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Tag: Zee Telefilms.

  • Zee wins ‘neutral venue’ media rights for $ 219.15 million

    Zee wins ‘neutral venue’ media rights for $ 219.15 million

    NEW DELHI: The numbers are going beyond believable as far as India cricket is concerned. Subhash Chandra’s Zee Telefilms has secured the rights for the latest money-mopping plan the Board of Control for Cricket in India (BCCI) has pulled out of its cupboard — for matches played by India at neutral venues (non-ICC member countries) over the next five years.

    And the winning bid: a whopping $219.15 million (average of $ 8.77 million per match) for 25 matches spread over the next five years.
    The 25 matches will involve mainly Pakistan as the opposition, but will also include top cricket countries like Australia, England and West Indies. With this, the minimum bid guarantee of the BCCI has crossed the $1 billion mark all told.

    Zee Telefilms also becomes the rights holder for radio and broadband in non ICC member countries where matches may be played. It would also negotiate with pubcaster Doordarshan independently for a terrestrial feed.

    “This cricket property puts us on a strong wicket and would help us in our growth,” Zee Sports business head Himanshu Mody told Indiantelevision.com, adding that “the loss of India cricket rights have been more than made up”.

    The other bidders in the fray for the overseas rights were ESPN Star Sports (disqualified for bidding below the floor price), Nimbus and Sahara One Media & Entertainment.

    The media rights for this latest piece of the India cricket pie will be inaugurated with the two-match Indo-Pakistan limited over series that will be held in Abu Dhabi later this month. The presenting sponsor is Indian real estate major DLF and the ground rights for this series was secured by PDM International for $ 3.61 million.

    Pointing out that Rs 900 million are expected to be generated from these two matches, BCCI vice-president Lalit Modi said 50 per cent of the proceeds will go to Pakistan for earthquake relief fund, while the rest will be donated to the Indian Prime Minister’s relief Fund.

    Pakistan Cricket Board’s director cricket operations Salim Altaf, who was present during the opening of the financial bids as an independent observer, also exchanged documents with BCCI secretary Niranjan Shah, signifying an understanding between the two countries for playing matches under a bi-lateral agreement.

    The 25 matches are to be played in places like Abu Dhabi, Dubai, Sharjah, Holland, Lords, Oval and Birmingham in England, Toronto, New York, Tristate Area, Houston, Chicago, Palo Alto, Singapore, Hong Kong and Kuala Lumpur.

    According to BCCI’s Modi, negotiations are on with the respective countries for venues. All the matches will also be recognized by the International Cricket Council and form part of India’s playing calendar.

    HOW THE DIFFERENT BIDS STACKED UP

    While Zee is likely to end up paying a total of at least $ 219.15 million over a period of five years on an average price of $ 8.77 million per match, the break-up of payment year-wise varies.

    According to documents circulated by the BCCI today at a press conference here, Zee bid $ 5.04 million for the first year, $ 6.03 million for the second year, $ 6.66 million for the third year, $ 8.10 million for the fourth year and $ 18 million for the last year.

    Similarly, the other bidders too had bid separately for every year. ESS had bid $ 2.86 million for each of the five years.

    Nimbus bid $ 5 million for the first year, $ 6 million for the second year, $ 7 million for the third year, $ 8 million for the fourth year and $ 14 million for the fifth year with an average of $ 8 million per match.

    Sahara’s bids were $ 5.32 million, $ 5.41 million, $ 6.40 million, $ 7.21 million and $ 10.90 million for each of the five years where on an average per match was costing $ 7.048 million.

    On being asked how does it feel to be on the losing side, Nimbus’ chairman Harish Thawani shot back, “Seeing the winner’s bids, I feel we got the rights to India cricket cheap. I wish Zee all the best.”

    Nimbus had bagged the four-year rights of Indian cricket for a whopping $ 612 million, beating the likes of Zee Telefilms ($ 513 million and ESS.

    DRAMA BEFORE THE ANNOUNCEMENT

    Can anything related to cricket and BCCI be bereft of drama? Probably not.

    Before the media was apprised of the transparent way in which the BCCI conducts its affairs, especially those relating to bidding, journalists were kept waiting at a five-star hotel here as a closed-door meeting of cricket officials and representatives of bidding companies took place.

    Reportedly, there were two adjournments when frantic calls were made by some of those present in the meeting to their bosses.

    It seems there was some confusion regarding the way prices of every one year of the five-year contract period were to be quoted and calculated.

    When that got sorted out, discussions took place on the formal protests lodged by Zee Telefilms and Nimbus relating to the submission of financial bids by Sahara yesterday in Mumbai.

    While Modi reiterated that there were “no irregularities” in the Sahara bid, Zee Sports’ Mody smiled away questions on yesterday’s protests. “We don¡’t have any issue now,” he said, while sharing the dais with BCCI officials.

    While making a grand exit from the press conference, BCCI’s Modi said, ‘These rights will ensure coverage of matches played by India in non-ICC member countries as well. Professionalizing this aspect of Indian cricket management will make the sport, especially the Indian game, accessible to Indian communities across the globe, including the non ICC member countries.”

  • Cricket: BCCI debunks bidders’ objections

    Cricket: BCCI debunks bidders’ objections

    NEW DELHI/MUMBAI: Cricket and controversy in India are synonymous now.

    The latest round of allegation and counter-elucidations relates to overseas cricket telecast rights for Indo-Pakistan cricket matches to be played in neutral venues with one set of bidders alleging “irregularities” in the Board of Control for Cricket in India (BCCI).
    The charge that the Indian cricket board is allegedly biased towards Sahara One Media & Entertainment, which is presently telecasting the ongoing India-England home cricket series on Sahara One channel, however, has been dismissed by the BCCI as “making a mountain of a molehill.”

    If that’s not enough, media reports from Pakistan hint that while the BCCI is going ahead full steam with the proposed cricket matches — 25 in number over a period of few years — actually no formal agreement exist between it and the Pakistan Cricket Board (PCB), which is as much owners of the cricket matches as the Indian cricket board.

    On the last day of submission of financial bids for Indo-Pak cricket on neutral venues, some companies like Zee Telefilms, ESPN Star Sports and Nimbus today have alleged that tender documents criteria “seem to have been totally ignored by Sahara in the bid submission process.”

    Not only one of the bidders has written a letter to the BCCI president and agriculture minister Sharad Pawar, after marking it to other officials like the marketing head chief Lalit Modi, but a sequence of happenings as it happened have been detailed.

    BCCI has fixed a reserve price of $ 5 million dollars a match and the total revenue generated could be in excess of $120 million.

    The basic thrust of the allegations listed in the letter, a copy of which is available with Indiantelevision.com, is not only the Sahara group submitted its bids after the deadline of 11 a.m. today, but also flouted a condition of bringing the bids in open envelopes.

    “…the Sahara financial bid was in unsealed condition and was actually taken out of the envelope for approximately 10 to 15 seconds,” the letter states, adding that all the other bidders present objected to it and lodged their formal protest on Sahara’s late arrival too.

    While Sahara One Media and Entertainment refused to make any comments when contacted by Indiantelevision.com, BCCI vice-president Modi dismissed the allegations by saying the other bidders were simply splitting hairs over a small issue.

    “There has been no irregularity,” Modi insisted, “If people feel that on a small technical issue, we would disqualify a newcomer (Sahara has never bagged telecast rights till the recent India-England series), then they have to think again.”

    According to Modi, the other companies were attempting to form a “cartel” in an effort to hammer down the prices.

    “It almost seems that some companies are ganging up against a newcomer’s entry. It also seems a cartel is being attempted so that the price (of the telecast rights) could be lowered,” Modi told Indiantelevision.com.

    Asked whether the BCCI has a formal deal with the PCB before going ahead with sale of telecast rights of Indo-Pak cricket, Modi criticized the Pakistani media for raising unimportant issues, which are of “no consequence.”

    “The very fact that we are going ahead with the bidding process shows that PCB and the BCCI have an understanding. Has the PCB said anything formally?” the businessman-turned-sports administrator countered

    Meanwhile, the protest letter concludes by stating, “We believe that the new BCCI administration has conducted the earlier tender processes with complete transparency and fairness. There have been instances in the past, where companies have been disqualified on technical grounds.

    “Keeping these facts in mind, we trust that in all fairness, the Sahara financial bid should not be considered. We are hopeful that the BCCI will take a fair decision on this occasion as well.”

    Whether the BCCI takes note of the protests lodged by the likes of Zee, ESS and Nimbus can only be gauged when the financial bids are opened on Thursday (6 April) and the successful candidate announced

  • Sahara in Rs 1.5 billion expansion plan; to bid for Abu Dhabi series

    Sahara in Rs 1.5 billion expansion plan; to bid for Abu Dhabi series

    MUMBAI: Sahara One Media and Entertainment Ltd is planning to raise Rs 1.5 billion to meet its expansion plans. The company is also likely to bid for the cricket telecast rights for the two-match India-Pakistan Friendship Series to be held in Abu Dhabi.

    The board of directors will meet tomorrow (5 April) to decide on these issues. “Sahara One is looking at getting an enabling clause to raise Rs 1.5 billion. Among other things on the agenda is the approval to bid for the cricket rights,” said a source close to the company.

    Sahara’s media and entertainment business has been valued by Ernst & Young at Rs 7 billion, sources said. The company had appointed the consulting firm to conduct the valuation exercise.

    Sahara One Media and Entertainment is in talks to rope in investors. Recently, Bennett, Coleman & Company Ltd (publishers of Times of India and the Group is 74 per cent stakeholder in Times Now news channel) picked up six per cent stake for Rs 378 million in the company (Indiantelevision.com was the first to report that Bennett, Coleman would buy stake in Sahara One).

    NRI businessman C Sivasankaran is in talks to put in around Rs 1.2 billion for a minority stake into Sahara One. “He is sitting on the fence,” said the source. Having sold Aircel for $1.08 billion to Malaysia’s Maxis Communications, he is flush with funds. His first media investment was in ETC Networks where he held 40 per cent stake. He went on diluting equity and exited from the company which was later acquired by Zee Telefilms.

    Sahara is launching a music channel, adding up to a bouquet of general entertainment and movie channels. Sahara Group also owns a string of news channels.

    Sahara has already experimented with cricket telecast of the India-England series on its Hindi general entertainment channel. Using the event, Sahara One has encrypted and expanded the reach of the channel.

    For the Indo-Pak Friendship Series, the contract for ground rights has been bagged by PDM International, a Percept Holdings company, from the Board of Control for Cricket in India (BCCI) with a bid of $ 3.61 million. Incidentally, Percept has a management contract to handle Sahara’s entertainment business.

  • Zee to buy out broadband services provider Pacenet

    Zee to buy out broadband services provider Pacenet

    MUMBAI: Zee Telefilms Ltd (ZTL) is buying out broadband services provider Broadband Pacenet, which is promoted by Jagjit Singh Kohli, Yogesh Shah and Yogesh Radhakrishnan.

    Kohli, who is the CEO of Siti cable, is an immediate beneficiary of the proposed demerger of India’s largest multi systems operator (in terms of size) and the cable related business of Zee Telefilms Ltd. He is being given a 2 per cent stake in the new company, Wire and Wireless (India) Ltd, which he will be heading.

    A detailed business plan is being prepared for Wire and Wireless which will venture into triple play services as well, Zee Telefilms chairman Subhash Chandra said, while addressing analysts here today.

    Pacenet will be merged with Wire and Wireless and Kohli’s partners will also be given shares in the new entity. “We have agreed to buy out Pacenet. The valuation is under progress. The existing shareholders of Pacenet will be given shares in Wire and Wireless,” Chandra said.

    Broadband Pacenet offers broadband services using the cable network infrastructure of its franchisees and claims to be servicing over 25,000 home subscribers apart from many corporates.

  • Zee English and Movies launched

    Zee English and Movies launched

    Two English entertainment channels were launched on 15 March by Zee Telefilms chairman Subhash Chandra and Chief Executive R.K. Singh in Mumbai. Zee Movies and Zee English will be offering fierce competition to Star World, Star Movies and HBO. Or at least so hopes the Zee Telefilms management.

    The two channels are aiming at the niche but relatively large English speaking and understanding audiences in India and also lovers of B-grade movies and some up-to-date series from the US market. The launch coincides with the launch of the preview broadcast of global movie champ HBO over India.

    Zee English and Zee Movies are free to air currently but will be encrypted as part of the Zee digital bouquet. The company is bringing in a small batch of Philips IRDs to seed the market until the transition to a digital bouquet.

    Both the channels are airing a mix of eighties, nineties, and even the most recent season’s programming from the US. On offer are series such as ER, Friends, The David Letterman show, Here’s Lucy, Central Park West, Three’s Company, Charlie Chaplin, Twilight Zone etc on Zee English.

    In a bid to raise the hackles of Zee TV’s former partner Star TV, the programming team has decided to air the consignment of Friends episodes it has the rights to just half an hour before it is aired on Star World.

    The software for Zee Movies has been acquired from MGM, Pearson, Carlton, Fremantle, Diskovery, and Passport International. Some of the titles on offer include: Quest, Kazaam, Evil Dead, Leon.

    Chandra points out that there will be a dedicated effort from the Zee Telefilms programming team to produce English language software which will find a market internationally. “Instead of importing software from foreign countries, we will develop our own content which will find buyers not only in India but also in the global village,” he says.

    Singh believes that the two English channels will break even in the next two to three years like any other Hindi entertainment channel.

    Will he have to eat his words in two years time?

    “Unlikely,” says Chandra. “Ultimately it will be the consumer who will decide. And we are confident we will help him decide in our favour.”

  • Zee Telefilms creates 3 new business entities; to list them

    Zee Telefilms creates 3 new business entities; to list them

    MUMBAI / NEW DELHI: The Subhash Chandra promoted Zee Telefilms board today approved splitting of its broadcasting business into three entities — news operations, broadcast and content creation, and Siti Cable, which will also include the initiatives on the CAS front.

    After the restructuring, which is expected to be completed within six to eight months, the new entities involved in cable business, and news operations, would be listed on the stock exchange.
    It also announced an ‘in principle’ approval of a proposal to demerge the consumer services business for Dish TV. The board of directors has approved the restructuring proposal related to the de-merger of news and cable business while directing the management to evaluate the direct consumer services business (Dish TV related) and the assess the effect of de-merging it.

    According to Zee Telefilms chairman Subhash Chandra, the company had a complex structure, which needed to be simplified as required by the regulatory environment and market needs.

    * ZTL holds 33 per cent in Zee News Limited, while promoters of Zee hold the balance. Zee News Ltd delivers news uplinked fto the satellite for Zee News, Zee Business and News content of regional channels.
    He added, “Due to regulatory restrictions, the business of Dish TV was structured in a very fractured manner and hence was difficult for ZTL shareholders to understand.

    “At the same time, the structure was also tax inefficient. The management of the businesses under the same board was not focused and thus unable to capture the growth opportunities in the market as different skill sets are required for distribution to trade, which in this case is cable business.”

    He continues that the regulation in the news and news related broadcast content is different from regulation in entertainment and other content.

    Due to technological advancements and changes, the media businesses have to be prepared for a forthcoming digital age, the company said.

    “We feel confident that these measures of restructuring these businesses subject to necessary approval would result in streamlining operations and better exploitation of opportunities in each area to build long term shareholder value. It would also clear the ground for acquisitions and strategic or financial partners in the demerged businesses, apart from unlocking shareholders value,” Chandra says.

    Queried as to whether he saw the demerged cable business (Siti Cable) and the direct consumer services business (Dish TV) as being the most likely to invite international interest for strategic and financial partnerships, Chandra replied in the affirmative.
    Restructuring of consumer business for Dish TV
    The direct consumer business is marked by division of activities between the DTH license holder ASC Enterprises Limited (ASCEL) and the subsidiaries of Siti Cable.

    * Percentage holding to be decided by the board after valuation by independent valuers.
    As per the proposal, the direct consumer related business of ZTL would be de-merged into ASCEL, with the shareholders of ZTL receiving shares in ASCEL in proportion.

    This has been done due to lack of clarity in structure, inefficiencies in tax and diffuse strategic focus.

    The proposal has met with in principle approval of the Zee board. The board has authorised management to evaluate the proposal and its effect and present to board for final approval.

    The scheme of arrangement would require approval of the stock exchange, shareholders and creditors of Zee and from Bombay High Court.

    Restructuring of news business; regional channels included

    # ZTL shareholders would get 137 shares of Zee News Ltd for 100 shares in ZTL. ZTL foreign shareholders will get upto a maximum of 26 per cent. Any additional shares accruing would be converted into Preference Shares. Currently the FII holding is 31 per cent, hence everyone will get equity shares. The equity shares held by foreign promoters would be shifted to India as domestic holdings.
    In compliance with the news uplinking guidelines with effect from October 2005, newsgathering activities of ZTL were transferred to Zee News Limited, while downlinking and commercial exploitation of all news-bearing channels was retained under ZTL.

    “Despite a compliant corporate structure for news bearing channels (particularly regional channels), we have felt it important to bridge the divide and bring all the operational activities together, to create strategic focus, remove tax efficiencies and unlock shareholders value,” Chandra said.

    Under the scheme of arrangement, the news-related business (Zee News, Zee Business, Zee Bangla, Zee Punjabi, Zee Marathi, Zee Telegu and shortly to be launched Zee Kannada will be subsumed into Zee News Limited (ZNL).

    The company will in due course be suitably changing the name of Zee News Ltd.

    As the result of preparation of news business the shareholders of Zee Telefilms will get proportionate shareholding in ZNL. As per the formula that has been worked out 137 ZNL shares will fetch 100 shares in ZTL.

    In case the allotment works out to more than 26 per cent (which is the permissible limit of foreign investment in news ventures in India), the FIIs would be allotted preferentail shares of equivalent value on a proportionate basis.

    Zee News Limited would be listed on all stock exchanges where ZTL is listed.

    Restructuring of cable business

    Siti Cable has been hived off into a separate entity, Chandra pointed out, as the cable assets were under-utiliseted, despite large and well-positioned investments in the cable business.

    To properly address the emerging business opportunities in digitisation of cable and convergence, there also are large funding requirements. And the regulatory requirement applicable to cable distribution is very different to broadcasting.

    Combined with the fact that the competitive environment of distribution business is also different, the Zee board felt that an invigorated corporate and governance set up was essential to aggressively address the emerging opportunities.

    * Shares held by foreign promoters will be shifted in India as domestic holding to bring down the overall foreign holding to about 35 per cent. Cable business is allowed foreign holding upto 49 per cent.

    As per the scheme of arrangement, the cable business of Siti Cable, a 100 per cent subsidiary of ZTL, 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.

    The shareholders of ZTL would receive shares in WWIL in proportion, as consideration.

    WWIL would in turn issue preference shares to the shareholders of ZTL.

    Meanwhile, the Zee scrip moved in a narrow band today. While opening at the BSE on 238.90, the scrip touched a high of 243.35 and a low of 236.10 before closing the day at 239.55. The stock is expected to react tomorrow as the restructuring of Zee’s businesses was announced in the evening, after the bourses had closed.

    MY Khan joins Zee board

    Dr MY Khan, chairman of Banking and Advisory Council, YES Bank Ltd, has joined Zee as a director on the board of the company. Dr Khan has previously served as chairman of J & K Bank. He is also a director on the Board of Bharat Hotels, as well as an advisor for Berenson & Company, New York.

  • VC fund to support ‘Business Baazigar’ winner

    VC fund to support ‘Business Baazigar’ winner

    MUMBAI: A venture capital (VC) fund with a corpus of Rs 200 million will support the compelling business ideas from contestants of a reality show on Hindi general entertainment channel Zee TV.

    Business Baazigar, which will decide the fate of budding entrepreneurs through 24 episodes, will finance the business project of the winner of the show through the VC fund. The extent of funding will be decided by the jury comprising Zee Telefilms chairman Subhash Chandra, Passionfunds CEO Mahesh Murthy and Prof. Anil Gupta of Indian Institute of Management.

    “Subhash Chandra has tied up a VC fund, the size of which is Rs 200 million. It is floated by a consortium, but we can’t disclose the promoters. The fund will support the winner of Business Baazigar, the amount of which will be decided by the jury,” said 25 FPS managing director Alankar Jain, the producer of the show.

    Will the winner have the power to negotiate with the VCs on the amount of equity it wants to dilute and at what value? “Yes. This will also be shown on the final episode of Business Baazigar,” said Jain.

    Can the contestants negotiate with other VCS who will have access to the business ideas as the episodes progress? “There is a lock-in period during which period they can’t start approach other VCS,” Jain said.

    The VC fund may also extend seed funding to other contestants apart from the winner. “Based on the viability of the project, the fund may decided to finance some innovative ideas and support it at the seed level,” said Jain.

    Business Baazigar will have 50 finalists which will be further scaled down to 20 contestants. They will be put through grueling tasks that will test their business acumen and team spirit.

    Audiences will be allowed to SMS their preferences in the final episode so that they can predict the winner. “But there is no voting system and the winner will be decided by the jury,” said Jain.

    Business Baazigar debuts on 31 March, airing one-hour episodes on Fridays and Saturdays at 8 pm.

  • Essel, Intel partner on digital content

    Essel, Intel partner on digital content

    NEW DELHI: The Subhash Chandra-promoted Essel Group has launched DMCL (Digital Media Convergence Ltd) as a company that will facilitate the availability of digital content in India.

    Infotech major Intel will partner the Essel Group in this digital venture, according to senior Intel company executives at the ongoing FICCI Frames event in Mumbai.

    DMCL, to be headed by Zee Telefilms president Abhijeet Saxena, will concentrate on acquiring, digitising and making available on various platforms a wide variety of content.

    This content could be special interest content sourced from outside India for the Indian audience as well as Indian/Bollywood content for use in India and outside.

    DMCL will also engage in creating special interest /niche content that will be of immense value to select audiences in India.

    Announcing the initiative, Saxena said, “We have always been very conscious of offering the best in entertainment to our consumers. Keeping our sights on the future of entertainment in the digital new media scenario, we will be at the forefront of providing both new and existing content across various consumer gadgets.”

    Dwelling on shaking hands with Intel, he added, “While selecting the technology and partner for implementation, performance and expertise in successful implementation was given prime consideration. As Intel is a domain specialist, we are very happy to collaborate with them for this effort. We are confident that we will have mutually beneficial partnership with Intel for this gigantic strategic initiative.”

    Intel Corp launched its Intel Viiv technology platform for home entertainment devices at the CES show California in January 2006.

    The Intel Viiv technology is designed to make it easier for people to download, view, manage and share digital entertainment on a variety of viewing screens and networked devices such as portable media players, digital TVs and routers.

    The company is working to bring the Intel Viiv platform to India in the near future.

    DMCL and Intel will work towards offering digital content over the Intel Viiv platform in India. DMCL will offer an agnostic platform, by being an aggregator (including doing re-purposing) for other content owners, starting with Zee Telefilms Ltd.’s content.

    Intel will work with other players in the industry to introduce DMCL as an Intel Viiv content service provider in India. This joint industry supporting effort means that the consumers who procure Intel Viiv will get a ready service available on the platform for them to access information, entertainment and other services.

    Essel Group has diverse national and global business interests, encompassing media programming, broadcast and distribution, specialty packaging, entertainment and trading.

  • Zee to rejig; mulls Siti Cable hive-off

    Zee to rejig; mulls Siti Cable hive-off

    NEW DELHI: The Subhash Chandra-promoted Zee Telefilms, which is planning a restructuring of its businesses, is toying hiving off its distribution activities as a separate company.

    On being specifically asked whether Siti Cable, the distribution arm of the company and the country biggest MSO, would be hived off as a separate company, a senior executive of Zee Telefilms admitted, “There is a possibility.”

    However, the executive was quick to point out that such an initiaive would not be done overnight. “We’ll have to take the shareholders’ nod for any such restructuring,” he added.
    Yesterday, Zee Telefilms Ltd informed the Bombay Stock Exchange (BSE) that its board of directors would meet on 29 March 2006 to consider restructuring the company’s businesses.

    Few days back, Zee Telefilms finalised a deal for distribution of some family channels in Afghanistan where the flagship is now available on cable networks. Applications for landing rights in China too were made, but the chances are slim as China has stringent laws for non-Chinese broadcasting companies.

    According to information available with Indiantelevision.com, Zee Telefilms — India’s largest vertically integrated media company with its flagship Zee TV now inching back to the No. 2 position ahead of Sony — is toying a de-merger of its businesses.

    At the moment, all aspects of the broadcast business like content generation, marketing, distribution and syndication are carried out under the Zee Telefilms umbrella with different divisions.

    The DTH business of Subhash Chandra is carried out by another concern, ASC Enterprise, which has a content supply agreement with Zee Telefilms for country’s first private sector DTH service Dish TV.

    And, on Thursday Zee Telefilms announced at Ficci-Frames in Mumbai that the group’s digital media initiative will be carried out through a separate company called DMCL (Digital Media Convergence Ltd) that will facilitate the availability of digital content in India in association with Intel.

    In the past, Chandra has gone on record saying that the company would explore opportunities of unlocking shareholders’ value by hiving off Siti Cable as a separate company and possibly listing it also.

    Zee Telefilms subscription revenue (mainly garnered through distribution of TV channels; in India, Siti Cable is the vehicle) has been on the upswing with the company clocking Rs 1,751 million for the third quarter ended 31 Dec, 2005, signifying an increase of 7.8 per cent as compared to the corresponding period last fiscal.

    Out of the total subscription revenue, domestic subscription amounted to Rs 716 million for the Q3 2006.

    Meanwhile, the senior executive of Zee Telefilms talking to Indiantelevision.com said that the company in 2006-07 hoped to do better than the annual average advertising industry growth of 9-11 per cent.

    Buoyed by good ad revenue (Q3 revenue: Rs 1,698 million, an increase of 12.3 per cent YoY), Zee Telefilms is set to increase ad rates across all channels by 30-40 per cent from the next financial year starting 1 April 2006.

    In the last one month, shares of Zee Tele have been heading northward rising to over Rs. 250 during the intra-day trading on 23 March from being quoted at Rs 168.15 on 22 February on the BSE.

    On Thursday, the Zee Tele scrip closed at Rs 242.70 after opening the day at Rs. 238.50.

  • Ready for the future or face customer desertion: Chandra

    Ready for the future or face customer desertion: Chandra

    MUMBAI: “It’s the end of TV, the way we know it.” That was Zee group chairman Subhash Chandra introducing his keynote at the plenary session today – Digital Entertainment Living.

    The thrust of Chandra’s presentation could be said to be the common strand running through most of the sessions on Day 2 of Ficci Frames 2006, which is that the future was the consumption of content would be according to individual requirements and on the go as it were – how you want it, when you want it, where you want it.

    Chandra spoke of a five point agenda that his company had laid out as its course into the digital future.

    These included the need for segmentation of content; innovation in pricing; experimentating with new content ideas; seamless delivery across various platforms; and fourthly, essentially extending the preceding points, the absolute need to prepare for the future if loyalty of consumers was to be preserved.

    Said Chandra, “We have to segment our content. Segmentation will become very important. Content needs to be individualized, personalized.” He also pointed to the possibility that it would not just be programming that was customised but advertising as well. Advertising directed at individuals rather than a mass audience will become possible, the Zee head honcho averred.

    Expanding on the point of seamless delivery across platforms, Chandra made a strong case for the need to move towards opens standards rather than focusing on proprietary control.

    Chandra warned that it was essential that broadcasters “prepare for the future otherwise consumers will desert us.”

    Chandra said that the huge effort that was currently on to digitise Zee’s entire content library (1,500 movies, 50,000 hours of TV) in partnership with IBM was part of that effort. Chandra estimated that it would be another year before the process was complete.

    Another key initiative in that direction, announced earlier in the day in partnership with chip maker Intel, is a separate company Digital Media Convergence Ltd (DMCL) to be headed by Zee Telefilms president Abhijit Saxena, Chandra said. DMCL’s brief was to acquire, digitize and make available on various platforms, a wide variety of content, he pointed out.

    Speaking to Indiantelevision.com on the sidelines of another session, Saxena said that DMCL would become fully functional only after Zee’s content offering had been completely digitised. The interim period (one year) would be spent in acquiring content from a variety of vendors across the globe, Saxena said.