zee - star patnership bennifits

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2 May 2011
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The Company has posted a net loss of Rs. 370.50mn for the quarter ended March 31, 2011 compared to a net loss of Rs. 605.80mn in the quarter ended March 31, 2010.
Dish TV India Ltd. (Dish TV) on Monday reported fourth quarter standalone revenues of Rs. 4517 million, representing 41.4% growth over the corresponding period last fiscal. The EBITDA for the quarter stood at Rs. 1089 million, recording a huge 93% increase over the corresponding quarter last fiscal. The net loss reduced to Rs. 370 million compared to Rs. 606 million in the fourth quarter last fiscal. The EBITDA margin for the quarter stood at 24.1%.

The company today also reported audited results for the financial year ended on March 31, 2011.

The full year fiscal 2011 standalone revenues stood at Rs. 15,246 million, while EBITDA for the year was Rs. 3,268 million with a margin of 21.4%. Standalone net loss for the year reduced to Rs. 1,897 million compared to Rs. 2,621 million in fiscal 2010.

The Board of Directors in its meeting held today, has approved and taken on record the standalone financial results of Dish TV for the quarter ended on March 31, 2011 and the audited results for the financial year ended March 31, 2011.

Subhash Chandra, Chairman, Dish TV India, said, “The fiscal 2011 witnessed the DTH industry in a never seen before form. The industry set new benchmarks for itself by outperforming its own stupendous growth of earlier years. While industry fundamentals remained strong, competitive intensity was never too frail. Leading from the front, Dish TV garnered a market leading average incremental share of 26% during the year.”

“Despite an ultra-competitive six player market Dish TV’s initiative to drive ARPUs has delivered heartening results. The enhanced High Definition bouquet coupled with the cricketing season enabled significant addition of HD subscribers who contributed their bit in driving Average Revenue per User for the fourth quarter to a level of Rs. 150. Though we are still much lower than the optimal, an increase in ARPUs while maintaining leadership demonstrates the underlying strength of Dish TV’s business model,” he added.

Commenting on the fourth quarter results, Chandra said, “The positive momentum with which Dish TV started fiscal 2011 was further strengthened with each passing quarter. The fourth quarter numbers, just like previous quarters of fiscal 2011, are a result of the management’s constant focus on operational efficiencies, innovation and customer satisfaction while targeting enhancement of shareholder value.”

Jawahar Goel, Managing Director, Dish TV, said, “Digitization continues to play a major role in transforming the face of the Indian media and entertainment industry and Dish TV remains on track to emerge as the largest and most profitable digital platform in the country. Ever since it started operations, Dish TV has been setting new benchmarks. The fourth quarter was witness to Dish TV achieving a 10 million strong subscriber base positioning it as the largest DTH Company in the whole of Asia Pacific. We were soon thereafter able to achieve our fiscal 2011 acquisition target of 3.5 million subscribers.”

“Our growth is testimony to the Indian consumers demand for superior digital content, world class service and an unparalleled viewing experience. During the year Dish TV acquired additional bandwidth on a second satellite for the purpose of accommodating high definition channels and also to build redundancy in the eventuality of a satellite failure,” he added.

Speaking on the recent regulatory initiatives, Goel said, “The Information & Broadcasting Ministry has announced its intent to implement the Digital Addressable Cable System by 2014 leading to a sunset for the analogue cable regime. Dish TV being the market leader in the digital distribution space expects this to have a significant upside for its business.”

Commenting on the overall performance, Goel said, “Our fourth quarter net loss is around 40% lower than the net loss for the corresponding period last fiscal. What is heartening is that this is despite an additional 3.5 million new subscribers added during this period. At the same time, all our key operating metrics have registered marked improvement over the previous year. With a more than 10 million strong and growing subscriber base we have started fiscal 2012 on a strong note and are committed to deliver better on all operating parameters in the year ahead.”

On February 24, ‘11, Dish TV India became the first DTH Company in the country and the whole of Asia Pacific to achieve a 10 million strong subscriber base. Dish TV doubled its subscriber base to reach 10 million in a short span of less than two years.

In a first for the industry, Dish TV recently announced its alignment with ‘Aadhaar’ – a 12 digit unique identification number which the Unique Identification Authority of India (UIDAI) is issuing to all residents of India. Dish TV now accepts the UID as a Know Your Customer (KYC) validation for address and identity proof. Dish TV will be acknowledging the UID numbers of all ‘Aadhaar’ holders as an officially valid document for installation and subscription of its services.

With a last mile reach of more than 10 million subscribers, Dish TV offers a transparent new medium for distinct advertising in an otherwise cluttered environment. Further, with television rating measurement agencies increasing the all India digital weightage in their reported markets to 15%, advertisers have started looking at DTH as a platform of choice for focused advertisement.

To capitalize on this, Dish TV has amplified its focus on advertising revenues as an alternate revenue stream and has in the fourth quarter generated advertisement revenue of Rs. 20 million compared to Rs. 5 million in the corresponding period last fiscal. Dish TV is poised to materially scale up revenue from advertising going forward.
ssparikshyaji please post the source also in ur article.......and the contents are different and the article is diiiferent.i cannot understand why the benefits will come????????
give a link to sorce now.........:smiles:
There is no relation between the topic and contents of the article. The article is about Zee network's operating profit.Nothing related to Star-ZEE partnership.
patnership means ................get united.................................more money........................................addition of more channels.................more fun.........................

source= indiainfoline.com
Thanks for explaining the meaning of partnership, but where is STAR involved here ?
Punit Goenka, managing director and chief executive officer, Zee Entertainment Enterprises Ltd (ZEEL) in conversation with DNA, speaks about Media Pro, his new joint venture with rival Star India, and the way forward:

Media Pro is a huge development for the country’s television industry. How did it all really happen?
Around a year back, Uday Shankar (CEO, Star India Pvt Ltd) and me came up with this idea of collaborating in the distribution space which was really the need of the hour. We discussed the possibilities and after a series of brainstorming sessions it was decided that we should do a joint venture through our distribution companies. The entire process of putting together a joint venture has taken close to 10 months and I am really happy at the final outcome.

Could you take us through the key highlights of the venture?
It certainly was a very complex deal given the fact that we are rivals competing for our share of the market. A deal of this nature required a lot of thought, deliberation, internal approvals and so on. While it has taken us long to get the new entity in place I can say now that it was worth spending all that time on this initiative.

What does this mean for the partners in terms of meeting business objectives, distribution and reach?
I don’t think there will be any significant impact on reach because individually both entities are distributed extensively. Just to give some number on the reach part, content from both broadcasters reaches over 80% of the target market. So we don’t see much gain in those aspects. Having said that, what the JV really brings to the table is the formidable power to bring the change required in the distribution business i.e. to curb piracy and influence digitisation. We will be coming up with various incentive schemes for cable operators who are actually willing to digitise and make addressability
a viable option.

It is said that a lot of talk is happening around digitisation in the cable space, but no one is really investing…
See it’s not a question of not wanting to address / invest in digitisation. If you look at the direct-to-home (DTH) segment, it has really revolutionised the distribution business in the last five-odd years. With over 35 million DTH homes today, it doesn’t mean that people are not willing to invest. You have six DTH operators already investing heavily in this business. It’s because of the fragmented nature of the Indian cable TV business with a significantly high percentage of leakages built into the system that there isn’t much incentivisation happening in this space. Thus, the coming together of two large bouquets can very well influence that change and that is precisely what we hope to do.

You believe cable operators will be open to actively pursuing digitisation and invest?
Absolutely. Yes. We will have to make them do so by giving them necessary incentives and putting the right procedures and systems in place.

What could be the incentives to cable operators?
It’s too early to talk about and is it is something the management will work out after taking into consideration things that need to be taken forward. Just to give you an example, we give discounts to DTH operators to shore up penetration. Similar schemes will be worked out for the cable operators as well.

How many channels are you looking to offer in the newly formed JV?
There are 68 channels in all and some of them are free-to-air. These are channels in the Zee-Turner and Star-DEN distribution network and includes channels that do not belong to either broadcasters like on the Star side they have NDTV and we have Turner.

What are the possibilities of bringing WWIL and Dish TV into this collaborative entity?
No, this collaboration is not a vertical but horizontal integration. So entities like WWIL, Dish TV in addition to DEN, Tata Sky and a few others are our customers and we will deal with them on an arm’s length basis just like we work with any other partner in the industry.

Do you see other similar alliances like Sun 18 and One Alliance becoming part of this JV in future?
We are open to working with anybody who wants to work with our shared mission and shared goal. If they are willing to support that, we will welcome anybody. But in terms of the equity structure of this joint venture, it will be only between Star-DEN and Zee-Turner.

You mentioned earlier about 12 to 24 months timeline to assess the success of this initiative. What would be the milestones?
Right now we have a vision about the set objectives to be achieved under this joint venture. Now we will have to work out a roadmap on how these objectives will have to be achieved. From there will emerge the milestones etc. It’s still very early to talk about roadmaps as we have just started and we will see a lot more action happening as we proceed from here.

Will this alliance also impact advertising and distribution revenues?
Advertising is not impacted as this is a pure distribution entity. As far as deals on distribution revenues for multi-system operator (MSOs) or cable operators are concerned, our objective is not to milk them but to make the industry healthy. Today what is happening is that the MSO’s business is restricted to only the carriage fee and is not able to collect any money from the ground. We will have to effect that change. So the money which the consumer pays has to find its way in the value chain including the government — for that matter by way of service tax and things like that which the government doesn’t getting paid for at the moment. The impact of those changes will actually result in each individual in the value chain getting his fair share of the money and that’s that we want to achieve.

On the piracy part, can you throw some light on how will it get addressed and curtailed effectively?
Piracy is a national subject and the moment you try and switch off one cable operator, piracy starts. With this initiative in place, it will be a far more aggressive fight against piracy. We will have a, dedicated management teams reporting to the board, and will focus on enforcing anti-piracy. Those caught indulging in piracy will be dealt with very strictly. And with the coming together of two large networks, the chances of curbing piracy will be far better than before.
source: www.dnaindia.com
Mr.Punit Goenka is talking about curbing piracy and improving distribtion. This will be beneficial only for them, not viewers. They are running business, their interest will be only on their profit, not customer interest. We are not going to get concessions after this JV, may be we will get all these channels at a premium.
the company will get the benefit nothing else .customer may get benefits if they will distribute their channel in dth.but the joint venture is for cable distribution only not for dth.so lets hope may be it will happen in near future......
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