An overdose of entertainment? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

An overdose of entertainment?

Apr 14, 2000

Two new entities made their forays into broadcasting during the last fortnight and the Hindi general entertainment channel was where the action was concentrated. Sri Adhikari Brothers (SABe TV) and Sahara TV both launched their respective Hindi channels with appropriate noise levels. The question that arises is whether there is scope for any more general entertainment channels particularly, Hindi channels. First of all Doordarshan (the state broadcaster), Zee and Sony seem to have built strong brand equities in this space. Star Plus, which was earlier restricted from doing more than 50% of its programming in Hindi (due to its tie up with Zee) has aggressively invaded this space. It is following the same strategy that Sony had followed earlier, buy out the top Hindi blockbusters and build up mind space till the in–house content is developed. (Sony meanwhile has gone ahead and launched ‘SetMax’ to cover one–off cricketing events and live entertainment programmes, which would flank its flagship channel)

The emerging distribution trolleys
DD1 Zee TV Star Plus Sony Sun
DDMetro Zee News Star Movies AXN Soorya
DDNews Zee Cinema Star World SetMax Udaya
DDSports Zee English Star Sports   Gemini
15 regional
4 regional
Star News    
  Asianet Star English    

Coupled with this, is the fact that the regional channels such as Sun TV and Eenadu TV apart from Doordarshan’s own regional channels are occupying the same space catering to the general entertainment pie.

And if one considers that seven years after the cable and satellite television business took off in the country Doodarshan, Zee, Sony and Sun remain the only profitable broadcasters so far, one can imagine the fate that could befall the ventures of Sri Adhikari and Sahara TV.

The first signs of consolidation are already evident with Zee taking over Asianet with a price tag of Rs 2 bn. The all–stock deal amounted to hardly 0.6% of the market capitalisation of Zee but gave it an entry into Sun’s backyard which earlier had taken over Udaya TV (Kannada TV) and Gemini (Telegu channel).

Going forward, the battlelines seem to be getting more clearly etched. Doordarshan, Zee, Sun, Star and possibly Sony would be the distribution trolleys carrying the two general entertainment channels, Hindi and English apart from a dedicated sports channel, a 24–hour news channel and a clutch of regional channels. Any new broadcaster would have to come out with only niche channels and hitch his bandwagon to any of these distribution trolleys.

Equitymaster requests your view! Post a comment on "An overdose of entertainment?". Click here!


More Views on News

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)