Content to achieve 30+ hours by Dec-end; to announce launch of OTT soon: Zee Ent
Oct 31, 2017 05:05 PM IST | Source: CNBC-TV18
The proceeds from the sports arm sale to Sony would be used to pay back to the shareholders, said Punit Goenka, MD & CEO, Zee Entertainment
CNBC-TV18’s Nisha Poddar caught up with Punit Goenka, Managing Director and CEO of Zee Entertainment and discussed about over the top platform launch, and also the investments.
He said the new platform known as Z5 will launch over the next few weeks and exact date will be known later.
He said the investments in this over the top will be significant but still maintain the margin guidance of 30 percent plus. The guidance includes the investments in OTT platform.
He said the OTT will be less capital intensive than competitors because of lack of sports genre.
OTT has far more incremental ad revenue growth opportunities and that coupled with the television network share that the company has managed to gain gives confidence to deliver double-digit ad revenue growth for the full year, even though for first half it was in single-digits, said Goenka.
Media house Zee Entertainment Enterprises’ consolidated profit grew by a whopping 147.8 percent year-on-year to Rs 590.80 crore, largely led by proceeds from sale of sports broadcasting business and other income. Profit in the year-ago quarter stood at Rs 238.4 crore.
Talking about the dip in subscription revenue growth, Goenka said it was low on two accounts. One, renewal of contracts got delayed due to litigation on the TRAI regulation front. Two, there was a lot of catch up revenue in Q2 of last year, unlike this year.
However, he is confident that in next 3-4 years the subscription growth will be in mid-teens. He is also confident of reaching 30 plus hours in terms of content by end of December.
As of now domestic growth will be all organic, said Gard adding that in international markets they are evaluating distribution based entities.
He said the proceeds from the sports arm sale to Sony would be used to pay back to the shareholders and the redeemable preference shares will be bought back soon.
Goenka said they are working on a tax efficient structure and as soon as board clears it, they will announce day, which will be very soon.
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