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Subhash Chandra-promoted Zee Entertainment Enterprises Ltd (ZEEL) is on an expansion spree. After acquiring leading Odia general entertainment channel Sarthak TV, the company is evaluating entry into the Malayalam and Bhojpuri markets.
ZEEL is studying the Bhojpuri market. Media observers feel that there is space for a new entrant even through the acquisition route, particularly after popular GEC Mahuaa TV ran into deep financial trouble. “In the cow belt, we are still studying that market, especially on the Bhojpuri side, but we have not taken any decision yet on that,”
ZEEL MD and CEO Punit Goenka told media analysts. ZEEL is looking to stabilise the Tamil channel, after which it will explore a Malayalam GEC. That is the last southern-language market left for ZEEL to penetrate. “Once our Tamil strategy stabilises and turns the corner, we will start exploring opportunities in Kerala,” Goenka told analysts.
The expansion into the regional-language markets will mean that ZEEL will continue to drive revenue growth from new businesses. Strong organic revenue growth is already coming from some of the popular existing entertainment channels. ZEEL runs a clutch of regional entertainment channels, including market leading Zee Marathi and Zee Talkies (Marathi), Zee Bangla (strong No. 2 in West Bengal), Zee Telugu (No. 1 in Q1 FY16), Zee Kannada (No. 2 in Karnataka) and Zee Tamizh.
Except for the Tamil channel, all ZEEL regional channels are in the top three spots and are profitable. ZEEL has Rs 1,780 crore (Rs 17.80 billion) in cash, more than sufficient to fund any regional expansion plan. But Bhojpuri and Malayalam offer different sets of opportunities and challenges.
Read more at: http://www.televisionpost.com/television/after-odia-zeel-evaluates-bhojpuri-and-malayalam-channels/ | TelevisionPost.com
ZEEL is studying the Bhojpuri market. Media observers feel that there is space for a new entrant even through the acquisition route, particularly after popular GEC Mahuaa TV ran into deep financial trouble. “In the cow belt, we are still studying that market, especially on the Bhojpuri side, but we have not taken any decision yet on that,”
ZEEL MD and CEO Punit Goenka told media analysts. ZEEL is looking to stabilise the Tamil channel, after which it will explore a Malayalam GEC. That is the last southern-language market left for ZEEL to penetrate. “Once our Tamil strategy stabilises and turns the corner, we will start exploring opportunities in Kerala,” Goenka told analysts.
The expansion into the regional-language markets will mean that ZEEL will continue to drive revenue growth from new businesses. Strong organic revenue growth is already coming from some of the popular existing entertainment channels. ZEEL runs a clutch of regional entertainment channels, including market leading Zee Marathi and Zee Talkies (Marathi), Zee Bangla (strong No. 2 in West Bengal), Zee Telugu (No. 1 in Q1 FY16), Zee Kannada (No. 2 in Karnataka) and Zee Tamizh.
Except for the Tamil channel, all ZEEL regional channels are in the top three spots and are profitable. ZEEL has Rs 1,780 crore (Rs 17.80 billion) in cash, more than sufficient to fund any regional expansion plan. But Bhojpuri and Malayalam offer different sets of opportunities and challenges.
Read more at: http://www.televisionpost.com/television/after-odia-zeel-evaluates-bhojpuri-and-malayalam-channels/ | TelevisionPost.com
