ITV

Tag: Zee Gujarati

  • ”We have created a basket of Marathi channels to dominate our position in this market’ : Nikhil Sane – Zee Marathi and Zee Talkies business head

    ”We have created a basket of Marathi channels to dominate our position in this market’ : Nikhil Sane – Zee Marathi and Zee Talkies business head

    Subhash Chandra realised as early as 1999 that the next wave of Zee network’s growth would be in the regional broadcasting space. Up came a clutch of channels including Zee Marathi, Zee Bangla, Zee Punjabi and Zee Gujarati.

     

    Chandra has cemented his leadership position in the Marathi market with the launch of a news channel, Zee 24 Taas, and a movie channel, Zee Talkies.

     

    Following the vertical integration model, Zee has also got into the Marathi film production business.

     

    Starting as the first private Marathi channel on 15 August 1999, the initial years were slow. With the launch of ETV Marathi in 2001, Zee Marathi, in fact, even lost its leadership position. But it was in 2005 that things paced up as Zee Marathi scaled up its distribution and programming. Reality content through shows like Saregamapa, Eka Peksha Ek and Hasya Samrat gave the channel a big boost in ratings.

     

    In an interview with Indiantelevision.com’s Gaurav Laghate, Zee Marathi and Zee Talkies business head Nikhil Sane talks about the 10-year journey of Zee Marathi.

    Excerpts:

    Zee launched its Marathi general entertainment channel on 15 August 1999. How has the 10-year journey been?
    Everyone was skeptical at that time about Zee’s decision to launch a Marathi channel. In Maharashtra, Hindi channels – Zee TV, Sony Entertainment TV and Star Plus – were dominating television viewership. The only available Marathi content then was on Doordarshan – that also for four hours. So launching the channel way back in 1999 was a big, big step.

    But wasn’t it a big advantage to be the first private Marathi channel?
    In 1999, the Marathi TV industry was non-existent. So you can say that we created the Marathi TV viewing audience. What we got was a lot of talent. Maharashtra has produced ace directors, writers and actors, who supported us in this endeavour passionately. And we offered them a robust platform. So, Zee Marathi played a pivotal role in shaping the Marathi entertainment industry.

    What was the programming mix for the channel then?
    As I said earlier, there was no scarcity of talent, but it was scattered. With our launch, people from Marathi theatre and cinema joined us. That time we were experimenting a lot. We were the first channel to launch a daily show, Abhaalmaya, at 8.30 pm. The competition was against Amaanat on Zee TV, Heena on Sony TV and Saas on Star Plus.

     

    We got a humongous response for the show. Soon after, we launched the afternoon slot with Maansi, which again got a good response from viewers.

     

    Step by step, we increased our prime time, which at present is from 6 pm till 11 pm. We launched weekend programming, reality shows, events and even entered into film production business.

     

    Meanwhile, we launched the news channel (Zee 24 Taas) and the Marathi movie channel (Zee Talkies) to create a basket of channels and dominate our position in this market.

    When did you extend your prime time?
    We had a prime time from 7.30 to 10 pm till 2006. We extended this to a four-hour band starting 7 pm. We also had hourly news bulletin, which were very popular. Later, as we launched our own news channel, we shifted news from Zee Marathi.

     

    Earlier we used to air weekend movies on Zee Marathi. But as we launched Zee Talkies, the movies were shifted and we started daily soaps from Monday-Saturday.

    ‘It was in 2005 really when Zee Marathi scaled up its production, distribution and programming’

    You said initial years were experimental. So when did you manage to strike the right formula for growth?
    We launched some very good shows in our first five years. But it was in 2005 really when Zee Marathi scaled up its production, distribution and programming. It was like a channel revamp.

     

    We created reality shows like Saregamapa (singing talent hunt), Eka Peksha Ek (dance reality show) and Hasya Samrat (comic reality show). Recently, we launched Hapta Band, a quiz-based show.

     

    Also, we organised grand scale events like finale of reality shows, Zee Gaurav Puraskaar (awards for films and theatres) and Zee Marathi awards (viewer’s choice awards for Zee Marathi shows).

    What were the milestones in programming?
    We experimented with different genres. Our comedy show Hasa Chakatful saw performances from the best performers of the industry. Shriyut Gangadhar Tipre was also one hugely popular comic fiction.

     

    Among fictions, Abhaalmaya, Avantika, Asambhav, Vaadalwaat and recently launched Kulvadhu got us good viewership. Our reality shows and events also are some of the most popular properties on Marathi television.

     

    Apart from these, we had shows devoted to literature (Pimpalpaan), poets and musicians (Nakshatranche Dene) and horror (Gahire Paani).

    ETV, which launched in July 2001, emerged as a strong competitor and even surged ahead of Zee Marathi at one stage. What were the reasons?
    After a fabulous three-year ride, we had a tough patch for two years. ETV Marathi launched with a very strong distribution and this impacted us. We were popular in towns, though. But after 2005, we focused on every aspect of the business.
    Now there is new competition from Star Pravah. While other channels like Mi Marathi and Saam Marathi have launched, they haven’t really been able to shake things up. So do you see a three-player fight in the Marathi GEC landscape?
    If you see our current ratings in Maharashtra, we are only below Zee TV while outnumbering Star Plus, Colors and other national GECs. That is what our competition is. Today, Hindi viewership amounts to 26 per cent while Marathi is 20 per cent in the state. We have a lot of space to grow here. Also, competition gives advantage to viewers ultimately as they get variety. And it grows the market.

    You talked about entering into the film production business and have so far released six movies. How are you scaling this up?
    After establishing Zee Marathi, the natural progression was to launch a movie channel. So we launched Zee Talkies. The next logical step was to enter into the film production business ourselves.

     

    We have, in a big way, led the revival of the Marathi cinema industry. So far, our movies have done good business.

     

    We have released Saade Maade Teen, followed By De Dhakka, Galgale Nighale, Dudgus, Ek Dav Dhobi Pachaad and Gallit Gondal Dillit Mujra.

     

    The next movie we are ready with is Hai Kai Nai Kai. We have signed five directors for three films each.

    So how do you see the Marathi broadcasting space evolving?
    The time ahead is surely challenging. We have to be open to change and need to continuously evolve to stay ahead of competition. And by competition I do not mean Marathi or even Hindi GEC channels. The main competition is with new media. With so much available on different platforms, attracting viewers to TV will be a challenge.

     

    From now on, the biggest question to ask ourselves would be ‘what next’. Hindi GECs will survive as their base HSM (Hindi speaking market) is very big. Innovation is the only way to keep ahead in this Marathi TV broadcasting space.
  • ‘Our focus in 2009 will be to maintain profitability and not get into adventurous ventures’ : Bharat Ranga – Zee Entertainment Enterprises Ltd. COO international operations

    ‘Our focus in 2009 will be to maintain profitability and not get into adventurous ventures’ : Bharat Ranga – Zee Entertainment Enterprises Ltd. COO international operations

     

    A sliding global economy has turned up the heat on the international businesses of the Hindi content broadcasters.

     

    In 2008, Zee group stretched its wings in Russia while deepening its presence through the launch of Veria (the natural wellness channel is part of the Essel Group initiative) and Aflam (a Hindi movie channel with subtitles in Arabic) in the US and the Middle East respectively. Riding on a bull market, the group also launched a radio business in the UK.

     

    The 2009 landscape will be far different, more punitive, and starkly grim. Delinquent ventures will be avoided and risky bets put on hold.

     

    Zee Sports, thus, will not travel to other countries as the RoI (return on investments) just does not work out. In the US, it was launched as Zee Sports America because a partnership was hatched with EchoStar.

     

    Zee Entertainment Enterprises Ltd (Zeel) will make efforts to guard turf in its two main markets – UK and the US – which make up 70 per cent of its total international revenues.

     

    With around one-fourth of its revenues coming from its international business, Zeel’s drive will be to maximise revenue opportunities from each market.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, Zeel COO international operations Bharat Ranga talks about the need to value content appropriately, keep away from reckless expansion, and be tough on costs.

     

    Excerpts:

    Zee took several initatives to expand its global presence in 2008 like tapping the Russian market and launching channels in the Middle East and the US. Will the global downturn force a more conservative strategy in 2009?
    Our focus in 2009 will be to maintain our profitability and not get into adventurous ventures. In these uncertain times, it is important to maintain stability. It is better to hold on to your growth plans than to expand recklessly in this market. We will have to be tough on our costs without compromising the value of our product.

    Will there be a drive to take Zee Sports to other markets after launching the sports channel in the US?
    We launched Zee Sports in the US in partnership with EchoStar. We work along with EchoStar on that brand. For launching in other markets, we feel that the RoI (return on investments) is not there at this stage.

    Will there be more subscriber churn and slowdown in Zee’s two main international markets, UK and the US?
    The global economic turmoil is bound to have an impact on these two markets, which make up around 70 per cent of Zee’s total international revenues. But growth in the US will be faster than in UK.
    ‘Zee treats its international biz as a SBU. The irony is that the South Asian players have not valued their content appropriately. Hence, the revenue potential remains untapped‘

    Why?
    UK is a tougher market because not all South Asian content is pay. This is not the case in the US. We, however, are pay in the UK and have five channels in that market – Zee TV, Zee Cinema, Alpha ETC Punjabi, Zee Gujarati and Zee Muzic. We have a subscriber base of 200,000, but it is growing slower. The yield, however, is higher and we are priced at 13 pounds a month for two channels. For each additional channel, we charge 5 pounds a month.

    Have you priced yourself lower in the US?
    No. But unlike UK, we are not retailing ourselves. We are part of EchoStar and other cable companies like Comcast and Time Warner. We enjoy a revenue share with them.

     

    One of our group initiatives to expand in that market was the launch of Veria, a natural wellness channel, last year. It is a very premium and growing segment and we are bullish about the channel’s growth. We do not have Zee Muzic in that market. Our subscriber base in Americas is close to a million.

    How far has Zee progressed in cracking the Chinese wall?
    We have applied for landing rights and are waiting for approval for over a year. We hope to get the permission soon. China is a very complicated market to crack and it is important to have a very clear business model in place. Many international media companies have invested billions of dollars in that market, but not gained much. We have taken a cautious approach and, meanwhile, have started a syndication buiness there. Foreign content syndication itself is tough as there are more rules stating why not to buy such content than why there is need for it. For us at Zee, China remains a romantic thought at this stage.

    Even Russia is considered to be a very difficult market, as Disney found out recently when it did not get the nod for taking a 49 per cent stake in a joint venture with local firm Media-One Holdings. What has been your experience so far?
    Russia is a cheap pay TV and advertising market. We launched Zee Russia last year, but the channel hasn’t taken off the way we expected. It is a pay channel with Indian content dubbed in Russian. We are at a nascent stage but, like China, it is an initiative for the future.
    ‘We launched Zee Sports in the US in partnership with EchoStar. For launching in other markets, we feel that the RoI is not there at this stage‘

    Zee had to rework on its strategy in the Middle East and shut down Zee Arabia. Why?
    We saw an opportunity for offering our content to local audiences in the Middle East. We tasted the water with Zee Arabia launch and learnt the nuances of the mainstream market. We replaced it with Zee Aflam, a free-to-air Hindi movie channel with Arabic subtitles, last year. Our Hindi offerings – Zee TV, Zee Cinema, and a hybrid channel of Zee News and Zee Gujarati – are, however, pay in that market.

    Since Zee Gujarati is wrapping up after 30 April, will that offering end in the international market as well?
    We have not decided if we will do away with that offering for our international audiences. We have standalone Gujarati audiences. We may have a repurposed channel by sewing up content from others. That business decision is yet to be taken.

    The rates of the Zee channels have stayed flat in UK at least. Has Zee lost pricing power in the international markets?
    There is room for hiking subscription and advertising rates, but it is not easy in this market condition. Besides, competitors have to work together for growing the size of the market.

    Which means that the revenue potential is still untapped?
    There are 35 million Indians residing outside India. There are also South Asians who consume Indian entertainment content. This throws up a nice business proposition. Zee is the dominant international player, with over 50 per cent market share. We reach out to 167 countries, have 200 people spread across 16 offices, and treat it as a strategic business unit (SBU). The irony of the international business is that the South Asian players have not valued their content appropriately. Hence, the revenue potential remains untapped.

    What is it that Zee has done right in the global arena?
    We learnt from our Indian market experiences and priced ourselves appropriately in the developed markets.
  • ‘The downturn will bring in corrections not just in carriage but in every other aspect’ : Barun Das – Zee News Ltd CEO

    ‘The downturn will bring in corrections not just in carriage but in every other aspect’ : Barun Das – Zee News Ltd CEO

    Churn. The television industry has been going through turbulent times with the economy downsliding and ad growth decelerating. Like its peers Zee News Ltd (ZNL) too has been riding the wave of turbulence with its unique mix of national news and regional language channels.

    While Zee News, Zee Marathi and Zee Bangla have been growing rapidly and notching up profits, Zee Telugu has turned operationally cash positive. The management has managed to keep losses from its ‘new businesses’ (channel launches in the south and Zee Talkies) under control; full fiscal loss forecasts stay unchanged at Rs 700 million, even though it is planning to launch a regional channel targeted at Uttar Pradesh. Simultaneously, it has decided to pull the shutters down on Zee Gujarati from 30 April as it was bleeding.

     

    ZNL is also pursuing growth through the franchisee model, an experiment not tried yet by the other news broadcasters. After partnering with SB Multimedia for a regional news channel in Chattisgarh, the company is keen to tap local entrepreneurs who desire to get into the TV news space in regions which do not occupy Zee’s immediate direct expansion plans.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, Zee News Ltd CEO Barun Das talks about the success of the Zee News channel following a repositioning exercise, the turn around of Zee Business, the emergence of new driver channels within the bouquet, the challenges of tiding over the global economic turmoil, and the company’s growth plans.

     

    Excerpts:

    Media companies are reeling under a severe ad slowdown. How has Zee News Ltd bucked this trend so far?
    We are helped by the fact that the regional language markets are growing faster. What is working for us is the composition of the bouquet. Some of the new regional channels have started delivering while the driver channels continue to post strong growth. The positive thing is that more channels like Zee Telugu, Zee Kannada and Zee Business are positioning themselves to get into the driver category over the next 12-18 months.

    Isn’t the economic downturn affecting regional markets as well?
    There is an overall slowdown. But regional television media markets are still in their nascent stages. The size of these markets is small and there is a lot of potential to grow them. The Marathi news market, for instance, is new. Even in the general entertainment space, the regional channels arrived much later than the invasion of private satellite television in national languages. Outside the southern region, it is the Marathi and Bengali markets that really matter. The other regional markets are small and I don’t see them growing to any significant size in the near future.

    Is this the time to take hard calls like shutting down Zee Gujarati?
    We critically reviewed the channels that are not likely to make profit in the near future and decided to close down Zee Gujarati with effect from 30 April. Our learning in that market shows that the revenue is too small as entertainment consumption happens primarily in Hindi. It didn’t make sense to linger with the channel and burn cash any more. We would rather focus on the bottom line of the company while strategically expanding our presence in other markets, products and services.

    Has the break even success of the Telugu general entertainment channel put you in a comfort zone in the southern region to launch more channels?
    We are backing up the progress of Zee Telugu with the launch in this quarter of Zee 24 Ghantalu, a Telugu news channel. Though Zee Kannada will not break even this fiscal, it would happen in the first or second quarter of FY’10. So yes, we have managed to open up the southern space for ourselves.

    How bullish are you about cracking the Tamil market, particularly when the Marans (Sun TV promoters) and DMK party chief and Tamil Nadu chief minister M Karunanidhi have smoked the peace pipe?
    We are investing Rs 900 million for the Tamil channel in the first year (capex+one year opex). We expect Zee Tamil to break even over 36-48 months. We have signed up with Sun Group’s cable TV arm SCV and the channel is well distributed. We are also in talks with Sun Direct for a presence of the channel on the DTH platform.

     

     

    What makes us stay bullish is that Tamil Nadu is the biggest regional market. Besides, there is only one player (Sun TV) in that market, giving us space to climb the ladder. We feel we have a good opportunity to be a strong No. 2 or No. 3. Also, we have started understanding the nuances of the southern market from our experience, planning and research in running a Telugu and a Kannada channel.
    ‘What is working for us is the composition of the bouquet. Some of the new regional channels have started delivering while the driver channels continue to post strong growth. The positive thing is that more channels like Zee Telugu, Zee Kannada and Zee Business are positioning themselves to get into the driver category over the next 12-18 months‘

    How much is ZNL going to lose from its new businesses this fiscal?
    We are sticking to our original guidance of an EBITDA loss of Rs 700 million from our new businesses (Zee Telugu, Zee Kannada, Zee 24 Taas, Zee Tamil, Zee Talkies and Zee 24 Ghantalu) this fiscal. There is no revision upwards despite us planning to launch a regional news channel in Uttar Pradesh.

    With the Indian economy coming under the shadow of a global recession, have you shelved plans to launch an English news channel?
    There is no additional expansion plan at this stage outside the launch of Zee 24 Ghantalu and a regional news channel in Uttar Pradesh. But we are exploring opportunities in the English business news space. There is a lot of potential, but we have not concretised our plan as yet.

    Marathi movie channel Zee Talkies got transferred from Zee Entertainment Enterprises Ltd (ZEEL) to ZNL. Will the company launch regional movie channels in each market where it runs a GEC?
    Theoretically, we should have a GEC, a news, a movie and a music channel in each regional market where we have a presence. But we are not getting into that gear at this stage. Our Marathi presence is the most widest, followed by Bengali where we are involved in two GECs. While we have the market leader in Zee Bangla, we have taken a 26 per cent stake in Akaash Bangla along with a channel management agreement.

    Will you be expanding in the near future through the franchisee model?
    After launching Zee 24 Ghante Chattisgarh under this model, we are exploring more such opportunities. There is a huge upside in revenues when the economic climate is more favourable; and the money goes straight into the bottom line.

    Is the flagship Hindi news channel growing at a slower pace?
    Along with the growth in viewership share, there is a significant revenue growth as well. After we relaunched the channel with a game-changing strategy, premium brands from sectors like cosmetics, automobiles, and IT – who were earlier not present as our advertisers – have come on board.

    How are you planning to push Zee Business which is considered as a laggard in comparison to its competitive channels?
    Zee Business has made rapid strides over the last several weeks and has moved up from a 11 per cent share in a four-channel market to a 26 per cent share in a five-channel market scenario. We have changed the look and feel of the channel, beefed up our research team, took it beyond a eight metro approach, targeted specific audiences, and focused on the SME sector. We have also concentrated on events; we would have conducted 47 events in the second half of the year. All this seems to be working for us.

     

     

    In fact, 2008 is also the year when 24 Ghanta went ahead to emerge as a leader in the Bengali news market with its focus on content, events and communications. We nullified Star Ananda’s strength in football coverage by acquiring the rights of the National Football League.

    Do you have plans to launch add-on channels like Tez to guard your flagship Hindi news channel?
    Primarily, our strategy is to have state-based news channels. This will continue to be our going-forward direction in the near future.
    Is subscription revenue looking positive with the entry of more DTH players?
    DTH is a growing segment and we stand to benefit from it. It currently accounts for 32 per cent of our subscription income.
    Will carriage costs continue to climb as more channels launch and continue to jostle for space on cable networks?
    With digitalisation growing, carriage rates will continue to slide. The downturn will bring in corrections not just in carriage, but in every other aspect.
    Including downsizing staff?
    Retrenchment is not required. But going forward, we will see how much we need to rationalise on our costs. We will scrutinise every cost, review every deal, and re-negotiate with our suppliers.
    In such a tough market, will you cut down on rates and play the volume game to consume ad inventory?
    The right strategy would be to provide better value than cut rates. Our plan is to offer tailor-made solution for clients and work on innovations. We are, for instance, getting four co-branded programmes on Zee News channel. The truth is that all of us have to stretch more than what we have ever done so far.
    How do you plan to survive the woes of 2009-10?
    It will probably be the worst year any of us have ever seen. Our endeavour will be to strongly hold on to the ground and use this period to prepare ourselves for being able to take the next big leap when we finally move out of the global recession.
  • ‘For the Zee Network, regional channels will be strong pillars’ : Nitin Vaidya – Zee Entertainment Enterprises Ltd. director regional channels

    ‘For the Zee Network, regional channels will be strong pillars’ : Nitin Vaidya – Zee Entertainment Enterprises Ltd. director regional channels

    As localized channels are gaining momentum on television, the Zee Network has been quick to grab untapped genres in regional markets. Spearheading four regional channels from the Zee bouquet, including Zee Marathi, Zee Bangla, Zee Gujarati and now Zee Talkies, is Zee Entertainment Enterprises Ltd director regional channels Nitin Vaidya.

     

    In a free flowing conversation with Indiantelevision.com’s Renelle Snelleksz, the Zee veteran outlines the growth trajectory of each region and the targets set for “regional channels to become the pillars of the Zee Network.”

     

    Excerpts:

    Zee has strengthened its position in Maharashtra with three channels – general entertainment, news and now movies. How has this market evolved and what is the growth story for Zee?
    In 1999 when we entered Maharasthra, there was a widespread belief that though Marathi audiences were bilingual, the market was largely Hindi skewed. It was expected that few viewers would be attracted to a Marathi channel.

     

    Till 2003, it was a real struggle but we were determined to provide value for the investors, for advertisers and for consumers.

     

    In 2003, the share of the Marathi television market was 8.3 per cent. Currently, the share of the market stands at 16.8 per cent (Tam data; January till Week 35, C&S 4+). Though Maharastra was believed to be Hindi dominated, the share of Hindi general entertainment channels dropped from 34.9 per cent in 2003 to 24.4 in 2007.

     

    Over the last four years, Zee Marathi has driven viewers to the genre through a very aggressive programming and marketing push.

     

    Evidence of that is seen in the channel share of Zee Marathi. In 2003, it stood at 40 per cent while ETV Marathi was at 35 and DD Sahyadri at 25. Although there was a decline in 2005, Zee Marathi has regained its leadership position in 2007 with a channel share of 45 per cent while ETV Marathi is at 36 and DD Sahyadri at 11.

    Can you identify the factors that contributed to Zee Marathi’s growth?
    We achieved two things in this market. Firstly, we were able to divert viewers from Hindi entertainment channels. In doing this we also changed the existing perception of the Marathi market being Hindi skewed. Secondly, the television universe as a whole has also grown considerably.

     

    This picture tells a story of how audiences are embracing local channels which they first try and then stick to. This gave us encouragement to invest monies behind this proposition.

    What is the growth that the Bengali market has witnessed?
    Bengal is far ahead of Maharasthra in terms of what has been accomplished as it consistently stayed ahead of Hindi GECs. In 2003, the Bangla market occupied a share of 28.6 as opposed to Hindi GEC which was at 22.9. The average for this year is 33.6 per cent share and Hindi GEC is 20.

    What were the differentiators used to combat competition and pull audiences from Hindi channels to Zee Marathi and Zee Bangla?
    We did not follow the set formula that is commonly used on Hindi GECs and replicate it for our regional audiences. We decided to take a different route and deliberately resisted the ‘saas-bahu’ dramas. Instead, we chose to focus on the interpersonal relationships that reflect the ethos of that particular region.

     

    These family dramas along with our popular musical format Sa Re Ga Ma Pa have been the major drivers of audiences for both these channels.

     

    Besides, we have not compromised on the production values for these channels and have attempted to extensively involve our viewers in daily programming through a host of interactive shows.

     

    This strategy even attracted urban viewers from Mumbai and Kolkata, areas considered too cosmopolitan for a regional channel. Both channels have surpassed Star Plus in C&S 15+ female SEC-A,B&C and while in C&S 4+ market Zee Bangla is far ahead of Star in Bengal, Zee Marathi is just 20 GRPs away from Star Plus in Maharashtra.

    But the growth witnessed by Marathi and Bengali has not been seen with Zee Gujarati – Why so? What was the setbacks that the channel encountered in this market?
    With Zee Gujarati we did have a problem. This too is a market strongly dominated by Hindi. With only three players in the game ETV, Zee and DD, the market has seen marginal growth over the last couple of years.

     

    Zee Gujarati requires the push that was given to Marathi and Bengali and going forward this is our plan. We will pump in more investments into the Gujarati market as well as rope in good talent and push our content more aggressively. One can expect to see a turnaround of Zee Gujarati.
    ‘Zee Gujarati will see a turnaround in the next two years‘

    What is the time line that Zee has set for revamping Zee Gujarati?
    Within the next two years, Zee Gujarati will witness a complete turn around. In fact, the potential of this market is more than that of Marathi and Bangla due to the mere consumption of the State. Therefore, we are putting serious monies behind the channel.

    How much will you pumping into Zee Gujarati?
    I would not like on that at the moment.

    What is the current ad pie for each of the three markets and what growth is expected in these regions?
    The ad revenue of the Bangla language channels in the Bengali TV market is expected to touch Rs 280 crore (Rs 2.8 billion) in 2007 and grow to a category share of 35 per cent. Meanwhile, Marathi language channels will cross Rs 225 crores to occupy 25 per cent share of the Maharashtra TV market this year. However, the Gujarati market is presently a mere Rs 50 crores.

    The network recently made its foray into the Marathi movie segment with the launch of Zee Talkies in August, what has been the response thus far?
    Although, we were aware of the untapped Marathi movie genre, the response to Zee Talkies has been phenomenal as it touched 70 GRPs in its first week of launch. The was far beyond our expectations.

     

    This was supported by an extensive marketing push of Rs 80 million dedicated to the launch campaign. We consciously decided that for the first 20 days the channel will not have a single advertiser. We wanted them to first see the response before they put money on the table. The numbers speak for themselves!

    As part of the network’s attempt to boost Marathi cinema, you tied up with three production houses for a slate of 15 films across two years. When will these movies be released and what is the investment outlay for these films?
    The first film will be released by the end of this year in theatres, following which it will be telecast on Zee Talkies. Close to Rs 10 million will be spent on each film.

    Do you have plans to enter Bengali film production as well?
    We are currently in talks with a few production companies for Bengali movies. We plan to get into Bengali film production very soon.

    Which production companies are you in talks with and what is the budget allocation for Bengali films?
    We have not yet zeroed in on the production houses yet, so it would be premature to talk about it now. But we will definitely be spending more than Rs 10 million on each film.

    So, are you looking to launch a Bengali movie channel as well?
    (Laughs) No! Not at the moment.

    Going forward what are the growth opportunities that you foresee in the three regions?
    The addressable television environment will definitely provide a huge thrust in pushing these channels ahead. For the Zee Network, the regional channels will be strong pillars. This will help grow both subscription and ad revenues for the network.
  • Zee plans to launch Southern channels overseas in Q1 2007

    Zee plans to launch Southern channels overseas in Q1 2007

    MUMBAI: Zee Network is planning to launch its two southern language channels overseas in the first quarter of 2007-08.

    There is no decision taken yet on which country Zee Telugu and Zee Kannada would launch first. “we are looking at taking these two channels to the international markets. There is a sizeable audience to be tapped,” says Zee’s south initiatives head Ajay Kumar.

    Zee is also preparing to launch a Tamil and a Malayalam channel to cover up all the southern language states. But these are tough competitive markets, dominated by Sun TV, Asianet and Surya.

    Zee’s aim is to have a presence across eight regional languages of India. Already available are Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, Zee Telugu and Zee Kannada. The focus will be on consolidating in these eight languages over the next five years by clubbing the language entertainment channels with regional news channels.

    The regional channels form a part of Zee’s demerged entity, Zee News Ltd (ZNL). Under this company also falls the news channel business.

    ZNL has projected a 33 per cent compound annual growth rate (CAGR) over the next five years to touch a revenue of Rs 8.7 billion by FY 2011, up from Rs 2.01 billion in FY 2005-06. The operating margins, which stood at 16 per cent, are expected to expand to around 30 per cent during this period.

    ZNL has a networth of Rs 1.7 billion. The capital employed (as of 1 April 2006) is Rs 2.31 billion with loan funds standing at Rs 612 million. The company has no major capex requirement at this stage.

  • 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.