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ZEEL to entrust ad sales to new subsidiary, to absorb Taj TV’s distribution biz into itself
MUMBAI: A common roof is being constructed to run the ad sales of Zee’s entertainment, news and digital businesses.
Zee Entertainment Enterprises Ltd (ZEEL) is forming a separate company that will not only handle its ad sales but also that of its sister company Zee Media Corporation Ltd (ZMCL).
The new entity, Zee Unimedia Ltd, will start with managing the ad sales of ZEEL’s digital and broadcasting outfits. The stretch will happen after that, and ZMCL’s clutch of news channels and newspaper DNA will be included.
“The aim is to consolidate the ad sales functions to keep in line with the changing market dynamics. To start with, the new company will look after the ad sales of ZEEL’s digital and broadcasting business. The plan is to extend this to the news channels and DNA, subject to approvals from the respective boards,” ZEEL chief finance and strategy officer Mihir Modi told TelevisionPost.com.
Zee Unimedia, a wholly owned subsidiary of ZEEL, will have a chief to head the operations. The process is on to formalise that appointment.
The company also has the ambition to manage the ad sales duties of external channels not owned by the Zee group.
Zee Unimedia will provide an integrated solution to media buyers from 1 April, offering multiple options across genres and platforms. The plan is to work as canvassing agent for ZEEL, its associate entities and third-party companies, at a mutually agreeable commission on arm’s-length basis.
The ZEEL board has approved the acquisition of 100% stake, comprising 700 equity shares of Rs 10 each, in Zee Unimedia at par value.
Taj TV’s distribution biz to be now integrated in ZEEL
In another development, ZEEL has decided to move the TV channel distribution business from the wholly owned subsidiary company to itself from 1 April. This is due to business and tax reasons. Currently, the distribution function is handled by Taj Television, a wholly owned subsidiary of ZEEL.
“The TV channel distribution business of Taj Television is going to move out and become an integral part of ZEEL due to business and tax reasons,” said Modi.
The ZEEL board has in-principle approved the proposal of reorganisation of the channel distribution wing.
“ZEEL will also distribute channels of broadcasting entities of associated/related entities of the company at a mutually agreeable commission on arm’s-length basis,” the company said.
The aim is to optimise channel distribution operations and benefit from the increasing penetration of direct-to-home (DTH).
ZEEL will continue to distribute the Turner channels as an agent.