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Government approval to help Zee Telefilms save $2-3 m annually

11-December-2001
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Government approval to help Zee Telefilms save $2-3 m annually

Zee Telefilms is upbeat by the fact that it will be able to save around $2-3 million annually after receiving government permission to air seven of its satellite channels from India.

According to company sources this move will result both in higher operational efficiency and cost savings, besides opening up new advertising streams for Zee Telefilms. Currently, only advertisers with dollar revenues can advertise on channels aired by broadcasters uplinking from foreign soil.

According to industry analysts, the move was positive for Zee as besides the cost savings, the local advertisers' market offered a big window of opportunity.

Zee's advertising revenue has been falling in recent quarters on account of the overall economic slowdown and because the network's flagship channel Zee TV has lost out in popularity to rival Star TV's Star Plus channel.

Zee's shares rose as much as 3.8 per cent to a high of Rs 147 in early trade, but were lower at Rs 142.60 in mid-morning trade.

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