Tag: Zee Telefilms.

Manic Monday: Media scrips join Sensex free fall

MUMBAI: It was truly a Manic Monday for Dalal Street. For the second time in the indices’ history (the first being on 17 May, 2004), trading was suspended at the BSE this morning. The Sensex fell by a whopping 1111.70 points in the morning trade below 10,000 to settle at 9,826.91.

However, it recovered substantially to close at 10,482 down 457 points. The NSE Nifty, on the other hand, closed at 3081 down 166 points. Media stocks, like the predominant market sentiment, were on a downslide.

In order to avoid pandemonium in the market, Sebi chief M Damodaran asked people not to go by rumours but to take informed decisions. According to him, Sebi was in touch with the RBI and there were no liquidity problems.

Among the entertainment and media stocks, one company that managed to beat the heat on the bourses was Times Group company Entertainment Network India Ltd (ENIL), which operates the Radio Mirchi brand. The company’s stocks opened at Rs 239.85 and closed higher at Rs 241.10, thus registering a marginal gain of 0.63 per cent.

The biggest loser today was Prannoy Roy’s NDTV Ltd. The stocks of NDTV opened at Rs 220 today and closed at Rs 190, weaker by 13.64 per cent. Mid-Day Multimedia, on the other hand, recorded a drop of 11.82 per cent and closed at Rs 61.15 (previous close Rs 69.35).

Pritish Nandy Communications shed 10.14 per cent to close at Rs 45.65 from its previous close of Rs 50.80. Hinduja TMT; which on Friday 19 May took the deepest plunge, going down by Rs 48.30 to close at Rs Rs 701.75; today dropped 3.10 per cent to close at Rs 680.

Sahara One Media and Entertainment Ltd and BAG Films both shed around eight per cent in today’s bloodbath. TV Today Network was weaker by 7.76 per cent to close at Rs 81.45 at the end of the day’s trade. K Sera Sera also lost 7.45 per cent and ended the day at Rs 36.05. Television Eighteen shed 5.18 per cent (down Rs 32.95 from yesterday closing at Rs 603.20).

Company
Last Traded Price
Previous close
Change
Per cent change
Adlabs Films
Rs 267.30
Rs 271.45
Rs -4.15
-1.53
BAG Films
Rs 9.63
Rs 10.54
Rs -0.91
-8.63
Balaji Telefilms
Rs 139.95
Rs 147.00
Rs -7.05
-4.80
Cinevistaas
Rs 21.45
Rs 22.55
Rs -1.10
-4.88
ENIL
Rs 241.10
Rs 239.60
Rs 1.50
0.63
ETC Networks
Rs 37.65
Rs 38.50
Rs -0.85
-2.21
Galaxy Ent
Rs 251.15
Rs 260.95
Rs -9.80
-3.76
Gemini Comm
Rs 420.00
Rs 433.30
Rs -13.30
-3.07
Hinduja TMT
Rs 680.00
Rs 701.75
Rs -21.75
-3.10
Jain Studios
Rs 27.60
Rs 29.00
Rs -1.40
-4.83
K Sera Sera
Rs 36.05
Rs 38.95
Rs -2.90
-7.45
Mid-Day Multimedia
Rs 61.15
Rs 69.35
Rs -8.20
-11.82
Mukta Arts
Rs 42.95
Rs 45.20
Rs -2.25
-4.98
NDTV Ltd
Rs 190.00
Rs 220.00
Rs -30.00
-13.64
Pritish Nandy
Rs 45.65
Rs 50.80
Rs -5.15
-10.14
Sahara One Media
Rs 324.00
Rs 354.00
Rs -30.00
-8.47
Saregama
Rs 241.65
Rs 254.05
Rs -12.40
-4.88
Sun TV
Rs 1159.55
Rs 1192.35
Rs -32.80
-2.75
TV Eighteen
Rs 603.20
Rs 636.15
Rs -32.95
5.18
TV Today
Rs 81.45
Rs 88.30
Rs -6.85
-7.76
UTV
Rs 176.00
Rs 183.55
Rs -7.55
-4.11
Zee Telefilms
Rs 228.20
Rs 229.60
Rs -1.40
-0.61

In the vicinity of the one – five per cent loss incurred by companies were the likes of Mukta Arts (-4.98 per cent), Cinevistaas (-4.88 per cent), Saregama (-4.88 per cent), Balaji Telefilms (-4.80 per cent), Jain Studios (-4.83 per cent), UTV (-4.11 per cent), Sun TV (-2.75 per cent), ETC Networks (-2.21 per cent), Adlabs Films (-1.53 per cent).

Media major Zee Telefilms had a relatively quiet day at the bourses, closing at Rs 228.20 down a minimal -0.61 per cent from yesterday’s last traded price of Rs 229.60. On the Nifty, meanwhile, Zee ended the day at Rs 227.40, down 1.22 per cent from yesterday’s close of Rs 230.20.

The big question on every market punter’s mind at the moment seems of course to be just how low will low go. When will the “market correction” bottom out is something no one seems to be able to hazard a guess on currently.

May 22, 2006
Star Group Q3 revenue up 14% to $123 mn

NEW DELHI: The Rupert Murdoch-controlled News Corp.’s pan-Asian venture, Star Group, operating income grew 28 per cent year-on-year to reach almost $30 million, propelled by ad revenue growth largely emanating from India.

While the Hong Kong-based Star Group turnover grew 14 per cent to reach $123 million for the third quarter ended march 2006, parent News Corp. continued to maintain strong operating momentum with its Q3 FY 06 (March 2006 quarter) result with an increase in operating income to $889 million.

According to the Hong Kong-based media research firm Media Partners Asia (MPA), Star Group’s Indian operations grew on the back of weekend programming initiatives at Star Plus and Star One.

However, MPA states that Star’s revenue growth of 14 per cent in Q3 was below previous quarters (20 per cent – 30 per cent in Q1 and Q2) due to an earlier-than-expected-closure on Star Plus of the second season of the Amitabh Bachchan-hosted Kaun Banega Crorepati (KBC), which is an Indianised version of Who Wants To Be A Millionaire.

KBC had to be taken off the air earlier this year after its star host, Bachchan, fell ill midway into the second season and expressed his inability to continue shooting for the television programme, which was showing signs of capturing the fancy of the nation once again.

For nine-month FY 06, Star Group’s turnover tracked up 22 per cent to approximately $400 million, while operating income climbed 16 per cent $86 million with margins down a notch to 22 per cent (versus 23 per cent in 9M FY 05) due to higher investments in programming, marketing and distribution largely in India.

MPA forecasts indicate that Star could see $141 million in operating income by the end of the present financial year in June 2006 with total revenue at $551 mil. (+24 per cent Y/Y).

Going forward, Star will be heavily focused on its July 2006 launch of DTH services in India via its 20 per cent-owned $500 million joint venture with the Tatas (80 per cent shareholder) along with a ramp up of programming at its 20 per cent-owned Indonesian terrestrial broadcaster ANTV.

Tata Sky aims to add up to one million pay-TV subs per annum as it looks to drive digital-led addressability in the Indian market.

As of March 2006, India’s first DTH pay-TV provider Dish TV (owned by Zee Telefilms boss Subhash Chandra) had close to a million subscribers.

May 19, 2006
Zee TV tightens hold on 2nd spot in prime time

MUMBAI: The last time indiantelevision.com analysed the Hindi General Entertainment Channel rankings (CS4+HSM) in February 2006, Zee TV had gone ahead of its nearest competitor Sony in the all day time band. Also, there was a neck and neck fight going on in the coveted prime time band.

The big question was, would Zee TV be able to post a convincing win over Sony in the prime time, while sustaining its all day performance?
Now, after a couple of months it is time to update the score card. Analysing the Tam data (2 April 2006 to 30 April 2006, CS4+ HSM), we have Zee TV proving that its good show in the past months was not a mere flash in the pan. The channel has not only retained the second rank in the all day part with a clear margin, but also reached the number two position (behind Star Plus) in the prime time band.

Zee’s ad sales wing also rose to the occasion. Based on the good performance, Zee Telefilms increased the ad rates for certain Zee TV shows last week. The programmes in question are on the expected lines: Saath Phere (an increase from Rs 75,000 to Rs 80,000 for 10 seconds), Kasamh Se (from Rs 40,000 to Rs 70,000) and Sa Re Ga Ma Pa – Ek Main aur Ek Tu (Rs 40,000 to Rs 70,000.).
“The logic behind the rate hike is fine performance. We wanted our inventories to meet the demand-supply situation. And hence, we have increased the ad rates of some shows, which passed the bench mark. For the upcoming shows Johnny Ala Re and Shabash India, we have zeroed in on decent rates, which we think are right,” says Zee Network EVP Sales Joy Chakraborthy.

The data says it all: In the prime time band, the average channel share Zee TV has posted within the above five week period is 14.6 per cent, against Sony’s 14.2 per cent. In the all day time band, Zee holds a significant 18.6 per cent of channel share, while Sony’s share now stands at a meagre 12.4 per cent.

Apart from the channel driver Saath Phere, the serials which powered the good show include Kasamh Se and debutant Jabb Love Hua. Saath Phere and Kasamh Se are running in the range of 4 TVRs (see the programme rating chart below), according to Tam. Zee TV programming head Ashwini Yardi considers Jabb Love Hua as the latest find. “The soap opened with 0.6 TVRs in the opening week and the following week it recorded a far better 1.7 TVR. The storyline is going to gather much steam in the coming weeks and we are confident of the soap giving a solid performance,” she says.

Zee’s best prime time band performance in this five week duration came from the week beginning 23 April. The week was a significant one for Hindi GEC since three prime time shows launching (Jabb Love Hua on Zee and Aisa Des Hai Mera and Thodi Khushi Thode Gham in Sony) simultaneously on 24 April. Now, as per Tam, the day favoured Zee TV, as the channel improved its share by 20 per cent in the week – from 15.4 per cent to 17.6 per cent. Meanwhile, Sony’s channel share dropped from 17.4 per cent to 12.4 per cent.

Yardi attributes the jump to a good opening by the soap Jabb Love Hua. “Zee TV’s ratings for that particular slot went up by about 400 per cent on 24 April. That played a key role in the surge,” she says.

According to Yardi, Zee TV is not about to rest on its laurels. The channel is planning various strategies to further improve the performance of its prime time soaps. “For example, Saath Phere is going to be in the spotlight in the coming week. The story will take a major turn as we reveal a well-kept secret in the serial. We also have a new show coming in to fill the Kam Ya Zyaada slot,” Yardi offers. The channel dropped the Manoj Bajpai-anchored gameshow two weeks ago. Re-runs of the celebrity show Jeena Isika Naam Hai has replaced Kam Ya Zyaada temporarily.
Channel
Key properties
April-May average ratings combined
Star Plus Kyunki…, Kahaani…, Kasauti… 12.64 TVR
Star One Laughter Challenge, Mano Ya Na.., Kya Hoga.. 2.61 TVR
Zee TV Saath Phere, Kasamh Se 4.44 TVR
Sony Idol final & Idol Muqabla, Fear Factor, CID 3.36 TVR
Sahara One Cricket, Woh Rehne Wali.., Hanuman (film) 2.76 TVR
Sab TV Caravan (film), Idol Takka Tak, Wah Wah, Lo Kal.. 0.52 TVR
(Source: TAM Peoplemeter System TG: CS 4 years+ Hindi Speaking Markets Period: 2/4/06 to 6/5/06)

Hasn’t Zee TV’s big ticket reality show Business Baazigar’s non-performance dampened the mood a bit? “Business Baazigar is totally different from all the other reality shows that happened on Indian television so far. The format is new and people are taking their time to get into the loop. The show is delivering a TVR of 0.6 on an average and we expect this go up in the coming weeks,” Yardi reasons.

May 16, 2006
Zee Kannada to launch on 11 May

MUMBAI: Zee Telefilms’ proposed Kannada general entertainment channel Zee Kannada is now ready for launch. According to market sources, the channel will hit the airwaves on 11 May.

Zee Kannada will target the general Kannada-speaking universe and the programming space will cover soaps, movies, gameshows, talk shows and current affairs programmes.

The channel will be headed by Venkat Giridhar in the capacity of business head. He will report to Zee Telefilms South initiatives head Ajaykumar.

According to sources, soaps and films will constitute 25 per cent of the channel programming. Gameshows and talk shows will make another 25 per cent. There will be a stress on current affairs programmes and film-based shows.

Zee Kannada has acquired a combo package of new and old films to create its movie library. Having strong film content would matter a lot for the channel’s strategy in the movie-crazy market. “Since the TG is the same, Zee Kannada will have a head-on collision with Sun Network’s Udaya TV and its sister channels. In this context, having strong film content will be crucial,” says a market source.

“We have conceptualised our fiction programmes with fresh themes and innovative concepts. The effort will be to give a new direction to this segment and thus get a foothold in the market,” says a Zee source.

Zee Kannada’s positioning is in direct contrast to that of its South sibling Zee Telugu. The one-year old Telugu channel targets the young upwardly mobile viewer segment.

“You can experiment a lot in Zee Telugu as the market is huge. You have various options to choose your TG in Telugu. Kannada is however a comparatively smaller market and we have to stick to the basic strategy,” adds the source.

The Rs 1.4 billion Kannada television ad market is dominated by Sun Network’s Udaya TV. Another key player in the market is ETV Kannada.

May 5, 2006
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.

April 27, 2006
Zee rejig: 2 companies to merge with ASC Enterprise

NEW DELHI: Two companies related to the consumer service business of the Subhash Chandra-promoted Essel Group’s DTH platform are poised to be merged with ASC Enterprise Ltd, which holds a DTH licence.

The companies to be merged with ASC Enterprise are Cornersoft Entertainment Co Pvt Ltd and New Era Entertainment Pvt Ltd.

This is part of the restructuring announced by Zee Telefilms late March to de-merge its various businesses into separate companies to unlock shareholders’ value and conform to varying regulatory needs.

The direct consumer business is marked by division of activities between the DTH license holder ASC Enterprises Limited and subsidiaries of Siti Cable, the cable arm of Zee Telefilms. This led to lack of clarity in structure, inefficiencies in tax and diffused strategic focus, the Zee management felt.

The merger proposal, which got the in-principle okay of the Zee board, is likely to be formalised at a board meet of the company on 27 April. ASC Enterprise’s DTH service is marketed under the brand name Dish TV.

Started in 2004, Cornersoft Entertainment created the 7575 interactive platform for Zee family of channels and other Essel group companies. The interaction happens on the Essel short code 7575, which during the final countdown to Sa Re Ga Ma 2005 Challenge show on Zee TV received almost 5 million SMSs per day. Such massive interaction took it ahead of the popular Times group-owned 8888 platform.

The 7575 platform has tied up with all the GSM and CDMA phone operators with a powerful national penetration of 98.5 per cent.

The mission of Cornersoft Entertainment is to integrate, connect and extend high quality and engaging content, applications and services to customers. It’s positioning will help Dish TV market a range of value added services that it plans to offer to its subscribers over a period of time.

The 7575 service is also a pioneer in integrating TV-SMS, a technology solution that provides live interaction capabilities to play and interact while watching a particular show. Over a period of time, other value added services like ring tones download have also been introduced.

On the other hand, New Era Entertainment markets the Dish TV services in the country. Launched in October 2003, Dish TV has close to one million subscribers and is presently said to be adding approximately 3000 subscribers every day as awareness about such a service increases in India.

The Zee Telefilms stock on the Bombay Stock Exchange closed Wednesday at Rs 241.5, down by Rs 2.35, after opening at Rs 243.85. At the National Stock Exchange, the scrip closed at Rs 241.7, down by Rs 2.30 from the last day’s close of Rs 244.

April 27, 2006
Zee Telefilms to be named Zee Entertainment Enterprises; ASC Enterprises becomes Dish TV

MUMBAI: One part of the process set in motion late last month by the Subhash Chandra promoted Zee Telefilms board to split its broadcasting business into three entities — news operations, broadcast & content creation, and Siti Cable — has been completed with the nomenclature of the new entities finalised.

Zee Telefilms will henceforth be named as Zee Entertainment Enterprises Ltd (Zeel). Included under its ambit are flagship Zee TV, Zee Cinema, Zee Cafe, Zee Studio, Zee Trendz, Zee Sports and Zee Smile.

On the other hand, ASC Enterprises Ltd, under which comes the group’s direct-to-home (DTH) businesses, will now be renamed as Dish TV Ltd. ASC Enterprise’s DTH service is marketed under the brand name Dish TV.

Last month, the company’s board had approved of splitting of its broadcasting business into three entities — news operations, broadcast and content creation, and Siti Cable.

There is no change of name for the news operations company which remains Zee News Ltd. Under Zee News comes not just the news channels but the regional channels as well.

The reason for including the regional channels into Zee News Ltd is because of the heavy news component that forms an intrinsic part of all these channels. It was in order to comply with the news uplinking guidelines that effective October 2005, newsgathering activities of ZTL were transferred to Zee News Limited.

The news channels include Zee News, Zee Biz and the recently launched Bangla news channel Chobbees Ghanta. The regional channels are Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, with the newest addition being Zee Telugu. Expected to launch next month is the sixth regional channel in the stable Zee Kannada.

As regards the restructuring on the cable side, it has already been announced that the cable business of Siti Cable, a 100 per cent subsidiary of ZTL (now Zeel), and the cable related business of ZTL would be de-merged into Wire and Wireless (India) Limited (WWIL), a new company incorporated for the purpose.

April 27, 2006
IBF board to discuss CAS on 5 April

NEW DELHI: Even as Siti Cable today made a presentation on conditional access system to stakeholders during a government-sponsored meeting, the broadcasters said the issue of rollout would be discussed at a board meeting before they finalise their stand.

The Siti Cable presentation basically dwelt on various aspects of CAS, but hinged on the fact that between 180-200 days would be needed as preparation time for final rollout of addressability in Indian cable homes in the metros of Delhi, Mumbai and Kolkata.

Siti Cable is also in favour of standardization of all contractual agreements that are entered between a broadcaster and MSO; an MSO and a cable operator and a local operator and a consumer.

Though the six-hour long meeting took up various viewpoints and modalities that could be followed before the government notifies a date for rollout of CAS, representatives from most major pay broadcasters did not attend today’s meeting.

Those who could be said to be representing the broadcasting community included a senior official from the Indian Broadcasting Foundation (IBF), an apex body of all broadcasters active in India, and Zee Telefilms’ Jawahar Goel.

Broadcasters haven’t yet given a formal submission to the government on CAS, which is expected to come through on 7 April when the government will hold another round of meeting with industry stakeholders.

Meanwhile, Indiantelevision.com learns that the board of IBF will discuss addressability in a meeting on Wednesday (5 April).

Some of the issues relating to CAS implementation, which have been informally raised by broadcasters with the government, include piracy, quality of service and parameters to decide standardized agreements amongst industry stakeholders.

It is also learnt that the broadcasters are averse to supplying maximum retail price for a TV channel for the end consumer.

The pay broadcasters, yet to articulate their final stand on this issue, feel a mechanism could be evolved whereby wholesale price of individual channels and bouquets could be supplied to MSOs who then could decide what a channel should cost to the consumer after including their margins for providing a service.

After today’s meeting, an independent cable operator of Delhi, Dr. AK Rastogi, said, “We have been discussing CAS for few days now. But to me, it seems, final implementation, as directed by the Delhi High Court, will take more time than what had been envisaged.”

April 13, 2006
Zee to file Rs 500 million defamation suit against BCCI VP Lallit Modi

MUMBAI: There is a Zee-BCCI face off in the offing as the former has decided to sue BCCI VP Lalit Modi for using “abusive and unparliamentary language” against its sports channel Zee Sports business head Himanshu Modi.

A PTI report has quoted Zee Telefilms EVP Ashish Kaul as saying that, it would file a defamation suit against Modi for Rs. 500 million for using filthy and abusive langaugage against our Zee Sports CEO Modi.

Kaul said, “We are going to send legal notice immediately for use of such language against a top official of Zee Sports.”

Reportedly, the alleged incident happened on 6 April when Himanshu Modi protested against a violation by a competitor in the bidding for BCCI’s global media rights for matches at neutral venues in the next five years. Zee won the rights after emerging as the highest bidder quoting a figure of $219.15 million.

Responding to the charges, Lalit Modi said he only protested against leakage of information to media and did not use any abusive language against Zee official. “Zee officials were protesting against Sahara’s bid for overseas telecast rights, but I told them not to leak it to media,” Modi has been quoted in the report.

April 8, 2006
Sahara One plans to raise up to $50 million

MUMBAI: Sahara One Media & Entertainment Ltd has plans to raise up to $50 million in one or more tranches. The board, which met on 5 April, has given the green signal to offer and allot in foreign markets equity shares or other instruments like foreign currency convertible bonds (FCCBs).

Sahara had bid around $176.25 million for the telecast rights to 25 one-day matches played by India at neutral venues for the next five years ($ 7.05 million per match). This means Sahara would have had to cough out $14.1 million for the two Indo-Pak Friendship Series matches to be held in Abu Dhabi later this month. But since Zee Telefilms bagged the rights, Sahara’s fund requirement would be less than $50 million in the immediate run.

“It is just an enabling resolution for us to raise up to $50 million. If cricket rights would have come to us, our requirement to raise money would have been more immediate. We may raise the money in tranches. We haven’t decided when and how much money we are going to raise. All this will depend on how the business rolls out for us,” said an official in the company.

Sahara has informed the BSE that its board has approved the issue, offer and allot in course of International offering, in one or more trenches and in foreign markets equity shares / preference shares / convertible debentures / convertible notes / FCCBs / secured premium notes (SPNs) and / or any securities convertible into equity shares at the option of the company and / or holder of the securities and / or securities linked to equity shares through American Depositary Receipts (ADRs) and / or Global Depositary Receipts (GDRs) up to a maximum amount of $ 50 million.”

The board has also approved the calling of Extra Ordinary General Meeting of the company on 8 May to get the consent of shareholders.

April 7, 2006