It’s a little over a year since the dramatic STAR Group and Balaji Telefilms saga came to an end. With this, the Ekta Kapoor-promoted soap factory’s fortunes changed. After posting losses for almost eight months, Balaji finally came out of the red in the latest quarter. In an interview with Aminah Sheikh, Balaji Telefilms' Group CEO Puneet Kinra talks about the company’s plans. Edited excerpts:
The last one year has been tough for Balaji, from being the leading TV production house to a struggling outfit...
Our old shows under our contract with STAR began going off air from the last quarter of 2008, and it has taken us some time to get new shows on air. Also, new shows by other broadcasters have been commissioned at a far lower value, largely driven by the recession that also hit the entertainment industry. Thus, our realisations per show came down drastically, from Rs 27 lakh per hour in 2008 to Rs 15-16 lakh per hour in 2009. In the last quarter of 2008, we were hit by the TV strike, which affected our bottom line for that quarter.
By what per cent have the realisations per show come down?
Over 40 per cent. But after eight months of operating losses for the quarter ended December 31, 2009, we have posted a net profit of Rs 1.81 crore (from Rs 0.56 crore during the corresponding quarter of 2008). However, the company's total revenue came down 23 per cent to Rs 38.97 crore for quarter from Rs 50.56 crore in the corresponding quarter. The number of shows have increased, but the realisations have come down. So, the revenue is not high. But we forecast steady growth in the months to come.
How many hours of programming do you air now?
As of now, we produce 216 hours of programming across Hindi general entertainment channels (GECs) and 158 hours (sponsored programming) in the south every quarter. We have seven shows on air across Hindi GECs and four shows on the Sun network. In the next two quarters, we may not launch new shows as our focus now is to strengthen our position and consolidate before increasing the number of shows.
What are Balaji’s plans in the new media domain?
Under the new media vertical, we have launched a portal 'Hoonur.Com' — an online talent platform that helps independent professionals showcase their talent and get projects/businesses from the film and television fraternity. We plan to launch exclusive entertainment content for the internet and mobile platforms. We are in the process of launching three shows on the new media platform this year and we will own the intellectual property rights of the shows.
How is the new brand Alt Entertainment different from the existing Balaji brand?
Balaji will continue to produce content for the masses across platforms, while Alt Entertainment will create content for television, motion pictures and new media, with the urban youth as the target audience. To begin with, Alt Entertainment will release a film directed by Dibakar Bannerjee, 'Love, Sex aur Dhoka'. Under the Balaji banner, we will release a film starring Ajay Devgan and directed by Milind Lutheria. In addition, there are six-seven movies in the pipeline, including 'Special Chabbis' by Neeraj Pandey and 'Shor' by DK & Raj.
