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Tag: Zeel

  • Budget 2022: 5G & rural broadband BharatNet to boost overall internet connectivity

    Budget 2022: 5G & rural broadband BharatNet to boost overall internet connectivity

    Mumbai: Giving a boost to the country’s Digital India ambitions, finance minister Nirmala Sitharaman while announcing the union budget 2022 on 1 February said that 5G telecom services will be introduced in India in FY2022-23. Spectrum auctions are likely to be held soon to facilitate the roll-out of 5G by private telecom companies. Design-led initiatives for 5G and other technologies will henceforth be included in the production linked incentive (PLI) scheme, added Sitharaman.

    Among other big announcements impacting telecom/internet connectivity, BharatNet broadband is expected to be ready by 2025. Contracts for laying optical fibres in all villages will be awarded under the project through public-private partnerships in 2022, 2023. “Our vision is that all villages and their residents should have the same access to e-services as urban areas,” stated Sitharaman while adding that five per cent of the annual collections Universal Service Obligation Fund will be allocated to enable affordable broadband and mobile penetration in rural and remote areas.

    The government’s flagship rural broadband connectivity program, BharatNet aims to bring broadband to 361,000 villages across 16 states, including 1.37 lakh gram panchayats. by acting as a middle-mile network allowing Internet service providers (ISPs), local cable operators, MSOs and other agencies to use its bandwidth and incremental fibre.

    According to the economic survey released on 31 January 2022, as on September 2021, 5.46 lakh km Optical Fiber Cable has been laid, a total of 1.73 lakh Gram Panchayats (GP) have been connected by Optical Fiber Cable (OFC) and 1.59 lakh Gram Panchayats are service ready on OFC under the BharatNet project. In addition, 4173 GPs have been connected over satellite media. Wi-Fi hotspots have been installed at 1.04 lakh Gram Panchayats of which services are being provided at 0.64 lakh, catering to more than 16.17 lakh subscribers with a data usage to the tune of 5670.42 TB per month

    The survey further revealed that internet penetration in the country is growing steadily with internet subscribers increasing from 302.33 million in March 2015 to 833.71 million in June 2021. While 67.2 percent of internet subscribers had narrowband connections and 32.8 percent had broadband connections in 2015, the composition had reversed by June 2021 with only 4 percent of subscribers having narrowband and 96 percent with broadband connections. As of September 2021, around 161 villages out of 354 villages have been covered with mobile service.

    Here is what the industry experts had to say:

    Elara Capital’s Karan Taurani noted, “Push towards affordable and high speed fixed broadband internet will boost digital content consumption and smart TV penetration into rural and smaller towns. It will also lead to shifting of eyeballs from TV to digital at a much rapid pace in smaller towns too, just like it has happened in metros.”  This will help enable strong user and consumption growth for the B2C-led internet and new-age companies, which in turn will lead to a rapid shift from traditional to digital. According to him, this could have a positive impact on overall advertising, as internet companies now account for a sizable share of ad spends in India.

    However, Taurani rued the absence of initiatives to protect the interests of traditional media despite the negative impact of Covid. “There was no relaxation on the license fees or royalty for radio industry, no financial grant or tax benefit for the traditional media which has seen a sharp decline over last two years and still struggles to get back to pre Covid levels, and no reduction in GST for cinema ticket prices, despite cinema being one of the most impacted medium during the pandemic,” he said.

    Welcoming the push for internet connectivity, Logicserve Digital founder and CEO Prasad Shejale said, 5G spectrum auctions will finally make the dream of a tech-savvy India a reality, further boosting the country’s digital infrastructure. Additionally, the launch of a design-led manufacturing scheme for the 5G ecosystem as part of the PLI scheme will ensure affordable broadband and mobile communication even in far-flung areas. The availability of high-speed internet connectivity in urban as well as rural areas will encourage marketers to experiment with blockchain, AR, VR. The overall budget is future tech-enabled and balanced.”

    “Media consumption is in for a disruption like never before. 5G is going to change the way digital functions and is going to just accelerate the metaverse and Web3 adoption,” added White Rivers Media CEO and co-founder Shrenik Gandhi.

    Specialised task force for AVGC

    The M&E industry will also benefit from setting up a specialised task force for the promotion of Animation, visual effects, gaming and comics (AVGC) industry, as well as the expansion of the ‘One class, one TV channel’ program of PM eVIDYA from 12 to 200 TV channels proposed under the budget.

    Zeel MD and CEO Punit Goenka said, “The holistic focus on broad-based economic recovery in the Union Budget, with a huge emphasis on job creation and digital ecosystem of the country, is positive for India Inc. at large. The steps announced to build domestic capacity for the Animation, Visual-Effects, Gaming, and Comics segment will certainly help enhance capabilities, enabling the Country to compete more effectively at a global stage. An extension in the credit line guarantee scheme is also a welcome move, which will provide some much-needed relief to the relevant sectors which were impacted due to the pandemic.”

    According to vernacular audio platform Khabri’s co-founder and CEO Pulkit Sharma, regional languages will be empowered through the program, which enables all states to provide supplementary education in regional languages for classes 1 to 12. “These digital initiatives will provide for a more conducive environment for the adoption of tech-based learning and which will directly route to empowering youth from real Bharat,” he said.

  • #Retrace2021: How streaming wars re-shaped the global M&E industry in 2021

    #Retrace2021: How streaming wars re-shaped the global M&E industry in 2021

    Mumbai: Beginning with the blockbuster M&A deal between Discovery and AT&T in May which created the world’s second-largest media company by revenue after Disney, intensifying streaming wars reshaped the global media and entertainment industry through 2021. At the heart of this transformation was the mindboggling demand for content.

    According to research led by European economic consultancy Frontier Economics manager Clive Kenny, OCC (Online Curated Content) providers directly invested $25.7bn (Rs 1.8trn) in OCC content worldwide in 2019, including original and licensed titles. This sum is likely to soar to $61bn (Rs 4.3trn) by 2024. Significant increase in content investment in the pipeline includes: The Walt Disney Company’s plans to invest $14bn-16bn (Rs 985bn-1,126bn) per year in global OCC content by 2024; ViacomCBS’s plans to ramp up investment in OCC content to $5bn (Rs 352bn) in 2024; WarnerMedia’s parent company, AT&T’s, pledge to invest $4bn (Rs 282bn) in HBO Max in the three years through 2022; and, Netflix will spend $28bn (Rs 1.97trn) a year by 2028.

    Driven by tech, worldwide changes in viewers’ media consumption habits in the context of more genres, newer formats, and platform choices are here to stay and grow further, and the scope for this growth is immense. The importance, as well as the urgency of sourcing content to satiate this rather ravenous appetite for entertainment, will continue effecting similar shifts in the sector going ahead. The equation will balance out between global giants wanting to create worldwide media behemoths and (comparatively) ‘local’ players striving to maintain their individuality and independence in the market.

    Here’s a look back at some of the biggest industry deals that made news in 2021. Even though not driven by the streaming wars, the $5 bn acquisition of Yahoo (formerly Verizon Media) by Apollo Global Management finds a place in this list for being the culmination of Verizon’s persistent efforts to establish itself in the online media space.

    AT&T and Discovery: Announced in May 2021 through an all-stock transaction called the Reverse Morris Trust, the AT&T, and Discovery merger deal aimed at giving rise to a content powerhouse to be led by Discovery president and CEO David Zaslav. The merged entity will bring together brands like Warner Bros., HBO, Discovery, DC Comics, CNN, Cartoon Network, HGTV, Food Network, the Turner Networks, TNT, TBS, Eurosport, Magnolia, TLC, Animal Planet, and ID.

    The emphasis on the D2C aspect of the business was clearly spelled out in the official statement which read “the new company will compete globally in the fast-growing direct-to-consumer business, bringing compelling content to D2C subscribers across its portfolio, including HBO Max and the recently launched discovery+.”

    Televisa and Univision: In April, Mexican and Latin American media giant Televisa and US Hispanic network Univison merged their media, content, and production assets to create a global Spanish-language powerhouse. The combined entity Televisa-Univision will be led by Univision CEO Wade Davis. It will have the largest Spanish-language library of owned content, serving two of the world’s largest Spanish-speaking markets the US and Mexico.

    According to the Television Business International, the “merger was designed to enable the new company to address what it believes is the relatively nascent global Spanish-language streaming market. The pair said that the Spanish-language market, which represents around 600 million people globally, and an aggregate GDP of about $7 trillion, is significantly underserved from a streaming perspective relative to other major markets. They cited the stat that fewer than 10 per cent of the Spanish speaking population currently use an OTT video product, compared with the English language market where nearly 70 per cent of the population has at least one streaming service.”

    The deal brought together Televisa’s four free-to-air channels, 27 pay-TV networks channels and stations, Videocine movie studio, Blim TV SVOD service, and the Televisa trademark with Univision’s assets in the US including the Univision and UniMás broadcast networks, nine Spanish-language cable networks, 61 television stations, 58 radio stations in major US Hispanic markets and Puerto Rico, and digital assets, notably the recently launched AVOD streaming service PrendeTV.

    TF1 and M6: With a view to providing a “French response to the challenges from global platforms” Groupe Bouygues and RTL Group announced the $4bn merger of leading French commercial broadcasters TF1 and M6 to form a new “French total video champion” in May. The resulting entity will bring together the strengths of the companies’ D2C streaming businesses operating under the brand names MyTF1 and 6play.

    Said the companies, “This market where linear TV remains a powerful media is undergoing a structural transformation with a strong shift towards on-demand consumption. The combination of these two players, of the know-how of their employees and of their strong brands, would allow the new group to invest more and to step-up innovation. The proposed merger is critical to ensure the long-term independence of French content creation and to continue to offer diversified and premium local content to the benefit of all viewers.”

    Amazon acquires MGM: In the same month, global tech giant Amazon acquired Hollywood studio MGM for $8.45 Bn. MGM is behind classics such as ‘Gone with the Wind’, and ‘Rocky’, the famous Bond franchise, ‘Singin’ in the Rain’, ‘12 Angry Men’,  as well as popular reality TV shows like ‘The Voice’ and ‘Shark Tank’.

    Amazon has been ramping up its content spend to stay competitive amidst the fare being churned out by Netflix and Disney. “The real financial value behind this deal is the treasure trove of IP in the deep catalogue that we plan to re-imagine and develop together with MGM’s talented team,” said Amazon Studios and Prime Video SVP Mike Hopkins. 

    Fox Entertainment buys MarVista: With an aim to develop content for its digital outlets including the ad-supported streaming platform Tubi, Fox Entertainment closed the year with acquiring MarVista Entertainment in December. Founded in 2003, MarVista specialises in production for digital platforms. Having created an average of 80 titles across different genres, the studio boasts a content catalogue of over 2500 programming hours.

    “With these key strategic advantages, acquiring and investing in MarVista aligns perfectly with Fox Entertainment’s long-term vision for streaming and diversifying our in-house capabilities and infrastructure, as we expand our portfolio,” said CEO of Fox Entertainment Charlie Collier.

    The deal was most recently in the series of Fox’s attempts this year to bolster its streaming and digital capabilities. It follows the September acquisition of celebrity-focused news outlet TMZ from WarnerMedia and the launch of Studio Ramsay Global, a production entity focused on culinary and lifestyle programming with restaurateur Gordon Ramsay.

    RTL Group and Talpa Network: The merger of RTL Nederland and Talpa Network assets was announced in June this year with the intention of creating a strong Dutch cross-media group across TV, streaming, radio, print, and digital, as well as to the benefit of audiences and the Dutch creative industry. The plan spelled out a “clear ambition to further expand Videoland” –  the leading Dutch streaming service with one million paying subscribers.

    According to the agreements, Talpa Network will contribute its TV, radio, print, digital, e-commerce, and other assets to RTL Nederland and will receive a 30 per cent stake in the enlarged RTL Nederland in return.

    In addition, Talpa Network’s content units (Talpa Concepts, Talpa Entertainment Producties) – which are not part of the deal – and RTL Nederland will enter into a content agreement for newly developed formats for linear TV channels and for the streaming service Videoland.
    The annual content spend of the combined group amounts to more than €400 million.

    ZEEL-SPNI merger: The Zee Entertainment Enterprises Ltd (Zeel) and Sony Pictures Networks India (SPNI) mega-merger announced in September combined the two media giants’ linear networks, digital assets, production operations, and programme libraries to create one of India’s largest media and entertainment entities (close to $2 billion in revenue) in terms of market share.

    In an investor call, Punit Goenka, managing director, and chief executive officer of the merged entity, revealed that it will target overall growth with a focus on sports and digital. As part of the deal, Sony agreed to infuse $1.6 billion cash which will enable the merged entity to accelerate its digital platform and significantly invest in premium content including sports.

    Both SPNI and Zeel had been on the lookout for a partner that could bring in mutual synergies, while minimising clashes, to fend off competition amid growing consolidation in the media and entertainment industry.  With this, the Zeel-Sony merged entity will compete in the market with market leader DisneyStar India, Viacom18-RIL, and the only standalone, player Sun TV Network. Given their relative strengths in scripted, factual, and sports programming, respective distribution footprints across India, and iconic entertainment brands, the combined company will try to meet the growing consumer demand for premium content across entertainment touchpoints and platforms.

    Under the terms of the definitive agreements, SPNI will have cash balance of $1.5 billion closing, including through infusion by the current shareholders of SPNI and the promoters (founders) of Zeel, to enable the combined company to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities.

    Content Partnerships: While there were fewer major acquisitions happening in India, multi-year content partnerships between streaming platforms and mainstream production houses emerged as a significant trend through 2021. Under the Netflix India and Excel Entertainment deal inked in September, the Ritesh Sidhwani and Farhan Akhtar-owned production house will produce a variety of stories under its series banner Excel Media & Entertainment for Netflix members in over 190 countries.

    More recently streaming platform Zee5 entered into a strategic partnership with content and IP studio Applause Entertainment, a venture of Aditya Birla Group for a multi-show association. The two content companies will collaborate to create a robust original content slate of new Zee5 originals in Hindi to entertain viewers across the globe.

    Apollo acquires Yahoo (formerly Verizon Media): The $5 bn deal involving Private equity firm Apollo Global Management’s complete acquisition of Yahoo (formerly Verizon Media) from Verizon was announced in September this year. The group’s assets including titular Yahoo properties and the TechCrunch, AOL, Engadget, and RYOT brands encompass around 900 million monthly active users globally under the umbrella brand which is currently the third-largest internet property, per Apollo’s figures.

    Even though not driven by the streaming wars, the acquisition is significant for being the culmination of Verizon’s years-long strive to establish itself in online media, specifically adtech. It was preceded by the telco’s $4.4 bn acquisition of AOL in 2015 and Yahoo in 2017 for $4.5 bn. 

  • SPNI and Zeel sign definite agreements to merge

    SPNI and Zeel sign definite agreements to merge

    Mumbai: Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises (Zeel) announced early on Wednesday that they have signed definitive agreements to merge Zeel with and into SPNI and combine their linear networks, digital assets, production operations, and program libraries.

    The agreements follow the conclusion of an exclusive negotiation period during which Zeel and SPNI conducted mutual due diligence. After closing, the new combined company will be publicly listed in India. The closing of the transaction is, however, subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals.

    Under the terms of the definitive agreements, SPNI will have cash balance of $1.5 billion closing, including through infusion by the current shareholders of SPNI and the promoters (founders) of Zeel, to enable the combined company to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities.

    SPNI is an indirect subsidiary of Sony Pictures Entertainment Inc (SPE). Under the transactions contemplated by a non-compete agreement, SPE, through a subsidiary, will pay a non-compete fee to certain promoters (founders) of Zeel, which will be used by such promoters (founders) to infuse primary equity capital into SPNI, entitling the promoters (founders) of Zeel to acquire shares of SPNI, which would eventually equal approximately 2.11 per cent of the shares of the combined company on a post-closing basis. After the closing, SPE will indirectly hold a majority 50.86 per cent of the combined company, the promoters (founders) of Zeel will hold 3.99 per cent, and the other Zeel shareholders will hold a 45.15 per cent stake.

    Punit Goenka to lead the combined entity

    Punit Goenka will lead the combined company as its managing director & CEO. The majority of the board of directors of the combined company will be nominated by the Sony Group and will include the current SPNI managing director and CEO, N P Singh. On closing, Singh will assume a broader executive position at SPE as chairman, Sony Pictures India (a division of SPE) reporting to SPE’s chairman of Global Television Studios and SPE Corporate Development Ravi Ahuja.

    “It is a significant milestone for all of us, as two leading media & entertainment companies join hands to drive the next era of entertainment filled with immense opportunities. The combined company will create a comprehensive entertainment business, enabling us to serve our consumers with wider content choices across platforms,” said Zeel MD and CEO Punit Goenka. “This merger presents a significant opportunity to jointly take the businesses to the next level and drive substantial growth in the global arena.”

    Synergy in Scripted, factual, and sports programming

    The combination of Zeel and SPNI is expected to achieve business synergies and given their relative strengths in scripted, factual and sports programming, respective distribution footprints across India and iconic entertainment brands, the combined company try to meet the growing consumer demand for premium content across entertainment touchpoints and platforms.

    As part of the definitive agreements, the promoters (founders) of Zeel have agreed to limit the equity that they may own in the combined company to 20 per cent of its outstanding shares. “This construct does not provide the promoters (founders) of Zeel any pre-emptive or other rights to acquire equity of the combined company from the Sony Group, the combined company or any other party. Any shares purchased by the promoters (founders) of ZEEL, must be in compliance with all applicable laws including any pricing guidelines,” it said in a statement.

     “Today marks an important step in our efforts to bring together some of the strongest leadership teams, content creators, and film libraries in the media business to create extraordinary entertainment and value for Indian consumers,” said SPE’s chairman of Global Television Studios and SPE Corporate Development Ravi Ahuja. “I especially want to thank N P Singh, who presented us with the idea to explore this merger well over a year ago.”

    SPNI MD and CEO N P Singh said the merger will create a company that will redefine the contours of the media and entertainment industry. “As a representative of SPE on the Board of the new merged company, it will be my endeavour to provide strategic guidance and support to the company’s operating team in achieving our vision,” he added.

  • Sebi cautions Zeel for taking ‘considerable time’ to disclose Invesco notice

    Sebi cautions Zeel for taking ‘considerable time’ to disclose Invesco notice

    Mumbai: Post its board meeting on 11 November, Zee Entertainment Enterprises Ltd (Zeel) has notified the Bombay Stock Exchange of a caution letter issued by the Securities and Exchange Board of India (Sebi) on 21 October. The regulator cautioned Zeel for taking “considerable time” to disclose the requisition notice sent by its shareholders Invesco Developing Markets Fund and OFI Global China Fund LLC.

    On 11 September, the two shareholders sent a notice to Zeel to call for an extraordinary general meeting of shareholders to pass a resolution reconstituting the board. Sebi’s letter indicates that Zeel took more than the stipulated 24 hours to disclose the notice and began the verification exercise after nearly 36 hours.

    “Considering the gravity of the contents of the letter, such verification mail could have been sent by the company at the start of the business day itself on 13 September while simultaneously initiating their independent process of verification of their records,” noted Sebi.

    “Since the disclosure had bearing on on-going e-voting; due to overlapping resolutions in the letter and the AGM; as a good governance practice the company should have disclosed the said letter within 24 hours of receipt of the letter,” it added.

    Sebi has cautioned the company to exercise due diligence in ensuring the timeliness of disclosures. The letter stated that “any such aberration in the future would be viewed seriously and appropriate action would be taken.”

    Zeel and its majority shareholder Invesco are embroiled in a boardroom battle after the investor sought to remove long-standing members of the board and its managing director and chief executive officer Punit Goenka. The matter is currently being heard by the Bombay high court and the next hearing is scheduled for 29 November.

  • Zeel Q2 FY22: New content launches bolsters ad revenue growth

    Zeel Q2 FY22: New content launches bolsters ad revenue growth

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) announced its financial results for the second quarter FY 2022 ended on 30 September. The company reported 14.9 per cent revenue growth year-on-year (YoY) and 20.1 per cent domestic advertising revenue growth YoY.

    The company’s total revenues stood at Rs 1305 million which was up 17 per cent sequentially. Its EBIDTA was Rs 4121 million and its EBIDTA margins at 20.8 per cent. The company’s advertising revenues stood at Rs 10,893 million and subscription revenues at Rs 7,885 million. Domestic ad revenue grew on a quarter-on-quarter basis by 18.9 per cent. Subscription revenues were down marginally by 1.5 per cent YoY. The company indicated that delay in NTO 2.0 implementation continues to impact pricing. The new timeline for NTO 2.0 rollout was extended till 1 April 2022.

    The broadcaster saw its total TV viewership decrease slightly but grew its network viewership share by 70 bps on account of new show launches across all markets. It released 13 new shows and movies during the quarter. Zee TV, Zee Marathi, and Zee Tamil’s performance was soft during the quarter. The Bengali, Kannada, and Telugu channels posted a strong performance. Genre-wise news and movies led to lower contribution in overall viewership.

    The company reported 93.2 million global monthly active users (MAUs) for its streaming platform ZEE5. Zeel’s film production arm Zee Studios has a strong slate of movies ready for H2 FY22 across Hindi, Tamil, Telugu, Marathi, and Punjabi languages being planned for release.

    In an investor call, Zeel managing director and chief executive officer Punit Goenka shared an update on the merger between Zeel and Sony Pictures Networks India. He said, “After receiving in-principle approval from the board, the due diligence process has commenced and is in steady progress. We are confident that this process will be completed within the stipulated timelines or even before that. Post which we will move on to the next steps as mandated by the law.”

  • Zeel schedules board meeting on 11 November

    Zeel schedules board meeting on 11 November

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) has announced that it will hold a board meeting on 11 November to approve the unaudited financial results for the quarter ended on 30 September.

    Previously, in a BSE filing dated 26 October the company had informed shareholders that it had cancelled the board meeting that was scheduled for 27 October citing lack of quorum.

    Zeel is in the midst of a boardroom struggle with its majority shareholders Invesco Developing Markets Fund and OFI Global China Fund LLC who combined own 18 per cent stake in the company. The two shareholders had called for an extraordinary general meeting (EGM) of shareholders to remove the sitting managing director and chief executive officer Puneet Goenka and other members of the board. Two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations. 

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (MIB).

    Zeel has refused to conduct the EGM citing ‘shareholders interest’ and moved to the Bombay high court on 2 October claiming that the call for an EGM was “illegal and invalid.” The next hearing in the case will be held on 29 November.

  • Bombay HC grants Zeel temporary relief from Invesco’s EGM notice

    Bombay HC grants Zeel temporary relief from Invesco’s EGM notice

    Mumbai: The Bombay high court has ruled in favour of Zee Entertainment Enterprises Ltd (Zeel) temporarily barring the requisition notice by its majority shareholder Invesco to call for an extraordinary general meeting (EGM).

    In another development, Zeel has also cancelled its board meeting scheduled on 27 October to discuss the unaudited financial results for the second quarter of the year ended 30 September citing lack of quorum. In the BSE filing, the company said that the next date of the meeting will be duly informed with fresh notice.

    “The decision taken by the hon’ble Bombay high court is a huge win for all the stakeholders of the company,” a Zeel spokesperson said in a statement on Tuesday.

    The National Company Law Tribunal (NCLT) hearing on a petition moved by Invesco on the EGM notice will be held on Wednesday. The NCLT is likely to follow the Bombay high court decision.

    The Zeel-Invesco tussle began when the media company’s two top investors Invesco Developing Markets Fund and OFI Global China Fund LLC who combined own 18 per cent stake in the company had sent a requisition notice to the company on 11 September to call an EGM even after two weeks, the investors moved to NCLT, citing provisions of company law, according to which the company is bound to call for an EGM within a specific number of days if stakeholder demanding it owns more than 10 per cent of the company.

    The investors had also sought the removal of long-standing directors and close associates of the Chandra family from the board. The two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations.

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (MIB).

    Zeel refused to conduct the EGM citing ‘shareholders interest’ and moved to Bombay high court on 2 October seeking to declare the requisition notice as “illegal and invalid.”

  • Zeel-Invesco tussle: NCLT hearing to be held on 27 Oct

    Zeel-Invesco tussle: NCLT hearing to be held on 27 Oct

    Mumbai: In a new development in the boardroom battle between Zee Entertainment Enterprises Ltd (Zeel) and it’s majority shareholder Invesco Developing Markets Fund, the National Company Law Tribunal (NCLT) has scheduled the next hearing on 27 October.

    The case will be heard a day after the Bombay high court hearing on 26 October.

    In its reply to Invesco’s petition, Zeel claimed that the ‘sudden and abrupt’ issuance of of the requisition notice seeking removal of the sitting managing director and chief executive officer Punit Goenka’s from the board appears to be a ‘malafide and motivated’ action, according to an ET report.

    The affidavit also claimed that Invesco not only wanted to take control of the board of Zeel but also sabotage the merger deal with Sony Pictures Networks India to the disadvantage of shareholders.

    The Zeel-Invesco tussle began when the media company’s two top investors Invesco Developing Markets Fund and OFI Global China Fund LLC who combined own 18 per cent stake in the company had sent a requisition notice to the company on 11 September to call an EGM even after two weeks, the investors moved to NCLT, citing provisions of company law, according to which the company is bound to call for an EGM within a specific number of days, if stakeholder demanding it owns more than 10 per cent of the company.

    The investors had also sought the removal of long-standing directors and close associates of the Chandra family from the board. The two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations.

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (MIB).

    Zeel refused to conduct the EGM citing ‘shareholders interest’ and moved to Bombay high court on 2 October seeking to declare the requisition notice as “illegal and invalid.” Meanwhile, Invesco filed a petition with the NCLT to demand their right to call for an EGM.

  • Zeel-Invesco tussle: Bombay HC directs Zeel to call for EGM

    Zeel-Invesco tussle: Bombay HC directs Zeel to call for EGM

    Mumbai: The Bombay high court asked Zee Entertainment Enterprises Ltd (Zeel) to call for the extraordinary general meeting (EGM) requisitioned by Invesco Developing Markets Fund on Thursday. Zeel must inform the court of the EGM date by Friday morning.

    According to a Business Standard and Reuters report, Zeel agreed to hold the EGM only if its right to contest the validity of the resolution passed at the meeting is reserved. The court determined that any resolution passed at the meeting will be put on hold until it decides on the validity of Invesco’s request. The bench suggested that a neutral chairperson should head the meeting who may be from the corporate world, a lawyer, or a judge.

    The Zeel-Invesco tussle began when the media company’s two top investors Invesco Developing Markets Fund and OFI Global China Fund LLC who combined own 18 per cent stake in the company had sent a requisition notice to the company on 11 September to call an EGM even after two weeks, the investors moved to National Company Law Tribunal (NCLT), citing provisions of company law, according to which the company is bound to call for an EGM within a specific number of days if stakeholder demanding it owns more than 10 per cent of the company.

    The investors had also sought the removal of long-standing directors and close associates of the Chandra family from the board. The two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations. 

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (MIB).

    Zeel refused to conduct the EGM citing ‘shareholders interest’ and moved to Bombay high court on 2 October seeking to declare the requisition notice as “illegal and invalid.”

  • NTO 2.0: Zeel announces new a-la-carte channel and bouquet pricing

    NTO 2.0: Zeel announces new a-la-carte channel and bouquet pricing

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) has released its new a-la-carte channel and bouquet pricing in line with the Bombay high court order dated 30 June 2021 with regard to new tariff order (NTO) 2.0.

    “The said pricing is being released without prejudice to Zeel’s rights and contentions under all petitions pending adjudication before the Supreme Court w.r.t. new tariff order (NTO) 2.0,” said a Zeel spokesperson.

    The new channel rate card will be effective from 1 December.

    According to the channel rate card, Zeel standard definition channels including Hindi GEC Zee TV, Marathi GEC Zee Marathi, Bengali GEC Zee Bangla, Odia GEC Zee Sarthak, Telugu GEC Zee Telugu, Kannada GEC Zee Kannada have been priced greater than Rs 12.

    Among its high-definition channels, Zee TV HD, Zee Marathi HD, Zee Bangla HD, Zee Tamil HD, Zee Telugu HD, Zee Cinemalu HD, and Zee Kannada HD also have an MRP greater than Rs 12.

    As per new tariff regime 2.0 order, the Telecom Regulatory Authority of India (Trai) has mandated that a channel’s MRP must not exceed Rs 12 for it to be included in any bouquet. The aforementioned channels will not be part of any of Zeel’s 26 bouquets.

    “We are confident that post implementation of NTO 2.0, Zee channels will continue their growth momentum across markets and create higher value for the company,” said Zeel president – business for South Asia Rahul Johri.

    “The new pricing regime in 2019 brought in a major shift in the way television was consumed in India,” said Zeel chief revenue officer – affiliate sales Atul Das. “On one hand, it brought in transparency about MRP of channels, while on the other hand it offered freedom to consumers to select channels they wish to watch. With NTO 2.0, consumers will get even more flexibility in the selection of channels.”

    “We will continue to provide multiple bouquets to consumers across the country at different price points. Premium English channels like Zee Café and &flix will continue to be available in a separate bouquet. Each bouquet constitutes a mix of channels, including GEC, movies, news, music and lifestyle genres. We look forward to working with our Distribution Platform Operators (DPO) partners for a smooth transition,” he added.