Television

Rebuilding Zee News Ltd as a TV news powerhouse

MUMBAI: Zee News Ltd (ZNL) will work out an aggressive growth plan to achieve a revenue of Rs 5 billion within five years as it readies to give up its highly successful regional general entertainment channels to group company Zee Entertainment Enterprises Ltd (Zeel).


The surgery can be very painful. ZNL‘s dependence on the GECs is apparent with the regional entertainment business contributing Rs 3.4 billion out of the company‘s FY‘09 turnover of Rs 5.2 billion.


For the first half of this fiscal, the figures are no different. The GECs accounted for Rs 1.87 billion in a total revenue of Rs 2.98 billion. "We need to make up for the revenue and bottomline loss. We are coming out with a long term growth plan," says ZNL chief executive officer Barun Das.


Hiding under the protection of the regional GECs, ZNL will now have the freedom to build itself as a TV news powerhouse. "We were not drawing synergy from each other. The GECs were getting prime focus. We can now build our own destiny," says a senior executive at ZNL.


ZNL gets to keep Zee Tamil and Zee Punjabi while shunting out a major part of its Rs 2 billion debt to Zeel. Zee Tamil, launched as a GEC, will limit its losses as it predominantly becomes a news channel.


The trimmed-down Zee News Ltd. will still have the largest news footprint, beating rivals such as Network18 Group, TV Today, NDTV and Star News. That, however, does not reflect on the revenue front as Zee News, the flagship channel, is not the leader in the Hindi news genre. The news business fetched a revenue of Rs 1.8 billion for the fiscal ended March 2009 and Rs 1.1 billion during the first half of FY‘10.


ZNL will have to continue incubating Zee 24 Gantalu (Telugu news channel) and Zee News UP. Zee News (Hindi general news channel), Zee Business (Hindi business news channel) and Zee Taas (Marathi) are profitable but scaling up will be the main focus. The two other channels the company is involved in is 24 Ghante (Bengali news channel where it has a joint venture stake) and Zee 24 Ghante Chhattisgarh (franchisee model).


ZNL will have to build multiple growth engines down the road. Crucial would be the English news channel launch, a space that is already occupied with some authority by Times Now, CNN IBN and NDTV 24x7.


In the new order where ZNL gets to exist as a pure play news organisation, the plan will be to launch city-centric and regional channels. The incremental cost of these channels will be low and ZNL could discover joint venture partners down the road. The company also could scale up its franchisee model, though it is not an easy path to travel far and wide.


The expansion route through these channel launches, however, may not be viable at this stage as carriage fee costs have become exorbitant.


Existing ZNL investors, though, need not bother as they will get Zeel shares in line with the share-swap ratio that will be announced by 29-30 October. The ZNL scrip, in fact, is expected to climb temporarily due to this. The task cut out for the management is to sustain this momentum as ZNL‘s market cap is set for a major overhaul after the exit of the entertainment channels.

Amid this mammoth task of building a news empire, guess what? The game can change quickly if ZNL gets a strategic investor.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/star-bharat.jpg?itok=kT6YtkU0
Star Bharat leads Hindi GEC (U+R) in week 2 of BARC ratings

MUMBAI: Star Bharat emerged as the leader in the Hindi GEC (U+R) genre dethroning Zee Anmol according to Broadcast Audience Research Council (BARC) all India data for week 2 of 2018.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/aaj-tak-barc.jpg?itok=4sc6BHYP
BARC week 2: Aaj Tak leads Hindi News in all three markets

MUMBAI: Republic TV continues its leading streak in the second week of the year as well in BARC All India ratings. News Nation stays in the top five chart in week 2 of 2018 in Hindi News Rural market. Aaj Tak tops the chart again in Hindi News Urban market.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/karan-bajaj.jpg?itok=jxlg_oWY
Dsport acquires India rights of tri-nation tournament in SL

Discovery’s sports channel Dsport has acquired the exclusive India broadcast rights of Nidahas Trophy 2018, a tri-nation international T20 tournament involving India, Sri Lanka and Bangladesh. The transaction was facilitated by Lagardère Sports, the global marketing consultant of Sri Lanka Cricket...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/adity.jpg?itok=9fFHR7SG
Pittie Group launches news portal

Pittie Group has launched LatestLY its new portal for trending stories across categories like world news, politics, sports, entertainment, lifestyle,technology, automobile etc. It is being developed as the go-to platform for anybody wanting a complete understanding of trending stories.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/biwi.jpg?itok=P3OOGgZH
Catch Rekha's stellar performance in 'Biwi Ho Toh Aisi' on Sony MAX2

MUMBAI: Rekha’s fans are in for a sweet surprise this week as India’s iconic Hindi movie channel from Sony Pictures Networks, Sony MAX2 is all set to air classic movie Biwi Ho Toh Aisi. A light-hearted family drama stars Bollywood legends Farooq Sheikh and Rekha in lead roles and marks the debut...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/pv.jpg?itok=11OhTSzk
The seasonal show saga on Indian GECs

MUMBAI: Daily soap operas, with an infinite number of episodes, is the unique feature of India’s TV entertainment offering. From the era of a single national broadcaster to today where you can pick from a plethora of general entertainment channels (GECs), times have surely changed. What is slowly...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/star.jpg?itok=XqQ1JaZk
Star ushers in IPL's new era with a bang

Star India is all set to reinvent the Vivo Indian Premier League (IPL) 2018 by increasing fan-engagement levels and bringing the sporting spectacle even closer to cricket fans across the country. The broadcaster’s press conference in Delhi today started with Sophia, a robot, in conversation with...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/punit.jpg?itok=QMjjRK9k
Zeel numbers up on higher ad revenue in third quarter

The Subhash Chandra led Indian television network Zee Entertainment Enterprises Limited reported 11.5 percent and 28.3 percent increase in consolidated total revenue and profit after tax (PAT) respectively for the quarter ended 31 December 2017 (Q3-18, quarter under review) as compared to the...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/baba_0.jpg?itok=4dsXrFZQ
Ramdev wants telecast fees waived off for devotional channels

Baba Ramdev today took a shot at the government for imposing high tax on telecasting devotional TV channels.

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories