Television

'NDTV is adequately funded to support its expansion' : Narayan Rao - NDTV Group CEO KVL

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2015/12/08/Narayan%20Rao.jpg?itok=q-MDIPps

 NDTV Ltd is on an expansion overdrive. In over a year, it has launched a slate of channels and moved beyond news into the lucrative Hindi general entertainment space.

The company has attracted NBC Universal to pump in $150 million for an effective indirect holding of 26 per cent stake in NDTV Networks Plc. Further capital infusion of $120 million has come from a clutch of investors.

NDTV's stake in the joint venture company with Malaysia-based Astro has increased from 20 per cent to 30 per cent. The company has also launched NDTV Arabia to tap customised channels in international markets.

Shepherding this growth has been NDTV Group CEO KVL Narayan Rao. In an interview with Indiantelevision.com's Sibabrata Das, Rao chalks out the company's expansion plans and the need for the group to consolidate its operations.

Excerpts:

Is NDTV floating a joint venture company with The Hindu Group to launch a Chennai city-centric channel?

We are setting up a joint venture company with The Hindu Group where we will hold 51 per cent. The Hindu Group will have the balance 49 per cent and the JV will launch MetroNation Chennai in the next 3-4 months. Hindu is a reputed brand at the regional and national level. So we decided to have a content and commercial relationship. It was a natural gravitation towards each other.

Will we see NDTV get into more such deals with print owners to tap regional markets?

Regional news is not something on our radar. Our area of expertise is in English and Hindi language news. Our strategy is to do city-centric channels.

Are the MetroNation channels being transferred to a subsidiary company called NDTV News Ltd?

The intent is there to have MetroNation as a subsidiarised company. Since it has separate business requirements, we have got a chief executive officer for it. A distinct entity will bring in greater efficiencies.

NDTV ended last fiscal with a consolidated loss of Rs 1.86 billion. When do we see a turnaround?

We are in the stage of incubating various businesses. We have seen exponential growth over the last one year and have expanded into the non-news segment as well.

We forayed into the Hindi general entertainment space with NDTV Imagine in January this year and have just launched Imagine Showbiz. We launched MetroNation in Delhi last year and it is doing well in terms of audience and reach. Now our focus will be to monetise this.

We have already obtained licence for the World Cinema channel and will be launching it in the next couple of months. MetroNation in Mumbai will probably come up in the next fiscal. We have our plate full.

Is NDTV spreading itself too thin?

There are opportunities and media companies are exploiting this. There is, however, an expectation from the marketplace to grow the topline which is putting unnecessary pressure on several media firms. Nobody is given a chance to consolidate. We need to structure that expansion and build the management bandwidth.

As for NDTV, we are adequately funded to support our expansion drives. We have have built the quality and ability to scale up. And in the news business, credibility is the only way to move forward.

'Regional news is not something on our radar. Our area of expertise is in English and Hindi language news. Our strategy is to do city-centric channels'

Will NDTV Networks Plc. raise money by listing on the Alternative Investment Market (AIM) of the London Stock Exchange?

NDTV Networks has raised $120 million from a clutch of investors including $20 million from Velocity Interactive Group (earlier called ComVentures). This is the holding company for the verticals including NDTV Imagine Ltd, NDTV Lifestyle, NDTV Convergence, Labs and NGEN Media Services (50 per cent). We have decided that it is better to build the businesses rather than go for an initial listing.

NBC Universal has the option to increase its stake from 26 per cent to 50 per cent. Will NDTV part with majority in its non-news company?

NBC Universal has put in $150 million to subscribe to shares of our Dutch subsidiary company which will give it an effective indirect holding of 26 per cent in NDTV Networks. We will never part with control. The other investors are in NDTV Networks.

Colors has made a strong debut. Will this affect the break even period of NDTV Imagine which reportedly has a funding support of $106 million?

NDTV Imagine is well on track and is growing steadily. The funding is adequate to take it to EBITDA positive stage. I can't talk about other GECs.

While the trend in an entertainment bouquet is to have a GEC and a Hindi movie channel, NDTV Imagine Ltd has launched a niche channel in Showbiz through a joint venture partner. What is the holding structure and potential for this channel?

NDTV Imagine Ltd will hold 51 per cent in the JV and the balance 49 per cent will be with Cinestar. It is a growing segment and has tremendous potential.

The launch of a Hindi movie channel is also in the pipeline. We are already in the process of acquiring movies. We are also going to be present in film production.

NDTV's consolidated revenue was at Rs 3.66 billion for FY'08. What contributed to this 31 per cent jump in turnover over the year-ago period?

NDTV 24X7 and NDTV Profit have seen strong growth. NDTV India's revenues, however, are not growing at the same pace because of the editorial positioning it has opted to take.

Isn't there a temptation to take NDTV India the tabloid route as many Hindi channels have successfully done to grow audiences?

Going the tabloid route is not our strength. That is not our USP. NDTV India is holding on to revenue because of quality. We believe in the long run, good news will prevail and more audiences will come in.

How is the joint venture with Malaysia-based Astro faring?

The venture has already launched channels in Indonesia and Malaysia. We were given 20 per cent stake against a fee that we were to charge Astro for our services. Our stake in the joint venture is going up to 30 per cent.

NDTV Emerging Markets is a subsidiary company which launched NDTV Arabia. Are we going to see more such customised channels being launched in other countries through this company?

NDTV Arabia will now break into local news bands. It is our first venture into the Middle East and Africa as a customised channel. Yes, NDTV Emerging Markets will launch more such channels in other international markets to provide local news content. It is part of our international expansion plan to reach out to new target audiences.
NBC Universal's investment of $150 million for 26 per cent stake in NDTV's Dutch subsidiary company puts the valuation at Rs 24.2 billion. The market cap of NDTV Ltd, which includes the news channels as well, was marginally higher at Rs 24.5 bn (July-end). Since the true value is not captured, is this the reason why NDTV Ltd is planning to de-merge the company into "news related businesses" and "non news businesses?"

The aim is to unlock shareholder value and to promote the focused growth of our various businesses. Consultants are working on this and we will evaluate various options after receiving their feedback.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/20/Amazon_NEW.jpg?itok=KI9MRqO5
Amazon most advertised brand in BARC week 41

The Broadcast Audience Research Council (BARC) India has released its data for last week’s top advertisers and brands between 6-12 October 2018. The data is a reflection of top 10 advertiser and brands across genre on Indian television (U+R) : 2+ Individuals.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/20/Marathi_BARC.jpg?itok=DUC_6K8L
No changes in Bhojpuri, Kannada, Marathi segments in BARC week 41

In the Bengali space, Jalsha Movies and Colors Bangla swapped their third and fourth positions in BARC data week 41. No changes were observed in the Bhojpuri, Kannada and Marathi segments. Moreover, Gemini TV and Zee Telugu swapped their second and third positions in the Telugu sector. Flowers TV...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/20/Anil%20Ambani.jpg?itok=4eNnBDRM
Anil Ambani’s Reliance sues NDTV for Rs 10,000 cr for Rafale coverage

NDTV has been sued for Rs 10,000 crore by Anil Ambani's Reliance Group in an Ahmedabad court for its reportage on the Rafale fighter jet deal. The lawsuit is filed against NDTV's weekly show, Truth vs Hype, which aired on 29 September.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/20/Arnab-Goswami.jpg?itok=HTFNEsfj
Republic TV leads English news genre in BARC week 41

Republic TV continued to lead the English news genre as per All India BARC data week 41. No changes were noticed this week in the English business news genre. Aaj Tak maintained its lead across every Hindi news genre for yet another week. Hindi news urban genre remained unchanged. Zee News dropped...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/20/BARC.jpg?itok=z6etjpSh
Star Utsav bags leadership in GEC (U+R) in BARC week 41

Star Utsav and Zee Anmol swapped their first and second positions in the Hindi (U+R) genre in Broadcast Audience Research Council (BARC) data for week 41 of 2018. Star Plus and Big Magic exchanged their eighth and ninth positions in the rural market. Star Bharat and Sony Sab swapped their fifth and...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/f1.jpg?itok=bHf3HxgX
Sony Pictures Networks India (SPN) extends exclusive television and digital rights partnership with ABB FIA Formula E championship

Sony Pictures Network India (SPN) will continue to broadcast each round of the ABB FIA Formula E Championship for a further two seasons across the Indian sub-continent - including India, Pakistan, Sri Lanka and Bangladesh.

Television TV Channels Sports
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/james.jpg?itok=kJ15Bp4y
James Gough’s innovative idea will be incubated with the intent to prototype it at Formula 1®’s Media & Technology Centre

Formula 1® Managing Director of Motorsports, Ross Brawn, and Mercedes-AMG Petronas Motorsport Driver, Lewis Hamilton, today crowned James Gough the winner of this year’s USD $50,000 F1® Innovation Prize at the FORMULA 1 PIRELLI 2018 UNITED STATES GRAND PRIX in Austin.

Television TV Channels Sports
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/flix.jpg?itok=OGsLbI9R
FLIX FIRST SCREENING: &flix makes October spookier with the multi-city theatrical premiere of Goosebumps 2: Haunted Halloween

&flix, the all-new destination for the most-awaited Hollywood blockbusters, brings the much-anticipated sequel Goosebumps 2: Haunted Halloween on Thursday, October 25

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/ganga.jpg?itok=rFc6bFbm
BIG Ganga Goes All Out to Delight Its Audience This Festive Season, Launches Engrossing Range of Shows

With the festive season right around the corner, BIG Ganga, the number one Bhojpuri channel in the Hindi heartland

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories