India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 134 ZEE NETWORK TELEVISION LIMITED Company Background Global Footprint of Zee Network Television Limited Zee Network Television Limited is one of the largest vertically-integrated media and The company has one of the largest multiple entertainment companies in India. Zee Telefilms distribution platforms in India and reaches out Limited was founded by Subhash Chandra in to 350 million viewers in over 120 countries, October 1992. Earlier, Zee had entered into a joint in the USA, Canada, Europe,Africa, the Middle-East, venture (JV) with the Star Group of Companies South-East Asia,Australia, and New Zealand. for television broadcasting in India. Later, News Corp Limited acquired Star's satellite distribution As on March 31, 2005, Zee Telefilms had an business. Zee, together with News Corp, founded employee strength of approximately 2,400. Siticable, which is one of the major cable MSOs. In FY 2005, the company's revenue stood In March 2000, Zee acquired News Corp's stake at US$ 291 million, with a profit after tax (PAT) in both Siticable and the broadcasting business. of US$ 70 million. Zee's business involves the entire value chain Zee in the United States of the media and entertainment business in India, right from developing content to reaching out Mode of Operation to the end consumer through satellite, cable, The company operates in the USA through and the Internet. It is one of the most popular its subsidiary, Zee TV USA. entertainment brands in India. Zee is the largest producer and aggregator of Hindi programming Overview in the world. It is also the first listed media Zee network's US operations are managed by company in India. It has launched a number of Zee TV USA. Zee Telefilms commenced its US regional channels in the country - Zee Marathi, operations with the launch of Zee TV on July 15, Zee Punjabi, Zee Bangla, and Zee Gujarati. 1998.After the success of Zee TV in the US, Zee Telefilms launched its South-Asian Movie and Music channel, Zee Cinema in December 1999. Zee Telefilms has launched two other channels - Zee Gujarati and Alpha ETC Punjabi - after its initial round of success in the US. Zee TV can be accessed on major cable systems in the US, including AT&T,Time Warner, and Comcast and Cox. Currently, Zee can also be accessed in 134 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 135 Canada, Panama, St. Marten Island, Curacao,Trinidad Targeting South-Asian population & Tobago, and Surinam. Zee provides four channels in the USA to the South-Asian community in the USA and Zee TV was launched to attract the South-Asian Canada, and two channels to the same community population in the US. Initially, it offered a in the Caribbean Islands.Within eight years of programming mix from India, Pakistan, and the UK, entering the US, Zee has managed to reach two as well as free cricket and the latest blockbuster million South-Asian viewers in the Americas. movies. It succeeded in appealing to the South- The company expects to generate revenues Asian Diaspora in the US by providing them access of nearly US$ 50 million this year. It employs to programmes of their native tastes, thereby approximately 18 personnel. making them feel at home even while living in the US. Its popularity increased rapidly and it soon Success Factors became the top-ranked non-Hispanic ethnic channel.The company then launched Zee Gold, The company has received constant support the first 24/7 South-Asian movie and music channel from its parent company in terms of investment in the US, providing the audience with music and and providing capability to tap market potential movies from South Asia.This strategy of catering and avert risks. Some of the major factors to the tastes of the South-Asian population in the contributing towards its success in the US are: US earned rich dividends for Zee. Its market penetration increased and it also crossed the US borders to reach neighbouring countries. Expansion of Channel Portfolio Zee has expanded its channel portfolio from just one channel in 1992 to more than 22 channels over the years, such as Zee TV, Zee Cinema, Zee 135 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 136 The company plans to enhance its presence in key international markets, either on its own or by forming JVs, to diversify its revenue streams. The company plans to launch more channels in the US market to gain an enhanced audience stream. It also plans to introduce its services on other communication platforms such as mobile, IPTV, etc. Zee Telefilms plans to venture into IP radio services and cater to the increasing demands of its customers. Music and Zee News. It has added a business channel, a religious channel, and a sports channel to offer comprehensive range of channels to its customers.The company has also acquired the distribution rights of Home Box Office (HBO) from Time Warner Inc. It provides content services to Dish TV, India's first direct-to-home (DTH) service. Future Plans Corporate Restructuring Zee Telefilms has undertaken a corporate restructuring exercise to streamline its operations and improve operating efficiencies. It has approved the de-merger of the company into four entities - Zee Telefilms Ltd.,Zee News Ltd.,Wire and Wireless (India) Ltd., and Siti Cable Network Ltd. The Dish TV business would then de-merge from Zee Telefilms. 136.