Television

CNN-IBN to turn pay, likely to be priced Rs 5

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MUMBAI: CNN-IBN, the English general news channel from the TV18 stable, is turning pay and is tentatively priced at Rs 5.

Global Broadcast News (GBN), the company which owns and operates CNN-IBN, has entered into an MoU with Zee Turner Ltd. for distributing the channel. The MoU is valid till 31 March 2007.
“We have entered into an MoU with Zee Turner pursuant to which we will become a pay channel,” GBN said in its draft red herring prospectus filed with the Securities and Exchange Board of India (SEBI).

Though the price quoted in the MoU is Rs 5 a month per subscriber, this could change depending on the market situation. The channel may go pay in October, a source in the company says.

CNN-IBN will be distributed by Zee Turner as a stand-alone channel. “Zee Turner Ltd has agreed that it shall endeavour to collect the subscription charges from the subscribers on the basis of the agreement signed with them and remit the actual collected amount within 60 days of last day of collection to the company,” GBN said in its IPO (initial public offering) document. Zee Turner will be entitled to a fee of 20 per cent on the subscription charges on collection.

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