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Sri Adhikari in satellite channel foray - Views on News from Equitymaster
 
 
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  • Nov 8, 1999

    Sri Adhikari in satellite channel foray

    Sri Adhikari Brothers Television Network (SAB) has decided to launch a satellite channel company.

    The company is a leading television software provider in Hindi and other regional languages to various broadcasters that include Doordarshan, Zee and a host of regional channels. It has tie-ups with production houses in Sri Lanka, Nepal and Indonesia to produce their respective regional language contents.

    The move to enter the broadcasting arena has been mulled by the company for quite some time now. It had already announced launch of a Hindi entertainment channel 'Sabe' by January 2000, with a project outlay of around Rs 1.3 bn. This foray will be via a fully owned subsidiary. In order to raise funds for the project, SAB will expand its authorised equity base from the current level of Rs 75 m.

    The company's move comes after KPMG valued its software library of over 2,000 hours at Rs 530 m. The company has decided to bring in this library as its equity contribution towards the new company. It plans private placement of equity at a later date.

    It is clear that the company is banking upon its software library to make its satellite foray a success. The company has a strong technical backup to churn out more software as time goes by. But all this alone will not be enough for its success. The company has tasted success till now because it provided 2 to 3 hours of content daily to various channels. Now it will have to churn out at least 8 hours of programming for a 24 hour channel to run. This is not easy. Not because it will not be able to do so, but because viewers want variety, and one production house only cannot cater to different tastes at the same time, without compromising on quality. Even Zee, with its mammoth library out sources software to attract new themes and viewers. The company will also have to contend with growing competition.

     

     

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