MxMIndia

Tag: ETV

  • As the first of the five regional ETV entertainment channels adopt Colors on March 22, we speak with the Viacom18 Group CEO

    Building on Colors. Interview with Sudhanshu Vats

     

    It may have been more of a coincidence. A day before the first day of the festival of colours, Viacom18 announced its five regional entertainment channels would drop the ETV branding and adopt Colors. The ETV GECs, owned by Prism TV Private Limited and part of the Viacom18 networks, has operations in the Hindi entertainment, youth, children, English entertainment and regional clusters.

     

    Speaking to MxMIndia, hours after making the announcement, Viacom18 Group CEO Sudhanshu Vats said the exercise helps in building the Colors franchise. Colors, as a brand, has become the cultural touchstone for millions of Indians across the world, he said.

     

    Meanwhile, Colors Marathi will be relaunched on Sunday, March 22 starting 6:30 pm with MICTA awards (the Marathi film and theatre industry awards like the IIFA) and two new shows starting March 23 – Majhe Hoshil Ka and Sakhi. Colors Oriya will go live on April 1 while the Bangla channel will happen on April 12. Colors Kannada and Gujarati will go live on April 19.

     

    Excerpt from an interview.

     

    The rebranding of the entertainment bouquet with the Colors prefix may now appear to be a no-brainer. But for how long has this been in the works?

    Yes, Colors’ foray into other general entertainment spaces or language general entertainment is natural. From a strategic point of view, it expands the footprint of Colors as a brand. Particularly in general entertainment, we are a multi-brand media network. So, whether it is Nick in kids or MTV in youth and Colors in general entertainment, the natural extension of all our marquee brands into subsequent languages is a very natural strategic move. I think ETV as a brand enjoyed legacy, because it was the first regional brand, it had history and huge loyalty to some extent. But one of the things we noticed was that it had also aged a little and was not contemporary enough. If we juxtapose ETV with Colors, Colors, as a brand, stands out for its young, modern, urban, contemporary and innovative nature. Therefore, from a consumer angle as well as strategic point of view, it was almost natural that you move as we build it.

     

    So just as youth brands are under MTV and for kids, there’s Nick, couldn’t we have had separate brands for the regional and Hindi GECs?

    It all depends on how you look at it as a segment. If you look at the genre as general entertainment and within that regional and language segmentation, then may be one brand for general entertainment, which is indeed Colors, does make sense. And, therefore, it has the capacity to have that scale. While Hindi is of course predominant in India, without doubt, at this movement at least, in viewership too, regional is also catching up the fast. To be honest, the answer is yes one could have had a dedicated brand. At the same time, could you have extension of your GE brand into other GE spaces? The answer is yes again. To me from some scale and some brand halo and Synergy point of view, may be it makes more sense to sort of…

     

    The Colors as channel we know it is not going to be rechristened?Or suffixed Colors Hindi?

    No.

     

    Colors, the Hindi GEC brand, is bold, young, urban breaks barriers and, well, a lot of money is spent on its programming and marketing. The expectation will be the same from the language GECs? And if not fulfilled, it could have a slightly negative rub-off on the Hindi GEC?

    We will of course try and play out the same brand philosophy and brand mantra. That’s the thinking behind it.

     

    In terms of programming are you looking at a significant change from what’s there right now? Or will we see a significant leap in look, feel and content?

    I’ll answer this in two parts. TV18 expressed its interest to acquire ETV in 2011-2012. Basically, post-TV18’s acquisition of ETV, we’ve been associated with them from a synergy point of view. What we’ve done across these regional Prism channels is let the Prism team look at some of the things they can pick up. To give you some of the examples, we’ve already attempted Big Brother in Bangla and Kannada. In Kannada, the Prism team has looked at ‘Dancing with the stars’ which is ‘Jhalak Dikhla Jaa’. It is in its second season and has been very successful and is already the No 1 show this year. We’ve also looked at few shows that are about ideas from Viacom18. Let me give you an example of another show called ‘Indian’ we ran on ETV Kannada. It’s Roadies meets Bigg Boss! There are also programming shows like Balika Vadhu, which are remade, Madhubala, Uttaran, in regional forms. From a programming perspective, it’s a two-stage journey. Journey 1 is already on from synergies and it has helped uplift the viewership of these channels. And #2, as we launch with the rebranded Colors, you’ll see considerable change in programming.

     

    Will there be any change in the Hindi GEC?

    Colors continues its journey. We’re a strong No 2 as you know and we’ll continue to work on that. That’s a completely independent piece.

     

    The launch of &TV means some tough competition for Colors, right?

    Early days. We’ve It’s been positioned as an urban channel with some amount of social messaging, reasonably high decibel and expansive non-fiction. So, the zone you seem to see it is in Colors. The direct competition could be more with Colors. It makes a lot of sense if you step into Zee’s boots. Zee enjoys a huge legacy. They enjoy a tremendous first-mover advantage, clearly in distribution. I think they’ll be ahead of Star, in sheer distribution. Because of that, I can say that they are slightly less urban.

     

    Would you at any time look at a mid-market GEC?

    We keep evaluating from time to time. There are two ways of looking at it. One is that may be there is more room for more GECs in India and that could be a hypothesis. The second is that people have tried and not many have succeeded. You had others, headed by people who had reasonable experience. Off late also, Zee’s Zindagi made a very different attempt. Sony Pal, which is almost like a full-fledged GEC, wasn’t very successful. We’ll see what comes there. There is one school of thought that there are four or five GECs which have established themselves and may be as a GEC there is room for just about this much. The second school of thought is that there is more room. To answer your question, yes we are looking at it, evaluating. We don’t have anything firm at this moment.

     

    Surely, more is in the offing. We hear about an English GEC. Any indicators of the directions you are looking at?

    My answer on this one is also similar. I don’t want to say something we’re not yet firm at. Basically, you’ll be seeing more offerings. I can’t share them convincingly till I don’t know them well. But, yes, we’ll continue to deepen and strengthen our presence in the genres we’re playing in.

     

  • The Marathi, Gujarati, Bengali, Kannada and Oriya of the Viacom18 stable will drop the ETV and rebranded with the Colors prefix

    Viacom18 adds Colors to Regionals

     

    By A Correspondent

     

    A day before the auspicious festival of Holi set in, Viacom18 made announcement that reflects the plans the entertainment network has for its regionals: it has announced the rebranding of five ETV-prefixed regional general entertainment channels in Marathi, Gujarati, Kannada, Bengali and Oriya. These will now be prefixed with Colors which has been until now the preserve of the Hindi GEC alone.

     

    The ETC GECs are owned by Prism TV Private Limited and are a part of the Viacom18 networks which has operations in the Hindi entertainment, youth, children, English entertainment and regional clusters.

     

    Sudhanshu Vats

    On making the regional foray, Sudhanshu Vats, Group CEO Viacom18 Media Pvt. Ltd. said, “59 per cent of the country converses in regional languages as their primary language of choice. Today regional TV channels command the second largest viewership in India. The expansion fuels our growth strategy in building the Colors franchise, a brand that has become the cultural touchstone for millions of Indians across the world. The move will help us foray into key regional markets as we nurture and monetise the bouquet across platforms.”

     

    All of it is subject to regulatory approvals. Viacom Inc. through its subsidiary Nick Asia will acquire a 50 per cent interest in the five regional general entertainment channels, while TV18 will continue to own the remaining 50 per cent.

     

    On the communication approach to socialise the rebranding, he indicated that the “revelation of the new brand identity of each of the five regional channels has been staggered across a period of two months starting March 3, 2015. It is scheduled to coincide with regional festivals that mark new beginnings. 360-degree marketing and communication campaigns encompassing TV, cinema, cable, on-ground, radio, outdoor as well as digital platforms, customised to individual regional markets, will amplify the change.” Colors Marathi, for instance, will take on the rebranded avatar from March 22 given that it coincides with Gudi Padwa.

     

    Campaigns for each regional brand will leverage the distinct fervour of the corresponding state or region through region specific events and / or on-ground activations involving popular local influencers. Each high-decibel campaign will run for approximately four to five weeks. According to the grapevine, an approximate amount of Rs 50-60 crore will be sent on the marketing and activation offensive to unveil the rebranding. An additional expense will also be incurred on programming initiatives that will coincide with the blitz.

     

    Meanwhile, Mr Vats told MxMIndia that the network is keen to grow each of the clusters, though he did not reveal when more channels would be launched in each of the five clusters.

     

    A senior media planner MxMIndia spoke with told us on conditions of anonymity, that the Colors branding was a logical way to go for the regional channels. It’s a win-win for all, because Colors is already an established franchise and will have a positive rub-off given the Hindi GEC enjoys leadership status and is ranked second in the entertainment space.

     

  • Aegis Media's Vizeum India has announced their appointment as media AoR for Prism TV Private Limited to handle the 5 ETV regional channels namely ETV Marathi, Bangla, Kannada, Gujarati & Oriya

    ETV Network ropes in Vizeum to handle media

    By A Correspondent

     

    Aegis Media’s Vizeum India has announced their appointment as media AoR for Prism TV Private Limited to handle the 5 ETV regional channels namely ETV Marathi, Bangla, Kannada, Gujarati & Oriya.

     

    As ETV Network gears up for a refreshed strategy, Vizeum as the Media AoR has been appointed to play a pivotal role in the next phase of growth for the network.

     

    Confirming the same an official spokesperson from Prism TV said, “We are delighted to partner with Vizeum in our attempt to redefine the next phase for ETV channels. Building a brand around the network can present a lot of interesting challenges and we look forward to work with team Vizeum in getting people hooked to our regional channels.”

     

    Commenting on the win, S Yesudas, Managing Director – Indian Subcontinent, Vizeum said “All I would say with pride is, our dream of attracting clients and talent to Vizeum automatically in our 4th year of operation, rather than us having to go out, is becoming a reality.  I take this opportunity to welcome ETV Network into the Vizeum family. We are thankful to the client management for considering us worthy.”

     

    Vizeum successfully operates in 55 countries with a philosophy of in-depth understanding of the co existence of lives, brands and media in the actual world, through its process – motivation to media.

     

  • There are many who think that the show was a success and will eventually lead to some change as evolutions don't happen overnight

    End of Season 1 of Satyamev Jayate: The good, the bad and the ugly truths of life

    By Meghna Sharma

     

    In the past 13 weeks, one show has done what no other show has been able to in a long time – get people face-to-face with the ugly truths of our society. Aamir Khan’s television debut, Satyamev Jayate, was the most-talked about show even months before it was aired. It was touted to revolutionize the Sunday morning slot on the Indian television.

     

    From the very first episode till its last episode on July 29, the show was able to create a lot of buzz. People shared their views on the social ills the show highlighted on social networking sites. The news channels and newspapers carried expert views and opinions on the show. It didn’t back down from highlighting the fact that a country of one billion lives like ostriches when it comes to taking action against such evils.

     

    However, inspite of all the hue and cry, one question still remains on everyone’s mind: was it really effective?

     

    MxMIndia spoke to industry experts, journalists and even activists after the show was aired on May 6 and almost all of them gave it thumbs up. Now that the show has ended, we got in touch with the same people to know their opinions…

     

    TRP: the only yardstick?

    Chandradeep Mitra

    For any channel and show, the TRPs it gets are the yardstick at which its popularity is measured on. Star India’s Satyamev Jayate which premiered across nine channels – Star Plus, Star Pravah, DD National, ETV, Star Utsav, Vijay, Star Jalsha, Star World & Asianet – got a rating of an average 4 TVR for the CS4+ in the Hindi speaking markets and an average of 4.9 TVR for the All 4+, according to the TAM viewership data. But, as the weeks rolled on, the ratings dipped.

     

    Many, however, feel that such shows cannot be measured by TRPs as they are much bigger than that. “For a show like this, ratings alone cannot be the yardstick. One must not forget that the it was a non-entertainment show and was aired on Sunday mornings.  For a slot and content like that, the show did very good,” said Chandradeep Mitra, managing partner, Anvention.

     

    Anil Sathiraju

    He added: “We must look at the social impact it created and I’m sure it will remain in people’s memories for a long time. Apart from the buzz created on social networking sites and getting eyeballs, I’m sure now companies will also increase their CSR activities as it highlighted the work done by a few.”

     

    Similarly, Anil Sathiraju, Head – south, Mudra Max Media, too feels that content and impact are more important than the ratings: “What the show has done to the morning slot is evident enough, that it made people sit up and take notice. And I’m sure now most channels, including Star, will want to revive the slot and come up with shows which will not make the slot redundant.”

     

    Sundeep Nagpal

    The show wasn’t developed and promoted for TRPs, said Sundeep Nagpal, founder director, Stratagem Media. “It was applicable for the masses and not many shows of such genre have been created. Hence, it would be wrong to judge it on the ratings…it’s much more than that. It bought out the issues which are prevalent but under the surface. For example how many of us in Mumbai knew about Khap panchayats? The show is a turning point in the Indian television history.”

     

    The much-hyped show even went on to charge an exorbitant amount for the 10-second advertisement slot which was sold at thrice the usual rates. “For an advertiser, the show was the best medium to reach its audiences. For the first time, a show was created, which in turn created two new stakes – timeslot and a new category of a show. So, many didn’t hesitate in paying that extra for the quality they were getting in return,” explained Llyod Mathias, director GreenBean Ventures and former CMO of Tata Teleservices and Motorola.

     

    Aamir Khan vs Content

    Anita Nayyar

    According to the media planner, Anita Nayyar, who is moving back to her former agency Havas from Bennett, Coleman & Company (BCCL) by August, initially the show got the hype only because it was anchored by the actor and the fact that the concept of the show was well hidden. However, for a show like Satyamev Jayate, it’s the content which plays a bigger role.

     

    “Satyamev Jayate is a socially relevant show and in the beginning, I think, it did mobilize people. However, in between it lost its public appeal. And I’m not surprised as such shows only appeal to a certain section of the society. Hence, it wasn’t even able to garner the TRPs it deserved,” said Ms Nayyar.

     

    She explained that though the show was anchored by a popular actor like Aamir Khan there was a gap between enlightenment and mobilization. “The show was supposed to mobilize people, but it was only able to highlight the evils which we all know exist. Nonetheless, it was a good show.”

     

    Voicing the same opinion, Sarla Bijapurkar, sociologist, believes that if one has to score Aamir Khan vis-a-vis the content of the show, Aamir would win. “Public memory is very short and everything will be lost if there is no follow-up. For instance, take the episode where diktats of Khap panchayats were highlighted. Has anything changed? No, we still have such bodies making people’s lives miserable. Sometimes, when one hears or reads about such instances, it makes you wonder if we, as a society, take two steps backward for every one step taken forward.”

     

    “For me, the show will only mean something if it is able to do a follow-up on the issues highlighted. Also, instead of raising a new issue every time, I think, they should have focused on fewer and discussed about different dimensions related to a particular issue. Maybe, then it would have been able to brought about a change,” said Ms Bijapurkar.

     

    Waiting for a change…

    Ranjona Banerji

    However, there are many who think that the show was a success and was able to do more than just generate public interest and will eventually lead to some change as evolutions don’t happen overnight.

     

    Ranjona Banerji, a senior journalist and contributing editor, MxMIndia, feels that the show did justice to the concept though there were a few dodges like the show being too emotional, sometimes. The first two episodes – female foeticide and child sexual abuse – were able to create a lot of public interest. “Apart from these two episodes, the episodes which moved me were the ones on disability and senior citizens. The show did the work of a journalist and was even able to answer a few questions. Hopefully, they’ll tweak the show a little bit and come up with a second season – better and stronger.”

     

  • The Board of Directors of TV18 Broadcast Limited (TV18) also approved the acquisition in ETV’s Hindi news channels, non-Telugu GEC Channels and ETV Telugu Channels

    Network18 and TV18 announce Rights Issues

    By A Correspondent

     

    Network 18 Media & Investments Limited, at the board meeting held on Tuesday, approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 60 per equity share.

     

    TV18 Broadcast Limited has approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 40 per equity share.

     

    Network18, being the promoter and holder of majority equity in TV18, would be subscribing to about Rs 1,400 crore in the TV18  rights issue – therefore, once this subscription amount is netted out, the Net Aggregate Rights Issue of both Network18 and TV18 will result in a fund raising of about Rs 4,000 crores.

     

    The contribution of the current Promoter Entities of Network18 in this Net Aggregate Rights Issue of both Network18 and TV18 will be about Rs 1,700 crores.

     

    TV18 will utilise the Rights Issue proceeds to repay the existing debt, fund the acquisition of ETV channels and fund working capital needs. Network18 will utilise the Rights Issue proceeds to repay the existing debt and subscribe to the Rights Issue of TV18.

     

    The promoters of Network18 will be subscribing to their entitlement in full. They also reserve the right to subscribe to any unsubscribed public portion of the Rights Issues.

     

    Raghav Bahl, the founder and promoter of Network18 and TV18, has informed that promoter companies have entered into an arrangement with Independent Media Trust, a trust set up for the benefit of Reliance Industries Limited, to secure the funding required for this purpose. Further, Mr Bahl will continue to retain the management and 51 per cent control over Network18 and 51 per cent control over TV18 through Network18.

     

    Both the Companies will be filing the Draft Letters of Offer for their respective Rights Issues shortly.

     

    Mr Bahl said: “This is a truly seminal moment in the 18-year-old history of Network18/TV18. By inducting such a significant amount of equity, our balance sheets will become among the strongest in the industry. Also, by acquiring this strategic control over several ETV channels, TV18 will have a bouquet of leading television channels. Riding on the imminent digital wave, I am convinced that this acquisition is a significant move which will catapult TV18 into the forefront of India’s broadcasting industry. The proposed preferred access arrangement with Infotel Broadband will ensure that our content & services will be available on India’s premier technology distribution platform. On a debt free basis, both Network18 and TV18 hope to strengthen their position in various media segments like news & entertainment broadcasting, consumer internet, digital & print publications, filmed entertainment, home-shopping, e-commerce and other emerging businesses.”

     

    The Board of Directors of TV18 Broadcast Limited (TV18) during its meeting also approved the acquisition of 100 per cent interest in Hindi news channels, namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan and ETV Bihar and ETV Urdu channel (ETV News Channels); 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya (ETV non Telugu GEC Channels); and 24.5 per cent interest in ETV Telugu and ETV Telugu News (ETV Telugu Channels).

     

    TV18 will have the Board and management control of ETV news channels and ETV non-Telugu GEC Channels. The Board has approved an outlay of up to Rs 2,100 crores for this acquisition. Legally binding agreements will be executed for this purpose. TV18 has an option to buy the balance 50 per cent interest in ETV non-Telugu GEC channels and an additional 24.5 per cent in ETV Telugu channels.

    Ernst & Young Pvt Ltd acted as advisors for financial and tax due diligence and valuation of the assets. The legal due diligence was carried out by Khaitan & Co.

     

    ETV is among the Top 5 most popularly viewed networks in the country. It was one of the first entrants in the regional markets and the channels have a considerable viewership base. One of the key strengths of ETV channels is their ability to attract and retain loyal viewers.

     

    On a combined basis, TV18 will be offering a unique mix of national and regional channels, catering to diverse genres like Hindi and regional entertainment, general news in English, Hindi and regional languages; business news in Hindi, English and regional languages; music, kids, devotional and infotainment channels.

    Including the soon-to-be-launched services/variants, this combined bouquet of over 25 channels will be the most powerful and potentially profitable TV operation in the country, especially since India’s television industry is on the verge of a digital revolution.

     

    As a part of the deal for acquisition of ETV Channels, Network18 and TV18 have also entered into a Memorandum of Understanding with Infotel Broadband Services Limited, a subsidiary of Reliance Industries Limited, under which the companies and their associates will have the right to distribute the content of all the media and web properties of Network18; and programming and digital content of all the broadcasting channels (including the ETV channels being acquired by the company) through 4G Broadband Network of Infotel, which shall have preferential access to this content on a first right basis as a most preferred customer.

     

    Infotel Broadband Services Limited is setting up a pan-India world class broadband wireless network, using state of the art technology. As per Images Year Book, more than 70 per cent of India’s population is below 35 years, and 50 per cent of the population is below 25 years of age. This young educated population will be keen to access quality content through wireless devices, thereby ensuring a rapid growth in subscribers similar to the growth of tele-density in India during the last ten years.

     

    The key advantage for millions of viewers will be the ability to enjoy an uninterrupted, high quality, 24-hour viewership, even while they are on the move. This tie-up with Infotel will enable Network18 and TV18 to build on their first-mover advantage for the distribution of their content through the latest broadband technology.

     

  • Reliance to invest over Rs 1,500 crore in TV18 Group

    Done deal? Mukesh Ambani to enable Raghav Bahl to pick up ETV. RIL likely to invest Rs 1.5k cr for 30% & 4G rights

    By R Sriram

     

    Reliance Industries is embarking on a major diversification into the media and entertainment sector with the Mukesh Ambani firm agreeing to fund a transaction that will result in a sizeable stake for itself in a company controlling two of the industry’s largest businesses, the Network18 Group and the Eenadu Group of channels run by the Hyderabad-based Ramoji Rao.

     

    People close to the transaction, which has a number of stages, told ET that an RIL subsidiary will help the promoter group of Network18 fund the rights issues of its two listed entities, Network18 Media and Investments, which runs the portal moneycontrol.com, and TV18 Broadcast Ltd, which operates a number of business and general news channels, notably CNBC TV18 and CNN-IBN.

     

    ET was not able to independently verify the amount to be invested by RIL, but people with direct knowledge of the transaction estimated it to be more than Rs 1,500 crore. The money from RIL will help Mr Raghav Bahl, the promoter of the TV18 Group, subscribe to the rights issues of both the listed companies, Network18 and TV18. The full amount expected to be raised through the rights issues is estimated at over Rs 3,500 crore.

     

    The boards of TV18 Broadcast and Network18 Media will meet on Tuesday to discuss plans for a rights issue. Mr Raghav Bahl did not respond to an email questionnaire; a Reliance group spokesperson also remained silent, while Mr B Sai Kumar, the CEO of Network18, declined comment.

     

    Times NOW and ET NOW, owned by Bennett, Coleman & Co. Ltd, the publisher of The Economic Times, compete with some of the television channels owned by Mr Bahl. The strategic investment by RIL will be used by the Network18 Group to retire debt and eventually buy out RIL’s stake in Eenadu, the pan-India vernacular language channels owned by Mr Ramoji Rao.

     

    RIL sources said they had invested Rs 2,600 crore in the Eenadu Group through a subsidiary giving it ownership of all businesses apart from its Telugu channel, in which it owns 49 per cent. The transaction, once complete, will result in RIL recovering most of its investments in Eenadu. Messages and an email sent after business hours to the office of Mr CH Kiron, the managing director of Ushodaya Enterprises, the holding company of the Eenadu Group, did not elicit any response.

     

    By its own admission before the Andhra Pradesh High Court, Reliance Industries has said it has invested Rs 2,600 crore in entities of Mr Nimesh Kampani-led JM Financial Group, which in turn had invested in Ushodaya Enterprises. The AP High Court is hearing a petition alleging the investment was a payoff to Mr N Chandrababu Naidu, the former chief minister of Andhra Pradesh, an allegation RIL has denied in its affidavit. RIL’s deal with Mr Bahl, likely to be announced on Tuesday, is expected to create a powerful national news and entertainment company spanning several regional languages as well as English and Hindi.

     

    RIL to get Exclusive Rights to Content

     

    RIL, people close to the transaction said, is expected to hold an economic interest equivalent to a 30 per cent stake in the promoter group of companies, with the original promoter Mr Bahl owning 51 per cent and all voting rights.

     

    Further, RIL will have exclusive rights to content from 30 channels and web properties of the two media houses, which will lend a competitive edge to its broadband services to be rolled out later this year.

     

    RIL is laying the groundwork for national 4G broadband services expected to be launched sometime this year. Content for broadband services is generally outsourced, but RIL will have an advantage over others with this transaction which will give its subscribers a wide variety of channels ranging from general entertainment to news and movies.

     

    Earlier on Monday, Mr Sai Kumar, in a letter to all employees of TV18, hinted at a solution to the group’s debt problems. “Let me also take this opportunity to tell you that we are very close to addressing our debt levels and related issues which have been reported by various media in the last few weeks. We will learn the details from Raghav pretty soon,” said Mr Sai Kumar, who took over as CEO after the sudden resignation recently of long-time CEO Mr Haresh Chawla.

     

    The money is likely to be invested directly in companies controlled by Mr Raghav Bahl, such as RB Holding Pvt Ltd and RB Investments Pvt Ltd. These companies own 30.34 per cent stake in Network18 Media while Mr Bahl holds 9.03 per cent in his name. Network18, in turn, is the main shareholder in TV18 Broadcast with a 49.98 per cent stake. The two companies have suffered heavily in the downturn triggered by the financial crisis of 2008-09. While revenue growth has been strong, profits have plummeted and borrowings have soared.

     

    At the end of March 2011, Network18 had debt of Rs 1,777.89 crore. Its profit for that year fell 87.27 per cent. TV18’s debt stood at Rs 550.54 crore while profit fell 17.40 per cent. The markets have punished the two companies. Network18′ s market cap is down 171.57 per cent since January 5, 2009 while TV18’s has fallen 560.23 per cent in the same period. Mr Bahl’s companies also have a distribution joint venture with the Chennai-based Sun Group, called Sun18. It is not known if Sun’s channels, among the strongest in the south, are a part of this arrangement. American giant Viacom too has a joint venture with Mr Bahl for producing movies.

     

    Source:The Economic Times

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