Television

New tariff order helped ZEEL's strong domestic subscription revenue growth in Q1 FY20

Domestic subscription revenue for the overall year to grow in mid-twenties.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/07/31/zeew.jpg?itok=m51-IrDZ

MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) experienced strong growth in domestic subscription revenue in the first quarter of FY 2020 where the new tariff order played an important role. The leading broadcaster has guided for domestic subscription revenue for the overall year to grow in mid-twenties.

“The implementation of the new tariff order has allowed us to price our channels in line with their popularity, thereby leading to a sharp improvement in monetisation. Additionally, uniformity in pricing across platforms and increased transparency have led to a step jump in this quarter’s subscription revenue growth,” ZEEL MD and CEO Punit Goenka said in an earnings call after Q1 results.

The broadcaster also witnessed sharp growth in subscription revenue in the southern market too. Apart from the digitisation of the Tamil market, the new tariff order also played an important role here.

Goenka, talking about the growth in the Southern market, mentioned that either ZEEL channels were free in certain markets or their pricing was not proportionate with their viewership share while the new pricing regime gave them the opportunity to re-price content.  He pointed out that the tariff has been frozen since the last 16 years and no price change was done since then for any of the channels after launch.

“Despite having built significant viewership over the last several years, our channels were really not priced in line with their popularity. Under the old tariff order, it would have been a long journey but the new tariff order gave us a chance to reset this pricing. So, that has allowed us to significantly improve our monetisation,” ZEEL corporate strategy and investor relations head Bijal Shah commented on the overall subscription growth.

“And on top of this, in this tariff order, discrimination between the platforms is not possible, which has also led to an improvement in subscription revenue growth. So, this is much more on expected lines. In fact, for the last 2-2.5 years, we have been guiding that tariff order will allow us to properly monetise the viewership which we have, and we are seeing that evolving the way we had envisaged,” he added.

However, the broadcaster did not outline any clear guidance in terms of advertising growth but Goenka did mention that ZEEL would beat the industry growth.

Goenka said this fiscal year also will not be very high on free cash flow generation despite slight improvement. But next year onwards, there will be a lot more cash conversion from the company’s bottom-line to cash with an actual ramp-up in free cash flows.

“It is the first quarter right now, so a bit difficult to give you an exact amount, but total working capital investment in FY20 will be in the range of Rs 500-700 crore, that is the kind of increase we will see in total in working capital in full year FY20. It could be closer to the lower-end of the range but we just want to keep some buffer for ourselves right now,” Shah noted.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/ptc.jpg?itok=NH8pQ4GR
PTC Network Gave Wings To A New Era With World’s First Ever Online Award Ceremony: PTC Punjabi Film Awards 2020

PTC Network actually created history by converting a regular awards show into a virtual one and beating all odds to put up a fantastic gala roller coaster ride of a ceremony held on virtual stage with hosts joining in from different cities and audience watching with open mouth, wondering how was...

Television TV Shows Awards
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/spsn.jpg?itok=Liqslczm
Sony SIX channels to air West Indies Tour of England 2020 from 8 July

KOLKATA: Sony Pictures Sports Network (SPSN)  announces the return of LIVE cricket action after 120+ days, with the West Indies Tour of England 2020. As cricket finally makes a comeback with West Indies taking on England, viewers can watch the series unfold live and exclusive on SONY SIX channels...

Television TV Channels Sports
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/film.jpg?itok=0YoQXCzi
Film, TV, digital series shoots to begin in Madhya Pradesh

MUMBAI: Film, television and digital series shooting can resume in Madhya Pradesh after complying with measures in place to contain the coronavirus outbreak, said an advisory from the state's tourism board. The board's additional managing director Sonia Meena said a set of rules has been prepared...

Television Production House Fiction
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/gec.jpg?itok=gx0KHFo7
Colors to air fresh episodes of key shows from tonight

MUMBAI:  Hindi GEC Colors has announced its content resumption strategy by presenting fresh episodes of marquee shows. Soon after Khatron Ke Khiladi last week, the channel will air new episodes of Shakti Astitva Ke Ehsaas Kii and Barrister Babu starting 6 July at 8 pm and 8.30 pm respectively....

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/zeebi.jpg?itok=DiQpT6wY
Get ready to soak in Rain & Romance as ZEE Biskope rejoices Sawan with unique film festivals

NEW DELHI: The month of rain and romance brings in joyful festivities& celebrations. It’s that time of the year when the symphony of raindrops landing on the parched leaves evokes poetic romance while we sip a piping hot tea enjoying the monsoon musings. As an occasion, Sawan has been...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/zee.jpg?itok=KBK5EIK_
Stay Vigil And Beware Of The Monsters Around You As Zee Café Brings ‘Penny Dreadful: City Of Angels’

You have seen her manipulative and cunning side as Margaery Tyrell in Game Of Thrones, now watch her raise hell, quite literally, in ‘Penny Dreadful: City Of Angels.’ Natalie Dormer returns, this time deadlier than ever before as fierce demoness Magda in this magnetic and chilling tale that will...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/cart.jpg?itok=iUvGyrr3
New-gen kids prefer OTT platforms to kids’ TV channels

Back in the ’90s or early 2000s, kids had control over TV remotes during their vacation. Many kids would not have finished their meals without Mickey Mouse or Tom and Jerry on the screen which later became Pokemon and The Mask as well.

Television TV Channels Kids
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/tv.jpg?itok=FLjVZbaj
5 million cable TV subscribers cut the cord during Covid2019

The lockdown and its lack of content on television seem to have had an impact on viewers. About 4.5 to five million subscribers have gotten off TV and DTH services since lockdown started. Additionally, several others have downgraded their subscription packages.

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/Siddharth%20Kumar%20Tewary.jpg?itok=63Ts2TFK
Rapid fire questions with Swastik Productions' Siddharth Kumar Tewary

MUMBAI: Story-teller, director and producer Siddharth Kumar Tewary is  now touted as the king of mythology (which he calls 'history') on television with shows like  Mahabharata, Suryaputra Karn, Shani, Mahakali, RadhaKrishn, Chandragupta Maurya and internationally famous Porus. In a virtual...

Television Production House Film Production

Sign up for our Newsletter

subscribe for latest stories

* indicates required