STAR is taking control over the Tamil language channel Vijay TV by forming a joint venture company with UTV.
The two companies will hold a 50:50 stake in the company. The investment will not be through STAR India but STAR Hong Kong.
The joint venture company will be involved in Vijay TV’s content, technical services and advertising sales support. The technical services will include production and post-production facilities.
The ownership of the channel, however, will continue to be with Ronnie Screwvala-promoted UTV.
The new investment will mark STAR’s entry into the regional market. This is one area where it did not have a presence and allowed its rival Zee to grow with its bouquet of Alpha channels.
STAR had earlier announced that it would be handling the programming, distribution and ad sales of Vijay TV.