UTV Stars eyes break even in FY'13

MUMBAI: UTV Stars, the Bollywood lifestyle channel from Disney UTV stable, is looking at operational break-even this fiscal, according to a senior executive.

The channel, just over a year old, is banking on growth from ad sales, syndication and subscription coupled with strict cost controls to achieve this target.

"We expect to break even in FY?13," Disney UTV Executive Director, Youth Channels ? Media Networks Nikhil Gandhi tells Indiantelevision during an interview.

The Walt Disney Company, which owns Disney UTV, follows the financial cycle ended 30 September.

"The kind of cost control that we have got and hopefully if the markets start looking well, then we should be there," he adds.

UTV Stars competes with Times Television Network?s Zoom and BAG Films? E 24 in the Bollywood lifestyle space targeted primarily at the youth SEC AB 15-24.

E24 had informed that it had achieved operational break even in FY?12 posting a cash profit of Rs 13 million.

According to Gandhi, UTV Stars wants to reduce its dependence on ad revenues going forward. The plan is to grow the distribution and syndication revenue streams among others.

"Currently, ad sales is at about 60-75 per cent (of our total revenue) but going forward we would like to bring it down to 50-55 per cent. With digitisation, we are hopeful that this will change," Gandhi avers.

UTV Stars? business model includes advertising, distribution, syndication, video on demand and on-ground events.

The channel is distributed in countries like Australia, UK, Malaysia, Pakistan and Nepal to tap into the Indian diaspora.

UTV Stars syndicates in-flight entertainment content to airlines in India as well as abroad, according to Gandhi.

The channel?s content mix comprises Bollywood news and the entertainment shows in addition to music and movies.

"We have Bollywood music and movies but our large prime time play comprises news and shows. In the non-prime hours, we play music because the TG loves it and also because Bollywood music lends itself well with the channel," he explains.

Currently, UTV Stars produces three and half hours of original content every day which includes shows like Live My Life, Up, Close and Personal with PZ, Superstar Santa and Lux The Chosen One.

Apart from television, the broadcaster has built an online presence. "We have been able to create buzz on the web with half a million fans on Facebook. We are also the largest content provider for Bollywood on YouTube with 30 million views," Gandhi says.

The entire UTV Group (Disney UTV) content is powered by UTV Stars on YouTube. "We power the UTV group content engine on YouTube per se including UTV Motion Pictures; also we have got 10,000 hours of content that we had shot last year. So I think that gives us an edge," he asserts.