Television

Analysis: Will Zee get extra out of ETC?

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/02/24/etc.jpg?itok=JTLQB4Li

More frames are being added to the ever-expanding Zee picture. Zee Telefilms announced today that it had signed a memorandum of understanding with ETC Networks to buy out the major chunk of the stake of promoters Yogesh Radhakrishnan, Yogesh Shah and Jagjit Singh Kohli in the company.

For a relatively small sum - Rs 178.40 million to be exact for 5.66 million equity shares representing 48.38 per cent of ETC‘s paid up share capital - chairman Subhash Chandra and group broadcast CEO Sandeep Goyal have added another two channels to the Zee bouquet.

Goyal proposes to mop up an additional Rs 70 million worth of shares through an open offer to etc shareholders and Zee Telefilms is likely to end up controlling 56 per cent of the ETC at the end of it all.

If this deal goes through it will be a follow-through of the Zee Turner JV that was initialled at the end of last year which added English movie channel HBO, CNN and Cartoon Network to the Zee bouquet.

It indicates that Zee Telefilms promoter Subhash Chandra is extremely serious about getting in a strategic partner. He is building an armoury which makes his Zee TV group look attractive to the two media groups he is talking to to become his strategic partner. The market has been abuzz about this possibility ever since Chandra spoke about it at the Merrill Lynch investment seminar in the southern state of Kerala earlier this month. This has led to the runup in its share price, says an investment analyst.

The immediate advantage of course is what the two channels add to the Zee platform. In the music channel segment where Zee Music was struggling, its position improves as compared to rivals B4U Music, MTV, Channel V. Etc, predominantly a music channel, has run very successfully by operating on the model of extremely low overheads and by offering space on the channel for music companies to air promos.

As far as etc Punjabi goes, it is the current leader in its language segment largely because of the exclusive rights it holds for the twice-daily airing of the Gurbani - verses from the Holy Book of the Sikh saints broadcast from the Golden Temple, Sikhism‘s holiest shrine. Alpha Punjabi too has some cachet with audiences thanks to its own telecast of local Gurbanis.

What Goyal will have to work through is how to make sure that the four channels effectively complement rather than cannibalise each other.

Asked to comment on the new deal that Zee was in the process of stitching together, a financial analyst said it was a reasonable value proposition. There is however, a greater value add in the four channels being morphed into two channels - something like an Alpha etc Punjabi for example, was the analyst‘s view.

The key issue is still whether a foreign partner would finally come on board and whether there would be a visible turnaround in the fortunes of the main channel Zee TV, the analyst said. "While these deals are fine, we would also like to see an improvement in Zee TV‘s programming hold over viewers," she says.

Coming back to the deal itself, what is likely to take place is a major rationalisation exercise which will probably see significant staff offload.

There is another possibility which has not got much attention though. The two new channels present a value add to the Zee bouquet in the kind of subscriber package that can be offered. This is relevant in the light of the increasing friction between broadcasters and the cable industry over both higher pay subscription rates and the demand that declared connectivity be significantly increased.

Zee is steadily increasing the bandwidth it occupies on the available prime band in cable TV networks and more channels offer it a greater manoevering capacity as to the subscription packages that it can offer. That the channels are both free to air adds to the possibility of them getting carriage and a favourable band on cable TV systems.

For Zee, the further down on the cable feed the channels of rival networks like Star and Sony are pushed the better. It also needs mention that the etc channels will now possibly get carriage on the Hinduja-promoted InCable Network, an absolute no-no at the moment. This is because the three ETC promoters Kohli, Radhakrishnan and Shah set up their network after breaking away from IN Cable.

For the etc trio, the cash injection will come in handy. The network has been in need of a cash injection to achieve the vision each of them has planned for it. The etc board meeting on 25 February is all but a formality, it appears from the confident manner that Goyal has been speaking about the transaction.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/17/greengold.jpg?itok=nKMJWQ6p
Green Gold’s Golden Mumbai launch

MUMBAI: Green Gold Animation is all set to hit the green running with its new offshoot Golden Robot. The Rajiv Chilaka-run animation outfit has been wowing everyone with its deals for animation series with both Netflix and Amazon Prime.  But the occasion this time was the celebration of the launch...

Television Production House Film Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/16/Gujarat_elections.jpg?itok=_UNo5uA8
Gujarat elections boost news channel ratings as Republic continues to lead English News

BENGALURU: Rahul Gandhi’s shenanigans and Narendra Modi’s sudden and unexpected belligerence at rallies leading up to the Gujarat state assembly elections have resulted in bolstering sagging news viewership, especially for the English news genre. According to Broadcast Audience Research Council of...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/sunny-leoae.jpg?itok=3SZqrF40
Sunny Leone in Discovery JEET’s show Man Vs Wild

Sunny Leone will be displaying her adventurous side as host of the mega-popular survival series Man Vs. Wild. The iconic series will telecast in Hindi on the soon-to-be-launched GEC Discovery JEET. The new GEC will premiere in the second week of February 2018 and the series will feature the...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/sm.jpg?itok=gUhILkq8
Times Now appoints Sujeet Mishra as marketing head

Times Network, part of India’s media conglomerate, The Times Group today announced the appointment of Sujeet Mishra as head of marketing, Times Now.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/sony-bbc_1.jpg?itok=mQuiQxIO
Experience space with BBC's new VR experience

The BBC is giving you a chance fly. Home - A VR Spacewalk is an interactive virtual reality (VR) experience launched today for the HTC Vive and the Oculus Rift, and is available to download for free via the Steam Store and the Oculus Store.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/bbc_0.jpg?itok=jTEnctw5
Sony BBC Earth presents the Best of 2017

Sony BBC Earth revisits some of its most popular episodes of the best shows in a special programming line-up titled Best of 2017 starting 18 December 2017, every night at 7 pm and 11 pm.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/shemaroo.jpg?itok=JLK5kQw2
Increased revenue from traditional media boosts Shemaroo numbers

Integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 18.3 percent higher year-on-year (y-o-y) consolidated total revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18, the quarter under review) stood at Rs 1,345.7 million as compared with Rs 1,138.6 million in...

Television Production House Film Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/mur.jpg?itok=Hql64_2L
21st CF spins-off into new live news & sports co Fox

MUMBAI: After the blockbuster acquisition of 21st Century Fox by The Walt Disney Company, the former has announced that it will spinoff into a new brand Fox’ that will seek to replicate its own success in the newly focussed verticals of live news and sports brands. Using fiscal 2017 as a base, the...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/uday_0.jpg?itok=t8VAurqw
With Star India, Disney emerges as India's largest M&E firm

MUMBAI: Unlike the US, where the merger of The Walt Disney Co and 21st Century Fox’s entertainment assets is between two near equals, the scenario in India is totally different. 21st Century Fox’s India venture Star India is a $1.7 billion dollar media and entertainment behemoth while Disney India...

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories