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ZEEL’s network share declines to 16% in FY17 due to pay Hindi GEC
MUMBAI: With viewership shifting from entertainment to news, the network share of Zee Entertainment Enterprises Ltd (ZEEL) declined to 16% in FY17 from 17% a year ago.
Within the entertainment genre, ZEEL’s pay Hindi general entertainment channel (GEC) portfolio saw some decline in FY17. Zee TV is the company’s flagship channel while &TV is the other pay Hindi GEC in the stable.
ZEEL’s regional portfolio and Hindi movie cluster, however, strengthened their positions in FY17.
“Several events during the year led to a shift in viewership from entertainment to news genre. While the pay Hindi GECs saw a fall, ZEEL’s regional and Hindi movie channels posted growth in FY17,” a media analyst said.
The reach of ZEEL’s international channels increased by 29% in FY17 to 363 million people in more than 172 countries. The increased reach is driven by wider availability of content for the Indian diaspora and new channels for non-Indian audience launched during the year.
ZEEL’s movie business grew 127.5% to Rs 161.5 crore in FY17. The growth in Zee Studios’ revenue was largely driven by the success of two movies released during the year.
Out of ZEEL’s total revenue of Rs 6,434.2 crore in FY17, 57% came from advertising and 35% from subscription.
ZEEL MD & CEO Punit Goenka is bullish about the growth of the television business in India. “India’s low television penetration of 63% and a significantly lesser time spent on watching television provides headroom for sustained growth. As per estimates, television will continue to increase its share within the M&E industry, indicating the growth opportunity for our broadcasting business. During the year, our portfolio of entertainment channels further strengthened its competitive position on the back of differentiated content and launch of targeted channels. We will continue with our strategy of segmenting the audience and expanding our product offerings across genres, languages and demographics,” he said.
ZEEL’s movie production arm, Zee Studios, and music publishing label, Zee Music Company, are scaling up and being positioned as important growth drivers. “Movies and music are an integral part of viewers’ entertainment bouquet and account for over 15% of the Indian media and entertainment industry. It also allows access to a wider audience base, especially in the youth and male segments,” said Goenka.
Leveraging its expansive content library, ZEEL will continue to expand in new markets overseas. “We remain committed to serve the Indian diaspora through more channels,” said Goenka.
ZEEL will relaunch its digital products, dittoTV and OZEE, in the second half of the year. “Increasing digital consumption in India is adding to the overall time spent on video viewing and represents a strong growth opportunity. Our two products, dittoTV and OZEE, performed well during the year in terms of increasing their reach and building organic traffic growth. We are in the midst of refreshing our digital offering, consolidating the learning from our subscription and advertising-based platforms. We will be launching this product in the second half of the year,” Goenka stated in the company’s annual report for FY16-17.
Live events is another vertical ZEEL is looking to expand. Zee Live, the youngest member of the ZEEL family, kick-started its operations with the launch of its first two events—‘Wicked Weekends’ and ‘Zee Theatre Tour’. “We are working on several concepts in this space which will be rolled out gradually,” Goenka said.