian Paints, Swiggy and Amazon amongst others.

  • Shariq Patel resigns as CBO of Zee Studios

    Shariq Patel resigns as CBO of Zee Studios

    Mumbai: Zee Studios chief business officer Shariq Patel has stepped down ending his four-year association with the company.  

    A company spokesperson in a statement said, “We wish to confirm that Shariq Patel has resigned from the position of chief business officer, Zee Studios, to pursue his interests and passion outside the organization. Shariq has helmed the movies business successfully over the past few years and contributed immeasurably towards its growth. We wish him the very best for all future endeavours.”

    Patel spearheaded the movie business of Zee Entertainment Enterprises Limited (Zeel) and was responsible for various aspects of the value chain including movie purchase/production as well as monetisation across all markets – domestic and international.

    In a career spanning 26 years, Shariq has worked across industries in diverse sectors including financial services, radio, internet, telecom, sports management and film production.

     

  • Uptake of free DTH has come down since major broadcasters left: Punit Goenka

    Uptake of free DTH has come down since major broadcasters left: Punit Goenka

    Mumbai: The uptake of free direct-to-home services has come down since the major broadcaster networks collectively left the platform on 1 April, stated Zee Entertainment Enterprises Limited managing director and chief executive officer Punit Goenka during an earnings call.

    The company reported its fourth quarter and yearly results for the financial year ended 31 March. Goenka said, “Cord-cutting has slowed down now that GECs (general entertainment channels) have come out of the Free Dish platform. So far, the decline in subscription revenues has been because we were losing subscribers. The good thing is we’re not losing subscribers to digital but rather subscribers are migrating from pay linear to free linear TV.”

    On merger with Sony Pictures

    Goenka also shared an update on the merger process between Zee and Sony Pictures Networks India. The two companies had signed a definitive agreement in December 2021 and submitted key documents with the stock exchanges for the necessary approval. Analysts queried Goenka whether the timeline for completion of the merger would remain at eight to nine months as the company was still awaiting approval from the exchanges.

    “My speculation is that because this is a large merger there have been a significant number of queries by the stock exchanges that we have been answering. It has been two weeks or ten days since we last got any query from the exchange and I am still positive towards the eight to nine months timeline,” replied Goenka.

    Zee is expected to be one of the major contenders for the Indian Premier League (IPL) media rights auction that is set to begin on 12 June. With the merger process still underway, analysts asked Goenka whether Zee was in a position to bid for the media rights without the capital infusion of $1.57 billion (~Rs 12,000 crore) from Sony.

    “We have a healthy balance sheet and we can participate (in the IPL media rights) on our own,” said Goenka. He also noted that the TV and digital rights package being sold separately “doesn’t preclude us from bidding for either part of all of the rights packages being sold.”

    Goenka stated that the company is still evaluating its strategy concerning IPL media rights.

    Zee expects its advertising revenues to face pressure in the coming quarter due to the inflationary situation that has impacted FMCG advertisers who account for up to 53 per cent of ad spend on the network.

    The company also expects to see a short-term impact on ad revenues after pulling its GECs from the Free Dish platform. “This will be a transitional impact and we expect to recover as intended benefits accrue on the pay side of the business,” remarked Zeel chief financial officer Rohit Gupta.

    He added, “In FY23 from a quarter-on-quarter progression perspective we expect the margins to improve as we progress through the year.

    The first quarter will have the most immediate impact in terms of inflationary dynamics. FTA drop, accelerated investments and seasonal expenses such as increments etc., will have an impact on revenues. As revenues scale up in subsequent quarters, we expect margins to start inching up in the later part of the year.”

    The embargo on NTO (New Tariff Order) 2.0 continues to impact the broadcast industry in terms of subscription revenues. However, the management of Zee expects to see a positive quantum in terms of revenue growth for FY23 now that the pandemic has subsided.

    Zee reiterated its commitment to scale investments in content, technology and product. The company is particularly increasing investments on OTT content with more regional content in the pipeline and partnering with global studios, independent creators and premium content production houses. Zee5 saw 31 per cent growth in revenues for FY22 and its global monthly active users (MAUs) stood at 104.8 million. Average watch time on the platform increased to 214 minutes.

    Following the success of “Kashmir Files” that grossed Rs 200 crore in the box office, Zee Studios is gearing up to release 20-25 movies this year.

    On the linear TV side, the company plans to increase investments in its Hindi, Marathi and Tamil portfolio of channels to grow market share.

    Linear TV market

    Zee’s linear TV market share declined to 17.1 per cent in Q4 2022. Zee has also considerably brought down its debt to Dish TV India from Rs 5.8 billion in March 2020 to Rs 2.4 billion in March 2022.

    The company reported operating revenue of Rs 8189.3 crore up by 14.1 per cent year-on-year. Its profit after tax increased by 31.7 per cent and stood at Rs 964.4 crore. Advertising revenue stood at Rs 4396.5 crore in FY22 up by 18 per cent year-on-year. Subscription revenue remained stable at Rs 3246.6 crore. The company’s expenditure for the year came up to Rs 6467.3 crore out of which operating expenses stood at Rs 4044.9 crore. The company’s programming and technology costs increased year-on-year driven by higher theatrical revenue, continued investments in Zee5 and new launches across the market.

  • Zee onboards Sandeep Pillai as director of marketing – music cluster

    Zee onboards Sandeep Pillai as director of marketing – music cluster

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) has brought on board Sandeep Pillai as director of marketing for its music cluster.

    In this new role at Zee, Pillai will be leading the brand strategy, management and new launches for Zing across ATL/BTL/digital/PR.

    He previously served at Times Network for eight years as deputy general manager for Movies Now, MN+, and MNX.

    An engineer turned marketer, Pillai has over 14 years of experience in building brands, creating award-winning marketing campaigns and driving growth across categories.

    His expertise lies in media planning, brand management and consumer marketing strategy with a mix of above-the-line, digital, below-the-line and strategic partnerships.