A sliding global economy has turned up the heat on the international businesses of the Hindi content broadcasters.
In 2008, Zee group stretched its wings in Russia while deepening its presence through the launch of Veria (the natural wellness channel is part of the Essel Group initiative) and Aflam (a Hindi movie channel with subtitles in Arabic) in the US and the Middle East respectively. Riding on a bull market, the group also launched a radio business in the UK.
The 2009 landscape will be far different, more punitive, and starkly grim. Delinquent ventures will be avoided and risky bets put on hold.
Zee Sports, thus, will not travel to other countries as the RoI (return on investments) just does not work out. In the US, it was launched as Zee Sports America because a partnership was hatched with EchoStar.
Zee Entertainment Enterprises Ltd (Zeel) will make efforts to guard turf in its two main markets - UK and the US - which make up 70 per cent of its total international revenues.
With around one-fourth of its revenues coming from its international business, Zeel's drive will be to maximise revenue opportunities from each market.
In an interview with Indiantelevision.com's Sibabrata Das, Zeel COO international operations Bharat Ranga talks about the need to value content appropriately, keep away from reckless expansion, and be tough on costs.
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Zee took several initatives to expand its global presence in 2008 like tapping the Russian market and launching channels in the Middle East and the US. Will the global downturn force a more conservative strategy in 2009? |
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Will there be a drive to take Zee Sports to other markets after launching the sports channel in the US? |
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Will there be more subscriber churn and slowdown in Zee's two main international markets, UK and the US? |
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Why? |
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Have you priced yourself lower in the US?
One of our group initiatives to expand in that market was the launch of Veria, a natural wellness channel, last year. It is a very premium and growing segment and we are bullish about the channel's growth. We do not have Zee Muzic in that market. Our subscriber base in Americas is close to a million. |
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How far has Zee progressed in cracking the Chinese wall? |
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Even Russia is considered to be a very difficult market, as Disney found out recently when it did not get the nod for taking a 49 per cent stake in a joint venture with local firm Media-One Holdings. What has been your experience so far? |
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Zee had to rework on its strategy in the Middle East and shut down Zee Arabia. Why? |
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Since Zee Gujarati is wrapping up after 30 April, will that offering end in the international market as well? |
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The rates of the Zee channels have stayed flat in UK at least. Has Zee lost pricing power in the international markets? |
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Which means that the revenue potential is still untapped? |
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What is it that Zee has done right in the global arena? |
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