Thursday, October 16, 2008

Return of the ‘Zee’di…

…and vehemently this time with more lethal weapons and combat skills
Remember the Hollywood blockbuster The Terminator – the first of three science-fiction action-thrillers starring Arnold Schwarzenegger. “I will be back” was what Arnold exclaims in the end. Well, somewhat similar was the roar made by Zee TV & its holding company Zee Entertainment Enterprises Ltd. (ZEEL) when critics wrote obituaries about it as it lost its leadership on the Indian idiot box to Murdoch’s Star Plus (the flagship brand of Star Network India) in early 2000. However, eight years later, there seems to be hardly any credence left to those claims Zee is back with a bang, both in terms of profits and TRPs. And the numbers speak for themselves!

The first quarter profit of ZEEL in FY ‘08-09 stood at Rs.1.61 billion, a mind boggling 98% jump from just Rs.812.70 million during the same period last year. Even the revenues for this quarter shot up by 38% to Rs.5.42 billion as compared to Rs.3.91 billion during the same period last year. The main drivers of this quantum jump were advertising revenues, which shot up by 37% to Rs.2.79 billion. So what got them back? “ZEEL’s broadcasting business is doing well. Their programming mix has found greater acceptance among their audience. This has resulted in strong & sustained TRPs, which have helped them monetise their advertising and subscription revenues better, and in turn resulted in stronger profitability,” avers Salil Pitale, Head, Media & Telecom, Enam Securities.

In fact, early this year Zee TV (the flagship channel of ZEEL) outsmarted Star Plus in the prime time band. However, for the past couple of months

Star Plus’ TRPs have shot up again resulting in a tough neck-to-neck fight between the channels. So can ZEEL sustain this upsurge in its performance? “Everybody thought they were dead, but they fought back & fought vehemently… if they continue with the same fervour they surely have a fair chance to outsmart Star Plus”, says a media analyst on conditions of anonymity. Moreover, ZEEL is now planning to bank on niche content to garner profits from existing gaps in the television business. The first niche offering from ZEEL’s stable will be a golf channel to be named Ten Golf, which will be rolled out in another two to three months time. “We will be number one or strong number two in all the categories of channels… we maintain that we will grow more than the industry growth,” Punit Goenka, CEO, ZEEL tells B&E.

Further, riding on their improved profits and higher growth in the movie business (projected to grow at 13% CAGR to reach Rs.176 billion by 2012), ZEEL is planning to expand its movie production and distribution business. In fact, it has already announced to invest Rs.8.5 billion in their movie business with nine movies already on the floor. “We will be producing a complete package of films – be it big-budget films or otherwise. We will also try to de-risk the model as much as we can,” Goenka shares with B&E. And if that clicks well, Zee is slated to become a dominating force in the entertainment business in the coming time.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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1 comment:

marina said...

i like the new show on sony hum ladkiyan,
interesting concept i saw their website
interesting videos of the girls check it out &