May 23, 2000|
Reliance enters media
The Reliance group has entered the media business via the takeover of Plus Channel (a content provider). The group has also made public its plans to float a general entertainment channel.
Plus Channel was floated by noted media personality Amit Khanna along with Dilip Piramal of VIP Industries. However, the company failed to takeoff and went into the red in the mid nineties.
However, more interesting of Reliance’s plans is the announcement of a launch of a general entertainment channel through a new company Reliance Entertainment.
This is because for a general entertainment channel the cash burn can be anywhere between Rs 1.25 bn to Rs 2.50 bn per annum. More importantly one is not sure whether the window of opportunity for a general entertainment channel is still open, since there are five strong channels viz. Zee, Sony, Star and above all Doordarshan who have already built strong brand equities.
Apart from this there are a clutch of regional channels such as Sun and Eenadu (including DDs own regional channels) who cater to the same segment. So the general entertainment channel is already overcrowded and it will be interesting to see how Reliance establishes its place in this market.
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