Zee has pole-vaulted its way into the southern language market by signing a memorandum of understanding (MoU) with Asianet Communications Ltd, the company that runs the Malayalam language service the same name. Under the MoU, Zee Telefilms will go in for a share swap with Asianet which will see it acquiring 51 per cent of the latter, effectively gaining control. Asianet will be given Zee Telefilms shares which will give it an equity position of less than 1 per cent in the company.
Zee TV has placed an enterprise value of Rs 4,000 million on Asianet, which means its outgo (in terms of Zee TV equity) to take the 51 per cent stake will be around Rs 2,000 million. Dr Raji Menon, the chairman of Asianet will get a seat on the Zee TV board. Ditto with Zee chairman Subhash Chandra who will hop on to the Asianet board. Asianet‘s name will not be changed, as it has quite a lot of cachet with its viewing audience.

Under the MoU, Asianet will be the southern language partner for Zee TV and develop content and channels for other southern tongues such as Kannada, Tamil and Telugu. In fact, a Kannada language channel is to be launched in the very near future.

Asianet reportedly has a library of 4,000 hours of programming and 1,200 Malayalam movies. Zee TV is looking at dubbing its software library and pumping it across the four languages. It will also help in the distribution of the channels across its digital bouquets in various countries.

The acquisition of the channels will help Zee TV jumpstart - in fact bulldoze - its way into the southern maket where Sun TV and Eenadu TV have a significant lead . Asianet will continue to be managed on a daily basis by Menon with more and more Zee TV expertise and creative and business talent coming into the company over time.

The media baron Rupert Murdoch‘s News Corp has picked up an additional 15 per cent stake in the Indian youth music channel Channel V. Sony Picture Entertainment‘s (SPE) failure to pump in additional cash into the channel which was seeking another round of funding resulted in News Corp acquiring SPE‘s 15 per cent stake in the channel. This has resulted in the media giant‘s stake rising to 77 per cent.
Initially, Channel V promoters were News Corp, Sony Picture Entertainment, Warner Music Group, BMG and EMI Music. The new equity composition is as follows:

News Corp: 77 per cent
EMI Music: 15 per cent
Warner Music Group: 4 per cent
BMG: 4 per cent

Channel V‘s board made the cash call barely eighteen months after its previous round of funding. The channel has reportedly posted lossed over $100 million ever since its launch. It has been consistently reporting losses and is under severe cash crunch. This situation has forced SPE to withdraw its stake thus exiting from the company.

According to a local newspaper, Suresh Bala, the General Manager Channel V said that the new equity composition would not affect the working of the channel and it would still remain autonomous.

The channel had lined up ambitious plans for the near future. The channel management is hoping that the new plans would ensure a turnaround for the channel.

VH1 the division of MTV Networks owned by Viacom International, Inc. will set its foot in the Indian air space. MTV India has drawn up plans for bringing the channel to India. The UK edition of VH1 will enter Indian territory by the beginning of next year when PanAmSat (PAS) 10 is launched.

The channel targets music lovers between the age group 25-44.
It‘s playlist features the best music from today?s charts as well as classic tracks and one-hit wonders from the ?60s through ?90s. VH1 UK?s programming includes mood-driven contemporary music throughout the day with focused shows featuring classic and current charts, live studio performances, documentaries and archive recordings. The network achieved 100% broadband cable distribution in the UK within seven months of launch becoming one of the most successful launches in UK satellite and cable history.

MTV India will thus have two channels-one focussed on Indian music and the other clearly on the international music. It thus hopes to make international music freaks satisfied with 24 hours of music of their choice.

But, will the channel garner enough revenues? Lack of advertising and penetration had earlier forced MTV India to cut down massively on International music and focus on the local scenario. Are the advertisors ready? Will many subscribers pay for the channel? Or will MTV India actually get in VH1 in India?

Finally Indian fashion will have a showcase to the world. B4U, the channel which carried Indian cinema to the global audience is all set to do the same with India Fashion.

B4U, the distributors of Fashion TV, or FTV as it is popularly known has tied up with the channel and will broadcast Indian Fashion shows throughout the world. This means that a whole new world for people from the Indian fashion industry who have been largely restricted to local markets.

The channel will also be involved in local level promotions like showing Indian fashion shows in theaters, promoting new faces and organising fashion shows and contests. For the purpose of fashion contests, B4U has tied up one of the leading model agencies of the world, Metropolitan.

Apart from the fashion channel, B4U will also start its music channel that is expected to compete with MTV and Channel V. B4U is also doing its bit to popularise Indian music. B4U has an arrangement with the international music channel MCM, wherein MCM will air one hour of exclusive Indian music.

The channel will also make foray into internet with its fashion channel. B4Ufashion.com is under construction and once it is completed it will be linked to FTV.fr. Ravi Nair would heads the infotech team of the channel. The site would have both B2B and B2C sections.

Sagar Entertainment will be investing up to Rs 1.4 billion in expansion. It has also kicked off global vision with the signing of a US $ 4.16 million co-production deal with an Indonesia based company.
The Ramanand Sagar promoted Sagar Entertainment is planning an investment to the tune of Rs 1.40 billion for their expansion projects of setting up a film city at Baroda and also for their foray into the Internet related activities projects. Out of the Rs 1.4 billion investment outlay, the company is investing around Rs 400 million in a state-of-the-art film city in Baroda. The complex is expected to house around 10 studio floors, with the first studio being commissioned as early as June this year. The Sagar Baroda Film City will have an artificial lake, 14 permanent residential cottages and multitude of outdoor locations, not to mention hi-tech post production facilities. ‘‘The facilities are mainly designed to cater in-house for Sagar Entertainment, any surplus or additional capacity will also be available on hire,‘‘ said Jyoti Sagar of Sagar Entertainment.

With regard to the Internet related projects, the Sagars have planned an entertainment based portal, webcasting their programmed software to an already captive worldwide audience, that the group enjoys due to the global successes of its programmes like Ramayan and Shri Krishna. ‘‘Webstreaming would let users the world over download TV like video off the Internet and watch it in the comfort of their homes computers,‘‘ states Jyoti Sagar. ‘‘And though in its infancy stage in India, the technology will mushroom to allow streaming with full length features, all of which would be allowing for downloading with a fee,‘‘ he added. The portal will also utilise the merchandising route to generate revenues for all of their products. And playing a very integral role in fulfilling these global ambitions of the Sagars, would be their new marketing offices being opened up in Dubai, London and New York.

When asked Mr Sagar as to how the company was planning to raise the money for these projects, he refused to divulge any information and only said that talks were on with some financiers for the same. It is also know from sources that any route of financing could be adopted be it debt, equity or private placement. In another major development, the Sagars have also signed a CO-production deal worth around $4.16 million with Parkit Films Group of Companies for producing a 104 episode serial. ‘‘The serial is essentially a costume drama based on a Persian Classic, the serial is being produced with the International audience in mind and will be simultaneously telecast in India and Indonesia,‘‘ said Mr Sagar. ‘‘Reflecting the collaborative effort, the serial will boast of an Indonesian-Indian cast and crew, with locations in Bali, Sri Lanka, Thailand, Burma and India, adding to the international flavour.‘‘ Headed by Raam Punjabi, Parkit Films Group of Companies are amongst the largest film and TV production houses in Indonesia‘s, with their programming software being telecast on a multitude of channels within the Asian footprint.