GBN, TV 18 to launch news channel

Global Broadcast News (GBN), the soon to be launched news broadcasting company promoted by TV 18, Rajdeep Sardesai and a group of individuals, has signed a co-branding and joint marketing deal with Time Warner Group, beating other Indian suitors.

Under the terms of the agreement, GBN's soon-to-be-launched 24-hour news channel will be re-christened CNN-IBN. (IBN, or India Broadcast News-the company's earlier name).

Turner has been in talks with a group of Indian broadcasters for a while now to hammer out a partnership for CNN in the news broadcasting space.

Broadcasting industry sources said that the US broadcasting major was very close to closing a deal with another Indian broadcasting company sometime back.

"We were on the lookout for an appropriate media partner and have found one. The CNN news group is committed to expansion internationally and become relevant to viewers locally," Anshuman Mitra, managing director, Turner India, told Business Standard.

CNN has similar deals with local players in Turkey and Spain. However, while it has forged equity partnerships there, it is not "as of now" looking to do that in India.

The deal - first of its kind for Turner in Asia Pacific - may provide GBN an edge over its competitors in terms of content, technology and expertise in running new broadcasting operations.

As per the commercial conditions of the deal, the Indian company will pay the US broadcaster a mutually agreed annual royalty fee for using its brand and a share of the revenue. The Indian channel will have access to CNN's live breaking news and key feature programmes.

CNN-IBN, will build upon the strong foundation of TV18's news gathering experience and infrastructure in India, backed by CNN's extensive global news network.

The channel will be headquartered in New Delhi and will be supported by over 20 bureaus nationwide.

"In a fast-globalising India, access to CNN's global news network will add immense value for our audiences," Sardesai, editor-in-chief, GBN said. GBN, a TV 18 Group company, is a 74:26 joint venture between the TV 18 group and Sardesai, Sameer Manchanda and Haresh Chawla.

However, Turner will not have any equity stake and editorial control in GBN on its proposed news channel. This unique alliance will, for the first time ever, enable Indian viewers to view local news as well as relevant global news from CNN, the world's news leader, on the same platform.

The new channel will focus on providing news on India with, while CNN International will continue to deliver global news to Indian viewers. GBN will also be available on international markets too.

"This service will complement CNN International's global news offering and marks another milestone in CNN's efforts to move closer to its audience though local partnerships," said Chris Cramer, MD, CNN International.

"The alliance is the first of its kind for CNN and Turner in the Asia Pacific. The service will leverage the combined international and local journalistic expertise to provide unparalleled coverage of global and local events as they unfold," said Anshuman Misra, MD, Turner International India.

According to broadcast industry estimates the Indian news market is presently worth Rs 500 crore, and has grown over five times in the last two years.