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The CNN deal, likely to be announced soon when formally inked,
will enable the proposed English language general news channel iBN
to go in for co-branding with the American news broadcaster on the
lines of CNBC TV18 business channel.
Apart from co-branding, iBN will have access to CNN's global content
and presence. What is not clear at this juncture is whether this
deal would also hold good for other general news channels, apart
from iBN, that Global Broadcast News Pvt Ltd proposes to launch
in Indian languages.
Under the terms of agreements, being hammered into a final shape
in Delhi over the last few days, iBN will pay a mutually agreed
upon royalty to CNN for using the American news brand, started by
Ted Turner few decades back.
However, CNN will not have any equity stake and/or editorial control
in the proposed English news channel, which is wholly promoted by
Indians at present, to facilitate easy regulatory clearances.
The Indian government last week announced stringent media norms
to regulate TV content and ensure foreign owned companies do not
hold beyond 26 per cent stake in news channels uplinking from the
country.
The publicly traded Television Eighteen group, which recently underwent
a complex restructuring to comply with government norms to continue
uplinking CNBC TV18 channel from India, was unavailable for comments.
Clarifications sought from CNN's parent company via an email, sent
yesterday, elicited no response till the time of writing this report.
Over the last 18 months, Indian broadcast industry has been abuzz
with rumours of CNN flirting with Indian news broadcasters, including
the Prannoy Roy promoted NDTV LTD, to strike up a local deal that
would enable it to tap the growing Indian news market in a better
fashion.
According to broadcast industry estimates the Indian news market
is presently worth Rs 5 billion. Three years back, the segment was
pegged at RS 1 billion.
(Rs
45.07= 1USD)
Also read:
TV18's
holding company to offer 10% equity to public
TV18 announces
holding company TV18 Network LTD
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