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/2017/03/29/go%20%281%29_1.jpg?itok=7-Er07kN
GoQuest Media to globally distribute Cinema Vision content

GoQuest Media Ventures, a distributor of international content to television channels and digital platforms, has joined hands with Cinema Vision India (CVI) promoted by Siddharth Kak to facilitate distribution of content globally.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/29/kabbdi%20%281%29.jpg?itok=BcYw-qV-
Pro Kabaddi: Mashal Sports invites tenders to own & manage new team

Mashal Sports, in which Star Sports owns 74% stake, has, pursuant to the Invitation for Expression of Interest dated 29 March 29, has called for expressions of interest (“EOI”) to be submitted by eligible persons, fulfilling the criteria provided for in the Invitation, who wish to participate in a...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/29/Arun-puri.jpg?itok=89_3x-2M
India Today Online is TVTN's wholly-owned subsidiary now

MUMBAI: India Today Online Private Limited (ITOPL) has now become a wholly-owned subsidiary of TV Today Network Ltd. India Today Online, on 28 March 2017, issued and allotted 1,99,20,000 equity shares of Rs. 10 each to Living Media India Limited (LMIL) which constitutes 21.01% of the paid-up share...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/29/FREEDISH-STB.jpg?itok=l__8ZZuS
FreeDish iCAS STB: Modern Comm, Velankani, BGM, KMTS & Millennium OEMs shortlisted

NEW DELHI: Five companies including two from Delhi have been shortlisted as original equipment manufacturers for set-top boxes for Doordarshan’s FreeDish on the Indian Conditional Addressable System (iCAS). This follows the opening of e-tenders on 9 December 2016 after which these OEMs were found...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/barck%20%281%29.jpg?itok=eWIvgkHj
BARC India formally sets up independent council to probe viewership malpractices complaints

BARC India has set up an independent disciplinary council to further strengthen transparency and credibility of its measurement system.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/Jim-Gianopulos.jpg?itok=N-QHfz2Z
Viacom names Gianopulos CEO of Paramount Pictures

MUMBAI: Viacom Inc. has announced the appointment of Jim Gianopulos as the chairman and chief executive officer of Paramount Pictures, effective 3 April, 2017. Gianopulos will report directly to Viacom president and CEO Bob Bakish.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/indo-vietnam.jpg?itok=rQDtgDJx
India, Vietnam agree on greater collaboration between pubcasters

NEW DELHI: Information and Broadcasting Minister M Venkaiah Naidu has said India would extend all possible support to promote exchange programmes between public broadcasters of the India and Vietnam in content creation, screening and distribution of films. During a meeting with a Vietnamese...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/DD-Kashir-V-naidu.jpg?itok=amiTS5gh
DD Kashir packaging agency tenders floated

NEW DELHI: Doordarshan has floated a tender for selecting an agency for channel packaging work for DD Kashir. The Description of task, e-tender submission format and procedure is provided in the Bid document available on the DD website and two e-tendering websites. The pre-bid meeting in this...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/28/Times-Now-800x800.jpg?itok=Ckdthpen
Times Now will be globally 'regional', non-mirror HD by next quarter

MUMBAI: Success does not end at leadership, it begins! With an aim to create value and make a difference, he is a man on a mission. He quit News X in November 2016 to fill the the big shoes of Arnab Goswami. Known to be an insightful, incisive journalist, Rahul Shivshankar joined Times Now on 15...

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories