MUMBAI: Raghav Bahl is restructuring his media and entertainment companies under three operational heads as he gears up for expansion after getting Reliance Industries Ltd (RIL) to indirectly invest in it.

Forming IndiaCast, a distribution company that houses content syndication as well, Bahl has got individual heads to shepherd the entertainment, news and distribution businesses that are entering a new growth phase.

Bahl‘s broad plan could be to bring the ETV regional entertainment channels under Viacom18 operational management while its news entities will be under TV18, a source familiar with the development says.

It is not clear yet if this operational structure will be allowed to transition into an equity arrangement. For this to happen, media conglomerate Viacom will have to agree to invest and induct the ETV entertainment channels into the joint venture company, Viacom18, where it holds 50 per cent stake.

"Nothing has been finalised yet. Viacom, no doubt, will be happy to have the regional GECs under Viacom18. A lot will also depend on how RIL wants the structure to evolve. But there are other issues as well," the source says.

As part of the plan to fortify its regional presence, TV18 acquired partial ownership in the broadcasting assets of Eenadu after valuing it at Rs 21 billion. With the purchase, the company has got 100 per cent stake in 5 regional news channels of ETV (where RIL has 100% interest), 50 per cent stake in 5 regional GEC channels excluding Telugu (where RIL has 100% interest) and 24.5 per cent stake in ETV Telugu channels (where RIL has 49% interest). The news channels include ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, and ETV Urdu. The regional GECs are ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya.

The restructuring exercise comes in the wake of these developments and the exit of Haresh Chawla who functioned as Network18 and Viacom18 Group CEO.

"The role of Chawla was too unwieldy as he had full control of all the group companies . After his exit, a restructuring was needed keeping in mind the growth plans," the source explains.

Network18 Group has a combined turnover of Rs 19.52 billion that includes 50 per cent of Viacom18 (Colors, MTV, etc), the news channels under TV18 (CNBC TV18, CNN IBN, IBN7, etc), the web properties and HomeShop18. As the company gears up to launch a Hindi movie channel (put on hold) and regional-language channels, a breakup in roles is the need of the hour.

"It wasn‘t practical for Chawla to oversee the whole of Bahl‘s empire. His operational role at Viacom18 at times was uncalled for and led to a quiet unrest," says a senior executive who has left the company on condition of anonymity.

Bahl Wednesday announced the hiring of Sudhanshu Vats, a senior executive at HUL, as the group CEO of Viacom18 Media. Under
 him will fall Colors, Comedy Central, MTV, Nick, Sonic, Vh1 and Viacom18 Motion Pictures. He has already recruited Anuj Gandhi, an industry veteran, to spearhead IndiaCast‘s growth.

Bahl‘s new structure will mean that the non-ad sales business falls under the care of Gandhi while Vats gets to groom the entertainment networks and Sai Kumar to directly nurse the news and web businesses while continuing his role as Network18 and TV18 Group CEO.

"Earlier, everybody was reporting to Chawla. Now the reality is that each of these lines of businesses need individual management and are too expanded to be operationally under one CEO," the source says.

Take IndiaCast, for example. The new distribution company, under which also resides the syndication business, is already having a turnover of Rs 4.30 billion. Bahl‘s ambition is to scale this up to the size of the biggies, particularly in a digital environment where there is going to be exponential growth in subscription revenues. Zee Entertainment Enterprises Ltd (Zeel) reported domestic subscription of Rs 9.22 billion in FY‘12 and Rs 1.32 billion through other sales and services (syndication sales, playout & transmission services and facility usage income).

Bahl has given IndiaCast a wider playground, bringing under its umbrella content asset monetisation across geographies, platforms and mediums. The other channel distribution companies do not have such a broad canvass and content syndication falls outside their functional zones.

"Bahl believes that IndiaCast has enough leg room to grow and become a Rs 10 billion company over the next few years after digitisation of cable TV spreads," a media analyst at a broking firm says.

Vats will also have his plate full as the group expands its regional footprint and comes out with a Hindi movie channel and other entertainment products that are sure to launch in a digitised environment.

Kumar will have a tough task cut out for him as he tries to beat slow revenue growth for news channels. The web properties will 

also have to be guided to a scale that will make it comfortable for Bahl to tap the American market for raising capital through a public float.

After being rescued from a debt overhang by RIL, Bahl is laying out the new leadership structure that will provide fertile ground for new growth.

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Sudhanshu Vats joins Viacom18 as Group CEO

MUMBAI: Anil Ambani-controlled Reliance MediaWorks has collaborated with Japan?s leading private broadcaster TV Asahi through its wholly-owned subsidiary and animation production arm Shin-ei Animation.

The endeavour is to create all new episodes of Ninja Hattori, the comedy action animation franchise that has garnered a strong following in India and many other Asian countries.

While Shin-ei?s experienced team of writers and directors, in collaboration with the team of 100 animators at the Reliance MediaWorks? animation studio, have created the new Ninja Hattori episodes in 2D HD through a digitally mastered process, Reliance MediaWorks has also done the post-production and sound effects for the series.

Commenting on the collaboration Reliance MediaWorks COO ? Creative Services Naresh Malik,said, ?Being an end-to-end service provider helps us offer our clients with a one stop solution for their creative requirements and Ninja Hattori is an excellent showcase of our talent. Being associated with some of the top Japanese talent through Shin-Ei and TV Asahi for such a legendary show and bringing it back through digital technology has been an immensely challenging and great working experience for our Animation team.?

Being produced by Shin-ei Animation, original episodes of Ninja Hattori had been broadcasted on TV Asahi in the 80?s with a very strong fan base. In India, it has been one of the top-rated kids shows since its launch on Nick India in August 2006, and the new episodes will premiere on air on Nick India from May 2012.

Said Shin-ei animation producer Satoshi Kaisho, ?It is our first collaboration with any Indian company, and also very first challenge for us to make the classic show transformed into all new digitally mastered show without losing look and feel of the original episodes. Our hope is to get Ninja Hattori out to more children all over the world.?

TV Asahi is responsible for international sales of the show and has pitched it across other territories and has received strong interests from some of the key countries.