• OUTLOOK ARENA
  • VIEWS ON NEWS
  • AUGUST 14, 2008

Media: Weaving a complex web

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
Direct
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]

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (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, Canada or the European Union countries, 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 (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407