Zee Telefims is to pump in Rs 1 bn to fund its education business through the internet. Siticable, the Zee group’s own cable network, will be the major delivery channel for this project.
The Zee group reaches 140 million people in 25 million homes in India and another 70 million people in 15 million homes overseas. It covers about 22–23% of cable homes on an all India basis. It recently bought out its partner Rupert Murdoch’s stake in ATL, to emerge a full– fledged broadcaster.
The company has an ambitious plan but the problem is that of the adequacy of the bandwidth what with entertainment programmes themselves occupying a substantial space. Second, despite the availability of bandwidth one is not sure as about the clarity of the signals beamed if Zee were to use the cable channel to connect to the internet
The second part of the story is that Siticable is a major player in cities including Mumbai and Hyderabad but the fact remains that the company will have to seek the support of the other cable operators. Zee TV has been successful in getting on the top band of the cable operators since there is a lot of demand for the channel from the viewers themselves. Whether the Zee group will be able to create a demand pull for its educational venture remains to be seen.
Analysts have rated Zee TV as a buy, primarily because of the jump in revenues post the incorporation of the revenues that formed part of ATL earlier. Also the company has plans for a bouquet of channels which would all contribute to the revenue stream in the future.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407