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Media: Weaving a complex web

Aug 14, 2008

The Indian media industry is currently in an exciting phase of growth. With buoyant demand for entertainment from the burgeoning middle class, many new players are joining the fray. Competition and the battle for survival forces not only organisms to evolve to adapt to their surroundings, but it also forces business organizations to do so. In this article, we shall examine the corporate structure of Network 18 & Zee Entertainment and observe how it is a direct result of the evolving media space.

Network 18 - Complex structure for a complex business
HomeShop18 Subsidiary (75%) Virtual retail
Setpro18 Subsidiary (67%) -
Events18 Division Events management
Sport 18 Division Sports management & representation
The Indian Film Company Affiliate -
Capital18 Affiliate -
Through TV 18 (listed) Subsidiary (51%)
CNBC TV18, CNBC Awaaz Divisions of TV18 Business news
Newswire18 Division of TV18 (70%) Data Services
Web18 Subsidiary of TV18 (85%) Online content, transaction & subscription
Infomedia India Subsidiary of TV18 (53%)- listed Publishing
Through IBN 18 (listed) Subsidiary (51%)
IBN lokmat 50:50 JV with lokmat group Marathi news
IBN 7 50:50 JV with Jagran group Hindi news
CNN IBN 100% owned English news
Viacom 18 50% JV with Viacom Music - MTV, VH1;GEC - Colors; Kids - Nickelodeon; Movies - Studio 18

Media sector players tend to have a complex corporate structure of subsidiary companies, joint ventures and divisions. This is because the sector consists of many delivery platforms such as TV, print, movies, online etc and caters to a variety of demographics & geographies. Hence, media groups tend to have separate companies that can focus on a given segment.

From the table above, it is evident that Network 18's organisation structure is evolving to accommodate the various demographic niches and viewer segments. On the other hand, it is evident from the table below that Zee Entertainment is evolving to accommodate the various geographies that it is present in, thanks to the Indian diaspora.

Zee Entertainment's holding structure
Zee Ent' subsidiaries A's subsidiaries B's subsidiaries
Asia today, Mauritius (100%) [A] Asia business broadcasting (Mauritius) (60%) Zee multimedia worldwide (Mauritius) (100%) [D]
Zee interactive learning system (52.5%) Expand fast holdings (Singapore) Pie. (100%) C's subsidiaries
ETC networks (54.83%) Pan asia infrastructure, Mauritius (100%) Zee sports Americas, Mauritius (100%)
Taj TV India pvt (50%) Zee multimedia (Maurice), Mauritius (100%) Taj TV Mauritius (50%)
Zee turner (74%) Zee TV South Africa (Proprietary) (100%) D's subsidiaries
Zee sports (100%) Zee telefilms Middle East FZLLC, U.A.E. (100%) Asia TV, UK (100%)
Zee multimedia worldwide, BVI (100%) [B] Zee tech (Guangzhou), China (100%) Zee TV USA, Inc. (100%)
Zee sports international, Mauritius (100%) [C]

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