Zeel eyes 9% growth from international biz in FY'12

MUMBAI: Amid a global economic downturn, Zee Entertainment Enterprises Ltd (Zeel) is looking at a 9 per cent growth from its international business this fiscal.

India?s leading broadcasting network overseas will see international income up from advertising, syndication and other operations while subscription revenue will stay almost flat.

?Historically, we were very subscription-led. But for the last three years we have developed other revenue streams like mainstream advertising and syndication, which are posting growth. That enabled us to launch many products,? said Zeel international business head Bharat Ranga in an interview with Indiantelevision.com, while refusing to disclose any financials.

Zeel had posted an international subscription revenue of Rs 4.09 billion in FY?11, degrowing by 2 per cent over the year-ago period. In the first six months of this fiscal, the company has reported revenue of Rs 1.93 billion.

Zeel announces its international subscription revenues, but does not disclose the break-up of its advertising income from India and other markets.

The depreciation of the rupee against the dollar would somewhat help Zeel in the second half, but the economies of UK and Europe still remain terribly stressed.

?Europe and UK remains a huge challenge but within this turmoil, the South Asians are somewhat better placed. However, because our competitors sell very cheap or even make free content available, growth is still a challenge,? said Ranga.

Zeel launched Zee Caf?, a hybrid channel, to arrest degrowth in that market. The channel airs cricket and regional fiction shows sub-titled in English, among other lines of content.

So will the company launch more channels in global markets? ?We are very selective about launching Indian channels in these markets. We launch only when we spot gaps. In UK, we felt that there was a male product gap. We would like to launch when we see that there is an instant market need. We want to first harness the growth of these new launches,? said Ranga.

Zeel has also paced up its localisation strategy in global markets, which keeps it far ahead of its rivals. Zee Aflam, for instance, has seen reasonable growth and reached break-even status within three years. Other localisation experiments are already on in Malaysia, Russia and, to a limited extent, in France in partnership with Canal.

Will Zeel launch local products in more markets? ?There are plans in additional markets but we can?t disclose now because it is strategic in nature. We have developed homegrown tools to identify markets,? said Ranga.