Media to make waves with pay TV

TTM EPS

  PE As on

Net 
Profit% chgMar 07Apr 07PEG* Zee Enter59.2

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3.877.20.6 Deccan Chro25.6153.16.830.10.3 DIC India2.057.415.611.31.4 Adlabs Films12.656.316.925.50.2 UTV Software20.0301.619.516.2- Macmillan India11.61.420.914.2- Navneet Pub1.3-12.54.612.50.7 Infomedia2.6183.52.097.0-  In the first three quarters of 2007, as many as 8-10 television channels are slated for launch. By the end of this year, about 200 private FM radio stations will be operational. At least two more private direct-to-home (DTH) companies, Sun TV and Reliance will start their service competing with Tata Sky and Dish TV.  The listed media firms have posted positive results as well. Zee Entertainment Enterprises posted a 11 per cent growth in consolidated revenues for 2006-07 at Rs 384 crore for the quarter ended March 31, 2007, as against Rs 347.6 crore in the corresponding period last year.  Subhash Chandra, CMD, Zee Telefilms said the company's DTH business Dish TV had a registered subscriber base of 1.9 million in FY07 and was well-poised to cross the 3-million mark next year. "Dish TV is one of the fastest growing DTH services in the world and we are confident that it would build long-term shareholder value," he said.  News broadcaster NDTV is all set to launch its entertainment and music channels by the end of this year.  The film industry too is experiencing increasing corporatisation. Digital cinema exhibitors UFO Moviez received funding to the tune of Rs 96.8 crore from 3i, a private equity player.  Last year, several companies entered into long term contracts with directors and actors to secure their content pipeline. Adlabs has signed contracts with actor Hrithik Roshan for Rs 35 crore for three films and actor Akshay Kumar for Rs 18 crore for three films.  It has also roped in film-director Vipul Shah for Rs 200 crore for 8 films and is reportedly signing a Rs 22 crore three-film deal with actor John Abraham.  UTV reportedly has set aside Rs 100 crore for contracts with individual directors. According to industry sources, more than half of the releases in 2006 were by corporates rather than individuals.  The corporates are also establishing their presence in the film distribution space with media conglomerates such as UTV Software, Sahara Group and Eros International entering this segment.