ITV

Tag: Zee

  • ALTBalaji looks at sachet pricing model to more than double the ARPU

    ALTBalaji looks at sachet pricing model to more than double the ARPU

    MUMBAI: The ongoing streaming war across the world has seen OTT platforms investing aggressively in original content with high cash burn. But ALTBalaji, the digital venture of Ekta Kapoor-led Balaji Telefilms, is not taking the same path. With conservative rational investment, the company has seen a profit before tax level breakeven in the last quarter and is keeping a hawk-eye at achieving break-even targets before launching the second phase of its strategy possibly after two years using rich analytics data.

    “We are focused on our breakeven targets, which we will achieve and therefore we are right-sizing our business to this. We are not a bottomless hole where you have to keep showing widening losses and keep acquiring consumers. We do not believe in this philosophy at this stage. We first want to have the proof of the pudding, we want to break even and then use our rich analytics data to launch phase two of our strategy possibly two years from now,” Balaji Telefilms management said in an earnings call after the Q2 2020 results.

    Under phase two of planning, ALTBalaji is looking at producing enough hit content to be able to ‘sachetize’ its pricing two years from now. The company thinks if it can sell content at Rs 2 per day, its ARPU can rise up to Rs 730 a year, which currently stands at Rs 300 a year.

    To enter the next step, the company thinks it has to be able to cater to two major target groups – the under-served male viewing audience, which lacks good quality TV shows, and individual female audience of the age group 20 to 40. Hence, it will look at developing a significant library there.

    “Thirdly, we will have the richest data in terms of numbers and analytics and we need to build an efficient recommendation engine two years from now to be able to optimise retention. Right now, because of the massive inflow of new Internet users, retention is not a top priority also. We do not have more than 42 shows. Once we reach 100 shows, taking a recommendation engine, investing in more AI and ML to ensure that retention happens will bring down the cost of consumer acquisition and retention considerably,” the management said.

    Moreover, the company will also evaluate one single regional language to go into as it learning has led to the belief that sporadically launching single shows in languages cannot attract the audience. Hence, the platform will explore a business plan of launching it in one of the south languages.

    “The ZEE deal understanding is that we shift from a multi-partner system to a kind of pay-based single partner system. We are also kind of exiting the telco environment to partner with the broadcast environment. As part of our strategy, in our first two years, we had to use the widespread telco environment because we had a smaller library, which was growing every month but it still was small,”  the management said on the rationale of its recent deal with homegrown OTT giant ZEE5.

    The other reason for telco partnership was the high cost of consumer acquisition and marketing. "Now, we feel we are in phase two of our business where we will go with single-partner models. In two or three years, we will also be able to have enough library and add enough data to be able to acquire consumers efficiently,” it added.

    However, the company is confident about achieving breakeven between 36 – 48 months of launching ALTBalaji while cash breakeven has already been achieved. After seeing a PBT level breakeven in the last quarter, the company hopes it will be improved in the Q3 and Q4 because of the ZEE deal. The management thinks that being a debt-free Rs 250 crore plus  cash company, it is positioned much better than many debt-ridden companies. Moreover, having a library of 48 original shows, it has a significant lead to drive it going forward.

  • ZEE and Helo App crafts in partnership

    ZEE and Helo App crafts in partnership

    MUMBAI: Delivering on its promise of meeting brand objectives by  providing solutions with exceptional incremental value to its clients through a platform agnostic approach, the Content & Partnerships vertical of Zee Entertainment Enterprises  Ltd (ZEEL) has taken brand solutions to newer avenues. By keeping the platform with the single largest reach – Television at the core along with other mediums to further amplify  the message, an integrated campaign was curated with the social media app Helo on Zee TV’s dance reality show- Dance India Dance Season 7 that secured an exceptional reach of 35 M+.

    Keeping the key purpose of providing innovative brand solutions on Television at its core, this pioneering initiative aims to offer exclusive multi-platform content programming running parallel to on-air content. The initiative will thereby enable its viewers to have an  immersive experience and generate personalized content.

    A 360-degree promotional strategy was formulated by bringing exclusive and engaging  content from Dance India Dance’s latest season to Helo’s 50 M monthly active users. The campaign secured a cumulative reach of 35 M+ for its content from Dance India Dance. The show’s social media engagement increased to 725 M+ views, increasing the follower base  by 1.3 M+ followers. 

    With 9.2 M+ interactions, Helo provided a platform for exclusive Dance India Dance  content to drive social native content and build better brand connect through 925M+ Hashtag views, 96M+ Video views, 9.2M+ interactions & 723K+ likes.

     Advertisement Revenue, ZEEL, Chief Growth Officer, Ashish Sehgal, commented “While Television remains a strong platform to  deliver value to our clients, ZEE aims to build an ecosystem wherein brands leverage multiple mediums to create content with us for audiences across platforms. Through this  partnership, we are highlighting our expertise of helping brands achieve an incremental reach with social-first native content, using our mediums for content marketing to amplify  their presence across platforms. We will continue to innovate and develop customized  platform-agnostic solutions for brands, which will achieve specific campaign objectives  focusing on organic engagement and delivering maximum reach, amplification and  community impact.”

  • How Dangal TV is ruling the heartland

    How Dangal TV is ruling the heartland

    MUMBAI: Nearly a decade after it was launched, Dangal TV has emerged as one of the most-watched channels in India across genres, thanks to a well-thought-out strategy of curating selective old shows and producing originals on Indian history and mythology, apart from the usual soap-operas.

    The Hindi GEC Channel Dangal TV, part of Enterr10 TV Network, has consistently topped the weekly list across genres of channels in 2019 (Source: BARC) and is a delight for media agencies and advertisers the media plan.

    Dangal has emerged as an undisputed leader in the rural Hindi-speaking market (HSM), while maintaining a decent hold in urban areas as well.

    Joy Chakraborthy, CEO, Enterr10tv, says, "It’s not just by luck that we have consistently topped the list of most popular channel in India."

    To what extent has the FTA model helped Dangal?

    Dangal was launched as a free-to-air (FTA) channel in 2009. However, since TRAI’s 2019 new tariff order (NTO) that mandates that customers select the channels and bouquets they want to subscribe and broadcasters announce the MRP of the same, Dangal has emerged as the undisputed leader in all genres of channels.

    KPMG India partner and head, media and entertainment Girish Menon says: “The top FTA GEC channels, especially on the DD Freedish platform, have commanded a high viewership share post the NTO regime, especially in the rural markets. The primary reason for the same has been the flanking channels of the top 4 broadcasters turning pay after the transition to the NTO regime, and the removal of these channels from the DD Freedish platform; which in itself has access to 30 million HHs.”

    Industry experts say that Dangal has an edge over its competitors as it is an FTA channel, a great advantage in a price sensitive market like India. Interestingly, Dangal is often the only FTA channel in the weekly BARC list of Top 10 channels by viewership. 

    Chakraborthy, however, is dismissive of those who credit Dangal’s success solely to its FTA strategy.

    “Look, after the NTO order, every media network had the option to remain in FTA space or to become paid channel. If FTA is our only mantra for success, tell me why Dangal is often the only FTA channel in the list of top 10 channels. Dangal is not the No.1 free channel. It’s the top channel across genres,” quips Chakraborthy, showing us the viewership chart for Dangal TV in 2019.

    Chakraborthy, who joined Enterr10 TV Network in March and has over 25 years of experience in M&E industry, working with Times Group, Star India, Zee, Network18 and TV Today Network, is also clear that he wants Dangal to remain free of cost: “I have no intention to convert Dangal to a paid channel. We will remain FTA channel.”

    How is Dangal making money without subscription revenue?

    Chakraborthy, who calls himself an all-in-all revenue guy, says advertising is its only source of revenue. “ROI is at the heart of all our operations. Before we commission a new show or syndicate one, we do a detailed research and check on advertising potential.”

    He points out that while advertisers have multiple options to reach consumers in metro cities, like, TV, print, OTT, etc…Dangal provides companies access to millions of consumers in the Hindi heartland where these other mediums are comparatively weak or not cost effective. It is this market where Dangal TV simply cannot be ignored and this brings advertisers.

    But, has not ad revenue declined with the GDP falling to a six-year low of 5% in August 2019?

    Chakraborthy says that while ad revenue in some mediums may have shown a decline, TV has remained mostly unaffected. On GECs, FMCG goods are the primary source of revenue and their demand has not dampened despite slowing economy. “FMCG advertisers are our bread and butter and they are doing well and pumping in monies on television. Up to 80 per cent of our ad revenue is coming from FMCG firms. Dangal’s objective is to get all potential advertisers on board without compromising in rates and values.”

    The strategy behind mythological/historical fiction shows

    Industry experts believe Dangal is successful as it has carved out a niche space for itself in the crowded Indian broadcast market. The channel has been able to maintain its distinct identity by carefully curating old shows and producing originals in the genre of Indian history, spirituality and mythology; Mahima Shanidev Ki, Ramayan, Dwarkadheesh Bhagwaan Shree Krishna, Sikandar vs porus, Chandragupta Maurya, Veer Shivaji, to name just a few.

    Dangal TV is clear about its identity and upfront about its strategy. Its website clearly defines its endeavour as an attempt to meet the “demand(s) of entertainment and information to make audience feel connected to our (Indian) ancient history and mythology.”

    The key to success for the top FTA GECs is to focus on fresh programming, with a judicious mix of shows across genres such as daily soaps, mythological and socially relevant programming, Menon says.

    That Dangal’s success is in large part owing to the unique programming line-up of mythological entertainment shows is clear from the fact that in week 19 of 2019, when Dangal TV topped the list for most popular channel across genres, its most popular show was Mahima Shanidev Ki, followed by Ramayana.

    Dangal’s brilliance lies in the fact that it was the first to realise and move in the space for a Hindi entertainment channel, focusing primarily on shows about Indian history and mythology, apart from the usual run-of-the-mill crime thriller, horror shows and family dramas.

    This space was consistently ignored by programming heads for nearly three decades despite the success of shows like Ramayana and Mahabaratha in the late eighties.

    Chakraborthy agrees: “Mythological shows are sure-shot winners. Metro cities are often oblivious to the fact that India is a deeply religious country. In addition, mythological shows can be watched with families. TV watching in India is still a family experience and parents would rather have their children watch Ramayana than Narcos or Breaking Bad.”

    Strategy behind acquiring old shows

    Dangal ratings, undoubtedly, have also been helped by successfully monetising already aired shows. Shows like Chandragupta Maurya, Bhagwaan Shree Krishna ran on Imagine TV before the channel shut abruptly in April 2012 and already aired titles like Bandini, Ramayana, Mahima Shanidev Ki, have done exceptionally well on Dangal.

    “We go through a lot of historical data before acquiring the license for any show. There are many reasons behind the success of any show. We look at shows that did not do well and analyse why it happened. Perhaps, it was a good show on a bad distribution landscape, or had too tough a competitor, or was probably on the wrong channel. We analyse such shows, acquire them at a fraction of cost, and then re-telecast them at a strategic time-slot to maximise ROI. Results are for all to see.”

    While Chakraborthy is honest in giving credit to these old shows for Dangal success, he is also quick to point out that Dangal is not just airing old shows.

    “At Dangal, I see my greatest challenge to bust the perception that we are only airing old shows. We produced Nagin, which is doing exceptionally well, Darr ki Dastak, a horror show and ‘CIF’, a crime investigation show. We have also commissioned other shows which are ready for telecast, but our current shows are doing so well that we have no time slot left for running these new shows,” Chakraborthy clarifies.

    Going forward

    Chakraborthy has a clear road map for Dangal’s future growth. While there is a rush in TV channels to tie-up with OTT platforms, Dangal’s first priority is to consolidate, maintain and further strengthen its leadership position on television which directly helps in monetisation through advertising.

    “The OTT and web plans are part of the strategy and will be shared in due course.”

    Enterr10 network is fortunate to have a visionary promoter in Manish Singhal, who has identified the right mix of people.

    In the last few months, the network has recruited Priyanka Datta as business head, Amartya Ray as head – revenue planning, sales strategy, research and operations, and Neeta Thakre.

    The Hindi GEC is a Rs 9000 crore market. If Dangal can maintain its dominant hold in this segment, like it has done so far in 2019, then surely, it will have the biggest pie of this crucial market.  

  • ZEEL’s Kartik Mahadev on Zee Café strategy, BBC First block, post-NTO campaigns

    ZEEL’s Kartik Mahadev on Zee Café strategy, BBC First block, post-NTO campaigns

    MUMBAI: English entertainment channels were feared to face the most challenging time in the NTO phase. ZEEL English Cluster Business Head Kartik Mahadev informs that initially there was a period of flux at ground level but increasing awareness of the MRP regime through campaigns has helped the subscription numbers to grow steadily. #WhereIsMyChannel campaign during transition period of NTO has resulted in an increase of subscription number for the Zee english cluster HD channels, with &flixHD reaching amongst the top two English movies HD channels.

    Mahadev spoke to Indiantelevision.com on strategies, campaigns, NTO impact, challenges faced by English entertainment channels and upcoming programmes on Zee Café. 

    Can you tell us about Zee Café’s TV-First strategy and how does it work?

    Our viewers have a keen eye for content that is new. They follow the latest trends and seek the same when it comes to their content consumption preferences. With Zee Café, it has been our constant endeavour to provide the newest and the best shows to our viewers. With over 70% of our content being available on TV first even before the digital platforms, our discerning audience gets to witness the most-recent shows that are making a mark across the globe. Unlike other broadcasters, this TV-First approach of Zee Café has truly enabled us to serve as disruptors in the category. Shows such as American Idol, Battlebots, Seal Team, FBI, A Million Little Things, Charmed, are success stories of this approach, which have been extremely well-received by our viewers. This season, with BBC First too, we brought six shows to India for the first time only on television screens first. This is a format that truly works well with our loyal audience.

    It has been three years since the channel launched BBC First in association with BBC Studios, how has your association been so far? How has the programming block BBC First grown over the years?

    In a category homogenised by American content, we took a differentiated approach by launching British dramas in 2017. This was widely appreciated by our viewers. In the week of its launch for both seasons, the TSV of the 10 pm time band doubled. The slot viewership in the 2018 season increased by 50%. We generated a total of 50 million impressions on digital with our respective hashtags trending in the last two seasons, along with increasing the channel reach by over 100%. Over the last two years, the block has been immensely appreciated by our viewers who consider it an evolved choice of consumption. British dramas gratified the voracious appetite of our audience and garnered a positive response across mediums. With the highest brand resonance for our viewers, BBC First has truly become the flagship property for the channel. The third season upheld this legacy and met with immense positive reception with a 5X increase in viewership as compared to four weeks before the launch for the 10 pm time slot.

    Brief us on #ShakenAndStirred campaign.

    Our viewers are evolved, motivated and have a global outlook. They are on the constant look-out for what is new and different along with meaningful engagements. With an abundance of content at their disposal now, it becomes more important than ever to communicate in a way that they feel this is for them. This year’s BBC First block provides our audience a point of deep connection with stories that are powerful and visceral through the shows which are a part of the block. Keeping this is mind, Zee Café took a differentiated approach and launched the campaign #ShakenAndStirred. Through the campaign for BBC First we wanted to bring alive the compelling drama and strong characters that leave a lasting impression on the viewer. The quintessential British phrase, shaken and stirred, emerged as the creative thought as it best describes the impact that the unpredictable British dramas would leave on our viewers.

    The idea was to bring out the uniqueness of each of these contemporary dramas, making it relevant to the Indian viewer. So, we collaborated with an authority in drama – Nawazuddin Siddiqui. Bringing in a local connect with his quintessential demeanour, an excited Nawazuddin, sharing his anticipation for British dramas that promise to leave you not just shaken but also stirred. Collaborating with Nawazuddin Siddiqui helped us build engaging and conversational communication, building a strong point of view for the brand. This truly reflects in the way the campaign was received across platforms with immense positive feedback from readers who appreciated the creative effort.

    Which mediums were used for #ShakenAndStirred campaign?

    We launched the #ShakenAndStirred campaign across on-air and digital platforms and amplified the same through media communication. The aim was to build conversations around British dramas and the unique promo featuring Nawazuddin Siddiqui enabled us to amplify the announcement. Further, as part of the launch, we also engaged with the fans through an exclusive preview clip of Brexit: The Uncivil War which was shared on Zee Café’s social handle, one hour before the on-air telecast. Together, all the activities paved the way for a high-decibel launch of the third season of BBC First.

    How has the responses from advertisers been, on this property?

    While the block has resonated well with our loyal audience, we’ve always managed to partner with some of the most reputable brands who’ve equally appreciated our endeavour. Over the three seasons, we have had brands such as Prestige, Dominos, Hershey’s, L’Oreal, Phillips, and Vicks with most as recurring sponsors on the BBC First block.

    How do you see the growth of English Entertainment channels in Indian market, post NTO?

    The English category on television has been growing steadily over a period of time. In last three years (pre-NTO), the viewership on English GEC genre has grown almost 2.5 times, while the English movie genre has witnessed a 26% growth in viewership and 28% growth in reach, as per BARC India data. Any big change is ought to have teething problems and NTO was no different, as it initially brought a period of flux at ground-level with consumers and distributors being confused about the regime. Largely, channel packs were being picked more on the basis of DPO suggestions. Six months on, we have observed that with increasing awareness of the MRP regime, the subscription numbers are steadily growing.

    What was the impact of NTO on Zee Café?

    One of our recent consumer research studies has reinstated that ‘TV Content is playing a strong role in bringing families together.’ For a lot of urban English consumers, TV is the Go To destination for discovery and effortless viewing. Our studies have suggested that consumers today look for curated content. They don’t want to invest time in trying to decide what best meets their interests. That’s where Zee Café as a channel comes into play. Through the channel's offerings we consistently ensure that all our programming blocks are curated based on audience tastes whether it be a block like BBC First or even Hollywood On Café. For instance, our viewers increasingly look for the latest shows and with our programming block ‘Along With The US’ they get to witness the newest international series that are trending globally and watch it live on Zee Café, before anywhere else. So, the takeaway from this is that the best curators today shall win the game. As per BARC, July 19, AB households, Indian Urban; Zee Café has the highest reach in the category and we are certain that, with growing awareness of the NTO regime, the coming quarter looks promising.

    During the transition period of NTO, ZEEL had launched #WhereIsMyChannel campaign for its English Channel cluster. How well did that campaign work?

    #WhereIsMyChannel has been successful in driving salience and consideration for the English channels amongst the target audience. Within two weeks, we delivered over 25 million sharp targeted video views with strong engagement rates. The campaign has reached to about 58 million viewers on digital and 41.53 million viewers on TV, for the two ad films. In a competitive category with several brands, the campaign has delivered over 70% ad cut-throughs which is quite strong. The ad campaign is being promoted across Zee Network’s social handles and the TV channels on air. The digital video with RJ Balaji, Mallika Dua and Varun Thakur are also a success indicator for the original films which have become a reference point for other unbranded original renditions to be created.

    Overall, it has helped drive subscription for the channel where viewers are now actively involved in the decision-making process. The campaign as also resulted in increased subscription for the Zee English Cluster HD channels, with &flixHD reaching amongst the top two English Movie HD Channels. With increasing awareness of the MRP regime, the subscription numbers are steadily growing.

    What are the challenges faced by English Entertainment channels?

    One of the biggest challenges in the ecosystem undoubtedly has been the NTO. While the English audience is highly involved in their content choices, they were not used to making the purchase decision and typically, the more affluent households would buy subscription annually. Today, there is ~90% awareness about the change, however there was a need to help consumers through the decision funnel, helping them make an active and informed choice. Hence, we launched the #WhereIsMyChannel campaign encouraging consumers towards becoming more active in making a purchase decision for International entertainment on television. Post NTO, we have observed that viewers are now adding premium packs and upgrading to HD channels. This has bolstered English Entertainment as our HD channels have seen a steady growth in subscription.

    Advertisers have spent their major chunk on Sports channels and News channels in the first half of 2019. How do you see the second half of the year especially for niche channels?

    English category caters to a unique set of influential and aspirational audiences, through its high- quality content. At Zee English Cluster, over the years, we have garnered a unique loyal audience base that consistently supports our channels which truly reflects in our movie channels &flixHD and &Privé HD having ranked number 2 and 1 respectively in their category. Premium brands across automobile, telecom, BFSI and FMCG, amongst many other categories, have over the years found a great fit with this category.

    Especially since most of the English content available on OTT has the paywall limitation, brands who want to exclusively target English category, majorly look to associate with this content, come on TV. To reach out to our affluent viewers, they have partnered with us on impact campaigns to drive perception and recall. Moreover, during peak in sports tournaments, television itself witnesses an overall growth in viewers which in turn elevates the viewership of entertainment channels as well. This year &flix launched a campaign #FlixMovieLeague to support the spirit of the sporting events in the country. So, it goes without saying that English category will continue to serve as the best platform for advertisers to reach out to the relevant audience.

    What are the new programming launches on Zee Café?

    With the festive fervour, we are bringing two of our flagship properties on Zee Café namely – Along With The US and Hollywood On Café as part of our festive offering to viewers. Last year, in its 2018 edition, Along With The US grew the 7PM – 10PM slot viewership by 52% (as per BARC, NCCS AB 15-40-Megacities). This year, with present the latest seasons of both popular favourites like Grey’s Anatomy and Supergirl, and new shows such as Carol’s Second Act and The Unicorn we are extremely thrilled to take it a notch up. Moreover, we are truly proud of a property like Hollywood On Café that brings the scale and grandeur of Hollywood on television. As part of the block last year, shows such as The Sinner and The Night Manager witnessed an increase in slot viewership by 55% and 75% respectively. This year, with a collection of shows such as LA’s Finest and The Son we have truly raised the bar and are certain that the festive line-up with resonate well with our discerning audience.

  • Marking its 27th Anniversary, Zee announces attractive Festive Bonanza Offer on its leading entertainment channels

    Marking its 27th Anniversary, Zee announces attractive Festive Bonanza Offer on its leading entertainment channels

    MUMBAI: The television industry has successfully managed to transition to the New Tariff Order (NTO) regime. Zee, as the leading television network of the country has collaborated extensively with industry players to ensure a smooth transition. To mark its 27th Anniversary, Zee has taken yet another consumer initiative, by announcing a Festive Bonanza Offer on its leading entertainment channels. As part of this festive offer, the a-la-carte price of Zee TV, Zee Marathi, Zee Bangla, Zee Telugu, Zee Kannada & Zee Sarthak have been reduced from the present Rs. 19# to Rs. 12# per month.    

    The MRP regime has brought about a significant positive change in the television broadcast industry. The biggest change for consumers has been the freedom to choose their favourite TV channels and pay only for what they like to watch. In the new pricing regime, ZEE has been leading the change with customer-centric packs focused on affordability and greater value for consumers. As an industry first, ZEE launches an attractive Festive Bonanza Offer on the a la carte prices of several leading channels of the network in order to provide an opportunity to more and more consumers to enjoy the wholesome family entertainment.

    During the transition phase, there have been a wide variety of questions in the minds of viewers. To address these queries, over the last few months ZEE initiated and anchored nation-wide initiatives to onboard Indian families into the new ecosystem and ease them into the new structure. These included multi-media multi-stakeholder communication initiative, ‘Channels Ka Chunaav 2019’ and the nationwide movement of ‘Lo Control Back’ to spread awareness of the viewer’s ability to choose in the new ecosystem, and further emphasize on their right to demand the channels of their choice from their operators.

    ZEE  Chief Revenue Officer – Affiliate Sales Atul Das said, “Zee is the pioneer of Indian television industry. Starting with ‘Zee TV’ 27 years ago, and with addition of its strong regional language offerings over the years, Zee is today the No.1 Entertainment Network in the country. Zee further demonstrated its leadership by becoming the first major broadcaster to declare MRPs under the NTO regime, in August 2018. While there were teething issues during the initial phase of NTO transition, it has brought greater transparency across the television value chain.” 

    He further added “With the announcement of this amazing Festive Bonanza Offer, we have taken yet another initiative for providing greater value to our consumers. Under this offer, MRP of our leading entertainment channels are available at an attractive MRP of Rs 12# during the festive season. We believe that this will greatly enhance consumer engagement with our channels, across the country. We urge subscribers to take full benefit of the festive offer.”

    Commenting on the initiative, Zee Entertainment  Chief Marketing Officer Prathyusha Agarwal said “With the movement from low involvement bulk purchase to high involvement active unit purchase, the MRP regime is a great move for the consumer. ZEE with its strong channel brand and culturally rooted content has become an obvious first choice for viewers. We firmly believe that we have fundamentally great products and robust value offerings. As a broadcast network, our endeavor therefore is to make our channels more and more accessible to the maximum number of viewers across the country. This Festive Bonanza Offer would be an irresistible consumer delight and will go a long way in deepening consumer loyalty with the TV entertainment category.”

    The festive season would also be accompanied by an exciting content line up of fiction and non-fiction shows, blockbuster movies and events across the ZEE network channels. To name a few – Movie Masti with Maniesh Paul, Dil Ye Ziddi hai & Zee Rishtey Awards on Zee TV, Zee Marathi awards & Lagnachi Wife Weddingchi Bayko on Zee Marathi, Zee Kutumbam Awards, Drama Juniors Season 5 & No.1 Kodalu on Zee Telugu, Jothe Jotheyalli, Zee Kutumba Awards & Uge Uge Mahadeshwara on Zee Kannada, WTPs like Shesh Theke Shuru, Kidnap & many more upcoming new fiction shows on Zee Bangla and Gruhalaxmi on Zee Sarthak.

    ZEEL currently offers a total of 60 channels (43 SD and 17 HD) in 11 languages and reaches a total of 148 million households every day. The MRP price has been revised for the following channels, under the Festive Bonanza Offer.

    Channel

    		  

    Present MRP#

    		  

    Promotional Scheme#

    		  

    Zee TV

    		  

    19

    		  

    12

    		  

    Zee Bangla

    		  

    19

    		  

    12

    		  

    Zee Sarthak

    		  

    19

    		  

    12

    		  

    Zee Marathi

    		  

    19

    		  

    12

    		  

    Zee Telugu

    		  

    19

    		  

    12

    		  

    Zee Kannada

    		  

    19

    		  

    12

    		  

     

  • Essel Group, lenders agree on timeline extension for sale of assets

    Essel Group, lenders agree on timeline extension for sale of assets

    MUMBAI: Multi-faceted business conglomerate Essel Group announced and confirmed that its lenders have unanimously agreed to extend the timeline, enabling the group to optimise the value output from the sale of its assets.

    As per the official communication issued on 20 September 2019, the group was in a steady and progressive dialogue with all the lenders. The mentioned extension of the timeline was requested purely in the interest deriving the right value of the precious assets of the group.

    The lenders have extended complete support to the group and its promoters, recognising the intrinsic value of the assets and the overall asset divestment process undertaken. The group remains confident on further divestments including its non-media assets.

  • Balaji Telefilms aims to break even consolidated business by end of FY20

    Balaji Telefilms aims to break even consolidated business by end of FY20

    MUMBAI: Balaji Telefilms Ltd (Balaji Telefilms) is hoping to break even its consolidated business by the end of the ongoing financial year. While the recent partnership of its digital arm ALTBalaji with ZEE5 will work as a key contributing factor, good movies and better cost control environment for television segment will also help the content powerhouse to achieve its aim by 31 March 2020. Moreover, the company expects significantly higher revenue from ALTBalaji at the end of this financial year compared to FY 2019.

    “Our aim is to break even on both the cash as well as on a P&L level, the consolidated business by March 31 2020 given that at this scale of operations we will be cash sufficient for a long time,” the management said in an earnings call with analysts after publishing its Q1 results.

    “The cash receipts from the sale of rights for the movies has to yet come in, it has come in Q2, so Q2, Q3 we will see that, that is the portion. H2 is when the cash situation on ALT we will see a significant increase. So the movies cash inflow starts from this quarter because the Zee deal kicks in. You will see a significant improvement in cash flow on ALT also. A combination of this will mean that we will be in a much better position breaking even like I said at the end of the year,” the management added further.

    Like the financial year 2019, ALTBalaji will be investing around  Rs150 crore this year out of which Rs 75 crore has already been invested in the first quarter itself. So, while the proposed investment in ALTBalaji will be around Rs 75 crore. the company will contemplate later if there is a need to increase funds. While Rs 100 crore is allocated for investment in content, rest of the Rs 50 crore will be used for other segments like technology, people.

    Moreover, there will be no ALTBalaji content available on big telecom platforms from 1 October 2019 due to the new ZEE5 deal. “It is a co-sharing model, share the content on ALT as well as on ZEE. Before the ZEE deal we used to share the content on about 6 to 7 partners. Now all that will be taken away and everything will be behind the paywall for all production that will go in H2,” the management commented on the newly announced deal.

    The company is also confident about a certain amount of revenue for ALTBalaji from the ZEE5 deal. It also hopes to continue on the growth trajectory of its revenue which was at Rs 7 crore in the first year and Rs 42 crore in the second year. Moreover, it also expects 1.5 to 2X growth compared to last year.

    For now, the deal has been struck for two years where the IP will be co-shared by both the platforms, unlike a TV production deal. Moreover, the library of 38-40 shows that have been produced will continue to be exclusively with the OTT platform.

    “What the Zee deal does is that there will be no telcos now where freely content will be available, so there is no free-pricing model, everything goes behind the pay and therefore we are more confident that we will be able to get direct subscriptions. Our library of 38 shows will be exclusive to us. Only the fresh shows in H2 will go to ZEE5. So these factors lead us to believe that we will have direct subscription growth year-on-year,” the management commented.

  • ZEEL’s Punit Goenka on Oppenheimer transaction, strategic investor, additional stake sale

    ZEEL’s Punit Goenka on Oppenheimer transaction, strategic investor, additional stake sale

    MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday announced what much of the media and entertainment as well as the investor ecosystem had been waiting to hear for a while. ZEEL reached an agreement with US-based Invesco Oppenheimer Developing Markets Fund for 11 per cent (around Rs 400 per share) of the promoter stake for Rs 4,224 crore. This essentially means the fund will intensify its shareholding to 18.7 per cent in the company.

    This is the second round of good news for the Essel Group promoter family after acing Q1 of FY20 with a 40 per cent jump in its profit at Rs 512 crore on a revenue of Rs 1,789 crore, capping off a 14.5 per cent year-on-year growth.

    The infusion of Rs 4,224 crore will give some relief to the group as it races to meet the 30 September deadline to pay off loans to the tune of Rs 11,000 crore to mutual funds, NBFCs and banks.  

    ZEEL MD & CEO Punit Goenka expects the Invesco Oppenheimer transaction to get completed by 31 August. He added that the deal will be done through an escrow mechanism wherein “the lenders will have to pool their shares and once the escrow agent confirms that the requisite number of shares have been placed, they will tell Oppenheimer to wire the funds and therefore on that day, the transfer of both will happen.”

    Goenka is confident that the promoters will be able to raise the remainder Rs 6,800-odd crore it needs to repay lenders by selling off some of its non-media assets in which it has invested like roads, infrastructure and solar energy. He was speaking to investment analysts late in the evening of 31 July.

    Invesco Oppenheimer, which until now owned 7.74 percent stake in ZEEL, is a pure equity shareholder and won’t have a seat on the board, he pointed out.

    “There’s no such agreement but I am pretty confident once investor like Invesco Oppenheimer is buying 11 per cent stake at certain price that validates our value. Therefore anybody else who may look at ZEE can’t really question it and that price should be very easily selling through,” said Goenka responding to whether ZEEL would sell rest of the stake below Rs 400 per share.

    Notably, Goenka did not rule out selling more promoter stake in the company. He also added that the Essel Group has zeroed in on buyers for some of its non-media assets. However, should the sale of these assets disrupt the repayment timelines, then the company will “step it up with the Zee stake sale,” Goenka revealed.

    ZEEL opted against a deal with a strategic partner for it would have taken longer to close the transaction thereby delaying the repayment process. 

    “Strategic investor is off the table for now,” Goenka remarked.

    He, however, briefly touched upon the possibility of ZEEL partnering some of its other media assets with like-minded strategic partners.

    Having consistently delivered profits and maintained a good growth trajectory, ZEEL’s prospect of finding a financial investor or strategic partner was doubted by few. This was despite mutual funds having witnessed their investments in the group turn illiquid of late.

    The sentiment was echoed by Invesco-Oppenheimer Developing Markets Fund portfolio manager Justin Leverenz who described the transaction as “highly compelling” for investors in the fund due to the “sound fundamentals of Zee.”

    The latest development is bound to cheer investors and lenders like mutual funds and insurance companies that had lent considerably to ZEEL’s promoters against collateral.

    “After this entire episode, promoters will be left with enough stake in ZEE for them to get motivated and excited to continue running the company with the legacy it has done so far,” Goenka remarked.

    With the ZEEL promoters now set to repay the debt to lenders and investors from the proceeds of the stake sale, some of the debt funds that have been under the pump will now also be able to fulfill commitments to their investors.

    It has taken ZEEL extended deadlines to get to this point. In a sense, the entire process from taking the tough call to sell promoter stake to striking the right deal amidst back-to-the-wall negotiations has been synonymous with what founder and chairman Subhash Chandra has embodied all his life – living to fight another day.

  • Zee Tamil is summit partner for Indiantelevision.com’s Tele-Wise Tamil

    Zee Tamil is summit partner for Indiantelevision.com’s Tele-Wise Tamil

    MUMBAI: Zee Tamil has partnered Indiantelevision.com for the first edition of Tele-Wise. In its debut edition, Tele-Wise will showcase the power of television in the very significant Tamil Nadu market. The event will be held on 6 August 2019 at the ITC Grand Chola, Chennai.

    Tele-Wise Tamil aims to create a platform for industry stakeholders to understand, analyse and find potential solutions to issues faced by broadcasters and advertisers in the state. While Tamil Nadu boasts of a vibrant TV ecosystem, industry watchers are convinced there is scope to push the envelope on content, advertising and distribution fronts.

    The state has over 35 channels offering Rs 11.6 crore seconds of advertisement annually, the Tamil TV boasts of Rs 2,000 crore-plus potential. For perspective, that is nearly 10 percent of India’s total TV ad spend coming from just one state.

    "With the television industry witnessing churns of changes and development, we believe that dialogue among stakeholders would be key to uncovering the nuances of the market and discovering its potential. We are happy to be partnering with the first edition of Indiantelevision.com's Tele-Wise in Chennai and look forward to the multi-layered debates and discussions that are sure to bring significant value to all attendees," ZEEL EVP and cluster head south business Siju Prabhakaran said.

    Tele-Wise Tamil will comprise a series of one-on-one chats, panel discussions and presentations dissecting all the important factors at play in the state are broadcasting business.

    The day-long summit will see some of the finest minds in the ecosystem will weigh on the bright spots of the Tamil market and highlighted the areas that need fine-tuning.

    The audience will get insights into how national and local advertisers are looking for as well as views of some of India’s biggest broadcasters.

    Among the key speakers at the summit will be ZEEL EVP and cluster head south business Siju Prabhakaran, News18 Network CEO – languages Karan Abhishek Singh, BARC India COO Romil Ramgarhia, Vikatan Group MD B Srinivasan among others.

  • Punit Goenka on Zee Entertainment stake sale: Have one binding offer, awaiting another

    Punit Goenka on Zee Entertainment stake sale: Have one binding offer, awaiting another

    MUMBAI: With speculation rife over the stake sale of Zee Entertainment Enterprises Limited (ZEEL), MD and CEO Punit Goenka on Tuesday suggested that the company was inching closer to ink the high-profile deal.

    Goenka revealed that the media and entertainment conglomerate now has one binding offer with them, and expects another one to come in the next few days. Goenka had earlier stated that the stake sale would be completed by July .

    “I accept that we have received two non-binding term sheets. Out of that we now have one binding offer with us, we are expecting to receive another binding offer over the next few days. Once both the offers are on the table the family will evaluate and take a decision,” Goenka said during an earnings call after the Q1 result for FY20.

    ZEEL reported 13.3 per cent year-on-year growth, with total revenue standing at Rs. 20,081 million. The company highlighted domestic broadcast and digital business as growth driver for the strong performance.

    ZEEL’s advertising revenue also witnessed a 3.6 per cent year-on-year growth. In Q1 FY20, the advertising revenue was at Rs. 11,867 million. While domestic advertising revenue grew by 4.2 per cent year-on-year to Rs. 11,322 million, international advertising revenue for the quarter was Rs. 545 million.

    Goenka, however, did not reveal any information about the nature of the deal. He also added that it is now a matter of days before ZEEL makes a formal announcement on the stake sale.

    Goenka also clarified that ZEE Media cannot be part of any stake sale process because of the FDI norms that exist in that sector.

    “On the offer on stake sale, I am expecting the second offer to come in a matter of days. If that offer was not to come in, then we will be of course going with the binding offer that we already obtained. But I am quite hopeful that the second offer will also come in,” he commented on the timeline of the second binding offer.

    In November last year, ZEEL had revealed the decision of its promoters to sell up to 50 per cent of their equity in the company to a strategic partner.

    The objective of the stake sale was to transform Zee into a global media tech player. In the last few months, a slew of big companies have rumoured to have shown an interest in picking up a stake in one of India’s most iconic companies.