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Tag: Zee Group

  • Videocond2h’s Amit Dhanuka joins IndiaCast as SVP for intl biz

    Videocond2h’s Amit Dhanuka joins IndiaCast as SVP for intl biz

    MUMBAI: IndiaCast Media Distribution, a joint venture between TV18 and Viacom18, has appointed Amit Dhanuka as senior vice president for their international business division.

    Based in Mumbai, Dhanuka will oversee Asia Pacific business, international syndication, outbound ad sales as well as content and commercial affairs.

    Prior to joining IndiaCast, Dhanuka was with Videocon D2H where he drove the content strategy, packaging and VAS. He comes with over 12 years of experience in media and entertainment. He has also worked with Sony Pictures Television International, E- City and the Zee Group.

    IndiaCast COO Gaurav Gandhi said, “We are delighted to have Amit on board with us. Given his diverse experience both on the content and commercial side in media and broadcast, we are confident that he will play a very key role as we take our international business to the next level.”

    Dhanuka said, “IndiaCast has made a tremendous mark since its launch and I hope to build on that. I look forward to working with the team and bring in a new perspective for the growth of this fast growing organisation.”

  • Siti consolidated Q3 loss widens 47% Q-on-Q to Rs 185.7 million

    Siti consolidated Q3 loss widens 47% Q-on-Q to Rs 185.7 million

    MUMBAI: Zee Group-promoted multi-system operator (MSO) Siti Cable continues to be in the red with the fiscal third quarter consolidated net loss widening 47 per cent to Rs 185.7 million from Rs 126.5 million a quarter earlier on rise in expenses due to digitisation.

    Siti Cable’s consolidated operating profit for the quarter, however, increased 7 per cent to Rs 202.5 million from Rs. 189.3 million a quarter earlier.

    The consolidated operating revenues for the third quarter rose 33 per cent to Rs 1.24 billion from Rs 935.3 million a quarter earlier.

    Operating revenue is primarily generated from subscriber related income, income from bandwidth charges, income from advertisements and set-top-box (STB) activation.

    Total consolidated operating expenses for the quarter stood at Rs 1.04 billion, a 23 per cent increase from Rs 850.6 million a quarter earlier.

    The company’s main operating expenses include cost of goods and services, employee costs and selling & distribution expenses.

    Major cost item was cost of goods & services recorded as Rs 768 million during the third quarter, representing 62 per cent of the total revenue. It increased 24 per cent from Rs 621.5 million a quarter earlier, when it was 60 per cent of the total revenue then.

    Siti Cable COO Anil Malhotra commented, “Siti gained further momentum in the third quarter of fiscal 2013. We were able to maintain our margins through operational efficiency improvements despite increased operating expenses.”

    Malhotra said that the company had seeded 1.5 million set top boxes (STBs) during Phase-1 of digitisation in Delhi, Mumbai and Kolkata and had added approximately 700,000 STBs during the third quarter.

    The STB seeding done by the company is under the paid scheme and the payments were realised on upfront basis, Malhotra said.

    “We are now in exciting phase of our journey as we strengthen our existing operations and expand our digital subscriber base in phase-2 cities as well. We believe that experiences gathered from Phase 1 will form the basis for phase-2 switch-over to digital, helping to speed up the exercise eventually,” he said.

  • Trai’s ad review policy to hurt biz models of sportscasters

    Trai’s ad review policy to hurt biz models of sportscasters

    MUMBAI: In line with the stated position of their industry peers, leading sports broadcasters Neo Sports Broadcast, Taj Television, and ESPN Software have red flagged Telecom Regulatory Authority of India’s ad time review policy that has the potential to upset business models of the broadcasting industry.

    In their response to Trai’s consultation paper on “Issues Related to Advertisements in TV Channels”, all the three sports broadcasters have unequivocally objected to the regulators interference in the matter over which it has no jurisdiction.

    Zee Group-owned Taj Television, which operates four sports channels, has termed the move as “untimely”. The company contends that the premise on which Trai has initiated this policy, that the country is moving towards digitisation and subscription income for broadcasters will jump multifold to become the primary source of revenue stream, is wishful thinking.

    It also said that any consultation on the premise of digitalisation should be done only after the system becomes fully addressable wherein income arising out of subscription revenue sees a significant gain.

    “It is pertinent to point out that only four metros in the entire country would be digitalised in the first phase beginning 1st July 2012 and it is expected to be rolled out in four phases to be completed by 2014 with lot many more challenges along the way till complete digitisation reaches every nook and corner of our country,” Taj said in its response to Trai‘s consultation paper.

    “During this interim period the broadcaster would be saddled with problem of under declaration of subscriber numbers (in the non – notified areas), high cost of acquisition of content which is spiraling every year. Therefore, in our humble submission we put forth that there is no need to bring in any fresh regulatory norms for Advertisements in TV channels and let the channels self regulate the time span, format and frequency of the advertisements,” it added.

    In mid-March, Trai had come out with a consultation paper on “Issues Related to Advertisements in TV Channels” seeking views on different maximum limits for the duration of ads in free-to-air (FTA) and pay channels on an hourly basis.

    Trai proposed to limit ads of FTA channels to 12 minutes in an hour. For pay channels, this limit should be six minutes, according to Trai‘s proposition for which it wants to take the views of the stakeholders before framing out its recommendations.

    In case of sporting events being telecast live, the regulator feels the ads should only be carried during the interruptions in the sporting action – for example, half time in football or hockey match, lunch/ drinks break in cricket matches, game/set change in case of lawn tennis etc.

    What can adversely affect the sports genre most is that Trai is also in favour of allowing only full screen ads. In its view, part screen ads should not be permitted. Drop down ads should also not be permitted, Trai feels.

    Presenting its viewpoint, ESPN Software India, the India arm of ESPN Star Sports, has argued that the consultation paper goes against Trai‘s position of favouring self-regulation.

    It further said that the authority‘s decision to single out sports and news genre will be detrimental to the business models of these two genres. That sports content has a shorter shelf life only compounds the matter.

    ESI also said that the international practices cited in the consultation paper do not compare well since the frameworks within which those broadcasters operate is completely different.

    “The fact is that most of the jusrisdicstions covered do not operate under regimes where price ceilings prevail and thus allows broadcasters far more options even if advertisements are subject to regulation,” the ESI response read.

    The company in its submission has laid down that the should be on a 24 hour basis rather than than hourly basis.

    “Such a proposal demonstrates the inherent deficiency where niche channels such as sports channels have not been considered. A clock hour basis measure would not suit this genre of channels where live content is seasonal, limited to a specific period and natural breaks where advertisement would be appropriate (For eg half time in Football or Hockey, lunch/drink breaks in cricket),” ESI held.

    Neo Sports Broadcast asserted that the ad time review proposal would hamper the only revenue generation mode of sportscasters who are already suffering due to mandatory feed sharing with Prasar Bharti which robs them of the exclusivity that is the sole critereon for extracting premium from advertisers.

    Neo also bemoaned the fact the broadcasters are at the mercy of Trai when it comes to pricing, which has also been an impediment to growth.

    “Sports model is a very unique model where many content by its very nature have extremely limited scope to fully monetise its value and hence the channel consciously purchase other properties that offer revenue opportunities and subsidise for loses incurred on other properties. Hence a straight jacketed application of the advertising rule will be completely prejudicial to the business model of sports,” Neo said.

    Also Read:

    Trai reviews ad time policy for TV channels

  • Sahara to transfer broadcasting operations to listed firm

    Sahara to transfer broadcasting operations to listed firm

    MUMBAI: Sahara Group will be transferring the broadcast operations of its entertainment channels to the listed company, Sahara One Media & Entertainment.

    This is part of the commitment made to C Sivasankaran and BCCL (Times Group holding company Bennet Coleman & Co Ltd) when they acquired stakes in Sahara One Media & Entertainment last year, a source familiar with the deal says. While Sivasankaran’s Aircel Televentures (later renamed Siva Ventures) picked up 14.98 per cent for Rs 1.2 billion, BCCL acquired close to 6 per cent stake in the company.
    The broadcast operations are currently under Sahara India TV Network, a division of Sahara India Commercial Corporation Ltd. “The plan is for the listed company to also have the broadcast operations under it,” says the source.

    The transfer will mean that Sahara One Media & Entertainment will be able to capture the advertising revenues from the two existing channels, Sahara One and Filmy. The company currently earns from the programming it licenses to Sahara India TV Network and from its motion pictures business.

    “Sahara One will be able to capture the full part of the value chain. The entire infrastructure will be under one company,” says the source.

    The cost of running the channels including transponders and carriage fee will, thus, come under Sahara One Media & Entertainment. But there would be no transfer of the assets and liabilities of Sahara India TV Network. “The idea is to start with a clean slate and then build the broadcasting value,” says the source. “Under the current system, Sahara One does not run any commercial risk in the TV business as it produces content and passes it on to the channel on a cost-plus-commission basis,” he adds.

    Sahara’s news channel business also has a separate broadcasting arm and is under Sahara India TV Network (2). Sahara runs six news channels – in the national, regional and city-centric space.

    Meanwhile, the Sahara One Media & Entertainment board has approved raising of resources up to $ 20 million through foreign currency convertible bonds (FCCBs).

    “This will be used to meet the company’s working capital and content acquisition requirements,” says the source. Earlier, Sahara One had planned to come up with a provision to raise up to $50 million as it was at that stage in talks to acquire an equity in Ten Sports. Later Zee Group bought a 50 per cent stake in the sports channel for $57 million.

  • Zee launches Marathi news channel

    Zee launches Marathi news channel

    NEW DELHI: Zee News Ltd. has launched its Marathi news channel Zee 24 Taas as part of a “region-specific strategy.” This is the country’s first 24-hour news channel in Marathi.

    Says Zee News Ltd managing director Laxmi Narain Goel, “The news businesses of Zee group have had a history of ‘firsts’. Zee News is the first 24-hour Hindi news channel, Zee Business is the first 24 hour Hindi business channel, and now Zee 24 Taas continues the tradition by becoming the first 24 hour Marathi news channel.”

    Adds Zee News chief executive officer Harish Doraiswamy, “The launch followed careful thinking and a whole slew of researches in the market. Obviously, our understanding of Marathi viewer preferences through our experience of Zee Marathi helped us a great deal. I am sure the channel’s content and its presentation will appeal to the discerning Marathi audience.”

    Zee Network chairman Subhash Chandra had announced the launch of Zee’s Marathi news channel at the Zee Gaurav Awards on 5 February. The channel is already a strong player in the GEC with Zee Marathi.

    Zee News Ltd. is building a cluster of news, current affairs and regional channels. The company’s offerings include Zee News, Zee Business, Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, Zee Telugu, Zee Kannada, 24 Ghanta and now, Zee 24 Taas. It also provides news and entertainment content to Zee in USA, Europe, Africa, Middle East and Asia Pacific, the company said in a statement.

  • WWIL likely to raise $100 million via QIP

    WWIL likely to raise $100 million via QIP

    MUMBAI: Wire & Wireless India Ltd (WWIL), Zee Group’s demerged cable company, is likely to raise $100 million through qualified institutional placement (QIP) to fund its expansion programme including digitalisation and acquisition of cable operators.

    “WWIL is likely to raise $100 million via QIP as part of its fund raising programme but will take a final decision on this soon. Everything will depend on the market conditions,” a source close to the company says.

    When contacted, WWIL managing director Jagjit Singh Kohli said the exact amout and instrument has not yet been decided. “I will be able to comment after we have decided and taken the shareholders’ approval,” he added.

    WWIL is making a preferential issue of convertible warrants to Jayneer Capital, a promoter group company, up to Rs 1.31 billion as part of its fund raising programme. This will translate to around 5 per cent equity in WWIL. The conversion price of the warrants into equity shares will be at Rs 122. The company has convened an EGM (Extra Ordinary General Meeting) on 26 February for shareholders’ approval on the issue of preferential warrants.

    “The dilution, along with the warrants, will be around 20 per cent at the current prices if WWIL takes up the $100 million mopping up exercise through QIP,” the source says.

    WWIL has aggressive plans to expand its digital cable business and had earlier projected a fund requirement of Rs 7.14 billion over two years.

    The company recently announced that it would seek shareholders’ approval for raising up to $250 million (approximately Rs 11.25 billion). The board which met on Monday considered all the fund raising options including issue of ADR (American depository receipt), GDR (global depository receipt), equity, debt, debentures, FCCB (foreign currency convertible bond), QIP (qualified institutional placement) and convertible warrants.
     

  • WWIL plans to raise up to $250 million

    WWIL plans to raise up to $250 million

    MUMBAI: Wire & Wireless India Ltd (WWIL), Zee Group’s demerged cable entity, plans to raise up to $250 million (approximately Rs 11250 million) for funding its expansion programme including digitalisation and acquisition of operators.

    The board which met on Monday considered all the fund raising options including issue of ADR (American depository receipt), GDR (global depository receipt), equity, debt, debentures, FCCB (foreign currency convertible bond), QIP (qualified institutional placement) and convertible warrants. The board has decided to convene a general meeting of the shareholders.

    “This is is just an enabling resolution and we plan to decide on the amount we are going to raise and how within 15 days,” says WWIL managing director Jagjit Kohli.

  • WWIL Q3 net loss at Rs 159 million

    WWIL Q3 net loss at Rs 159 million

    MUMBAI: Wire And Wireless India Limited (WWIL), Zee Group’s demerged cable company, has posted a consolidated net loss of Rs 159 million for the third quarter ended 31 December 2006.

    The consolidated revenues stood at Rs 513 million for the quarter and Rs 1.5 billion for the nine-month period. Operating losses were at Rs 33 million after expensing Rs 38 million for office infrastructure. Being the first year of operations for WWIL, the previous period figures are not available.

    Commenting on the results Zee chairman Subhash Chandra said, “WWIL has just begun its rollout of digital cable services in the three metros of Mumbai, Delhi and Kolkata and it is encouraging to learn that we have been able to capture almost half of the market in these areas. Our analogue cable business continues to lead industry in connecting millions of television homes. The business initiatives of WWIL towards digitization of cable homes and upgrading of cable infrastructure would become visible in the performance from FY2008 onwards.”

    Added WWIL MD Jagjit Singh Kohli, “There is more than expected demand for set top boxes in Mumbai, Delhi and Kolkata. We expect that the industry will need at least 6 million set top boxes for complete roll out in these three metros. Demand for digital signals is equally strong in other cities, not notified under CAS. We see cable providing lot more value added services through digital mode. WWIL is heading towards its goal at an accelerated pace.”

    WWIL claims to have deployed 200,000 boxes. Said Kohli, “We believe there is a vast opportunity in cable TV industry, which is going through a rapid phase of consolidation and digitization simultaneously. Our goal is to add 3.4 million subscribers in next two years. Looking ahead, we are confident that continued execution of our distribution strategy would result in a revenue growth faster than that of industry.”

  • Subhash Chandra’s mother passes away

    Subhash Chandra’s mother passes away

    MUMBAI: Just as the fortunes have started favouring Zee Group, founder-promoter Subhash Chandra lost his mother today.

    Tara Devi passed away at around 5.30 pm.”She was ailing for some time now,” says Zee spokesperson Ashish Kaul.

    “Her body will be taken to Hissar in Haryana on Wednesday morning and the cremation will take place at 2.30 in the afternoon,” he adds.

  • Zee demerger scheme for Dish TV gets nod

    Zee demerger scheme for Dish TV gets nod

    MUMBAI: Subhash Chandra is all set to list the direct-to-home (DTH) business of Zee Group after having got the demerger scheme approval from the court. Already listed are the other entities – Zee Entertainment Enterprises Ltd (ZEEL), Wire & Wireless India Ltd (WWIL) and Zee News Ltd (ZNL).

    Zee Entertainment Enterprises Limited today announced the approval of its demerger scheme by the Hon’ble High Court of Judicature of Bombay. “This approval paves the way for setting the record date for the demerger of the direct consumer business undertaking of Zee into ASC Enterprises Limited (ASCEL), which is soon to be renamed to Dish TV India Limited,” the company said in a release. Dish has 1.6 million DTH subscribers.

    Says Zee Chairman Chandra, “This is the last phase of our current restructuring process – WWIL and ZNL are already independent companies listed on the stock exchanges in India. Dish TV would also get listed very soon and we are confident that all four companies will deliver long-term shareholder value.”

    The record date is likely to fall in the latter half of February. The shareholders of ZEEL as on the record date shall be allotted 57.50 shares in ASCEL for every 100 shares held.

    “Dish TV would then apply for listing of such shares to the BSE, NSE and CSE, in compliance with SEBI guidelines. ZEEL expects the listing process to be completed by February,” the release said.