Media firm Zee Entertainment Enterprise (ZEEL) is focusing on strengthening its digital footprint in the global market. The financial year 2015-16 saw Zee take definite steps towards emerging as a global content company, with a strongly growing digital footprint.
As the global trends are emerging in favour of various digital platforms, the company is now intending to concentrate on the entire entertainment value chain of content creation from TV to films to live events, its annual report stated.
"The global media and entertainment industry is expected to grow at a CAGR of 4 per cent during 2015-18 to reach around USD 2.3 trillion. This may seem modest in relative terms but its absolute impact is significant... the share of various media is constantly getting recalibrated with digital growing at the fastest rate," said ZEEL Chairman Subhash Chandra in the annual report. He further said that the digital space is no longer about just viewing content on multiple devices only.
ZEEL reported consolidated revenues at Rs 58,515 million representing a growth of 19.8% over the previous year. Consolidated operating profit (EBITDA) for the year stood at 15,095 million
registering a 20.4% growth and resulting in a margin of 25.8%. The net profit for the year stood at 10,267 million representing a margin of 17.5%. The company’s performance was led by a robust growth in advertising revenues (28.9%) and subscription revenues across domestic and international markets (14.7%).
“Our growth has been ahead of the market growth trajectory, duly reflected in the growing viewership share of our network (17.9%). We continue to see strong growth in both existing and new products,” said Punit Goenka, Managing Director, Zee Entertainment Enterprise commenting on the company’s stellar performance in FY2015-16.
In the financial year gone by, Zee further strengthened its viewership share in the domestic market through a right-fit content strategy. Its new Hindi GEC, &tv, built onto its successful launch and
increased its popularity with the urban audience. The regional bouquet continued its stellar performance and gained further momentum. The acquisition of Sarthak TV, the Oriya GEC, signals the company’s confidence in identifying and acquiring successful businesses complimentary to its existing operations.
On-demand viewing patterns have resulted in newer content formats, crisper episodes and differentiated content packaging tailor-made to audience preferences. "This is where our expertise of rightly gauging the audience pulse is being leveraged ensuring that rich, engaging and relevant content is offered to our viewers across the globe," said Chandra. According to Chandra, India will be at the cusp of the transformation in the entertainment industry as it has good growth rate with growing disposable incomes.
"However, the share of wallet that entertainment commands today is lower than the global average presenting a great opportunity for growth," he said. Moreover, increasing urbanisation coupled with the Phase III and IV digitisation of the home cable delivery system is ensuring better entertainment infrastructure and a more addressable and understandable TV audience across the country. "ZEEL is proactively reorganising its operations focusing on newer delivery formats and ramping up its digital business in line with the changing dynamics of the operating environment," he said.