Reliance Industries consolidates its media and distribution businesses

Under the new arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments

e4m by exchange4media Staff
Published: Feb 18, 2020 8:12 AM  | 4 min read
Mukesh Ambani RIL

Reliance Industries has announced a consolidation of its media and distribution businesses spread across multiple entities into Network18.

Under the new arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments. The appointed date for the merger shall be February 1, 2020. The Board of Directors of the respective companies approved the Scheme of Amalgamation and Arrangement at their meetings held today.

The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly-owned subsidiaries of Network18.

The restructuring shall create value-chain integration, and render substantial economies of scale. The Scheme shall also simplify the corporate structure of the group by reducing the number of listed entities.

The aggregation of a content powerhouse across news and entertainment (both linear and digital) and the country’s largest cable distribution network under the same umbrella shall boost efficiency and exploit synergies, creating value for all stakeholders.

The media industry is accelerating towards being a B2C play, led both by market factors and through regulation. An integrated media play shall further increase the breadth as well as the depth of the group’s consumer touchpoints and allow for retaining a larger share of the consumer’s spend on content.

The reorganization furthers the group strategy of building a media powerhouse that is agnostic across pipes, platforms and screens.

Shareholders of all the four Companies will benefit from streamlining of operations and strategy, focused management, and reduction of risk through consolidation.

Network18:

  • Will be an integrated media and distribution company with a revenue of ~Rs. 8,000 cr, 
  • Will scale-up as one of the largest listed players in the sector
  • Will be net-debt free at the consolidated level, providing a solid base for growth as well as improved shareholder returns
  • Will benefit from a balanced mix of cyclical and annuity revenues to unlock growth while ensuring stability.
  • Will create eco-system for growth opportunities in digital, broadcast media, cable and broadband.

The consolidation of cable businesses of Den and Hathway in one entity will leverage the combined strength of the ~27000 LCO partners who act as the touchpoints to ~15 mn households in India; delivering localized, people-friendly and ultra-fast customer services.

The combined Broadband entity will serve ~1 mn wireline broadband subscribers across the country.

Network18 shall, along with affiliates, have leading positions across the growing media and distribution landscape in India:

  • 13% share of TV viewership in the country o #1 News network and #3 Entertainment network in India by viewership
  • 56 channels across News and Entertainment, spanning 15 languages
  • 1 in 4 internet users in India are on the group’s websites or apps o MoneyControl (#1 Finance app) o Voot (#2 Broadcaster OTT)
  • News18.com (#1 Regional News destination)
  • 12.5% share of India’s cable & satellite pay-subscriber base o #1 cable platform, covering ~30% of India’s cable subscriber base
  • Presence across 18 states
  • 6.7% share of the country’s wireline broadband subscriber base
  • India’s wireline penetration is amongst the lowest in the world at ~7%, affording significant headroom for growth

Brief details of the Scheme of Arrangement:tv

Appointed Date: February 1, 2020

Share exchange ratio: 92 shares of Network18 for every 100 shares of TV18 78 shares of Network18 for every 100 shares of Hathway 191 shares of Network18 for every 100 shares of Den.

Valuation report for the fair share exchange ratio has been provided by BDO Valuation Advisory LLP (Registered Valuer) and MSKA & Associates (Chartered Accountants). The exchange ratio has been computed considering the higher of the average of the weekly high and low of the volume-weighted average price of the related equity shares during (a) the twenty-six weeks or (b) the two weeks preceding the date of the board meetings.

Citigroup Global Markets India Pvt Ltd. (for Network18) and ICICI Securities (for TV18, Den and Hathway) have issued Fairness Opinion on the share exchange ratio. Trilegal is the legal advisor and Dhruva Advisors LLP is the Tax Advisor for the Scheme. Reliance’s holding in Network18 will reduce from 75% to ~64% upon implementation of the Scheme.

The Scheme of Arrangement is subject to all necessary approvals.

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WION to launch on UK’s DTT platform Freeview

The channel will be available from March 22, 2023

By exchange4media Staff | Mar 21, 2023 3:56 PM   |   2 min read

wion

WION, World Is One will launch on the UK’s leading platform – Freeview via IP and using the most innovative FAST SSAI on 22nd March 2023. The channel expanded its global footprint and increased its reach by 15 mn Freeview Connect households in the UK. Viewers in the UK can tune in to the channel on Channel #287 via Freeview, starting March 22, 2023.

Emphasising the global partnership and outreach, Madhu Soman, Chief Business Officer of WION, said, “WION has always been open to exploring new platforms. Taking into consideration the fact that Freeview replaced the old analogue TV service accessibility to a widespread audience in the UK, it is a great opportunity for the channel to present global stories from an Indian perspective. This global move also encourages us to further boost timely and fast-paced news reportage with gripping visuals and strong content, backed by research and investigation.”

Anindya Khare, Marketing Head of Zee Media Corporation Limited, further added, “The United Kingdom television viewing market is expected to flourish because of some major factors like emerging economies' rapid economic development, demand for smart televisions, the growing over-the-top platform market etc. We strongly believe that the UK market has a lot of potential for the channel to introduce new customised programme packaging to the audience, engage stakeholders through strategised communication and build on a high preference ratio.

Through a strategised approach, we also look forward to being consistent in launching interesting programmes on WION in markets like US, India, UK etc. This allows our glocalised viewers and readers to understand the impact of major global events from a uniquely Indian perspective.”

“We are thrilled to launch WION via Freeview Connect and expand Freeview news offering with the leading news channel from India and also being able to monetise it using the Synapse FAST SSAI”, said Tanya Kronfli, Managing Director of Global Distribution Services, specialising on delivery and digital Monetisation of TV content via Freeview Connect.

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Gauranga Das Prabhu to be part of enba jury panel

Prabhu is an author, spiritual leader, inspirational speaker and member of ISKCON’s Governing Body Commission

By exchange4media Staff | Mar 21, 2023 8:57 AM   |   2 min read

gauranga Das

Gauranga Das Prabhu, an author, spiritual leader & inspirational speaker, has joined the exchange4media News Broadcasting Awards (enba) jury panel. Das, a graduate from IIT Bombay, is a member of ISKCON’s Governing Body Commission. He is actively involved in enhancing leadership effectiveness and governance of temples and communities globally.

Owing to his expertise in presenting vedic knowledge in a contemporary and enticing way, he has been a part of TEDx events and corporates like Intel, Salesforce, Google etc. He is the director of ISKCON’s Govardhan Ecovillage (GEV), founded by Radhanath Swami Maharaj. The GEV has won several awards, including United Nations World Tourism Organization (UNWTO) Award in 2017.

He has enabled GEV’s accreditation with multiple United Nation bodies like UNEP, UNCCD, ECOSOC and CBD. On behalf of ISKCON, he is UNEP’s Faith for Earth Counsellor.

enba was formulated by the exchange4media group in 2008 with the objective of recognizing the best in television news. The awards recognise and honour industry leaders who are responsible for shaping the future of television broadcasting in India. This year, enba is in its 15th edition. The jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

In the last editions, the enba jury was led by Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr Kiran Karnik – Former President – Nasscom, Dr Nasim Zaidi - Former Chief Election Commissioner of India, SY Quraishi – Former Chief Election Commissioner of India, N Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India.

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Longest-ever DD Free Dish auction gives Prasar Bharati Rs 1069 crore

The average price per slot stands at Rs 16.5 crore

By Sonam Saini | Mar 21, 2023 8:49 AM   |   3 min read

DD free dish

Public broadcaster Prasar Bharati has mopped up Rs 1069.60 crore from the e-auction of 65 MPEG-2 slots on DD Free Dish.  The broadcaster's total revenue has seen a 66 per cent jump compared to last year's auction.

On the last day of the auction on Monday, seven slots were sold, with the highest bid of Rs 18.7 crore coming from Bflix. Other channels that secured the slots on the last day were Enterr10 (Rs 17 crore), GNT (Rs 17.9 crore), India TV (Rs 18.65 crore), Bharat 24 (Rs 17.15 crore), ABZY Cool (Rs 16 crore) and Sun Marathi (Rs 18.5 crore). 

This is the first time in the history of DD Free Dish auction that the process went on for eight days. The auction was conducted over the weekend as well. 

The auction saw participation of broadcasters from different genres. However, the big four networks' Hindi general entertainment channels Star Utsav, Zee Anmol, Sony Pal and Colors Rishtey stayed out of the auction.

"The revenue could have gone up if these four channels had participated," said industry sources.

The average price per slot this year stands at Rs 16.5 crore. 

In the Bucket A+ category, which comprises Hindi GECs, 11 slots were sold for Rs 189.65 crore.

Last year, there were six slots in this category which were sold for Rs 91.1 crore. The highest bid in this genre was made by The Q India for Rs 17.9 crore. Other channels that bagged the slots were Dangal, Shemaroo TV, Manoranjan Grand, Manoranjan TV, Big Magic, Shemaroo Umang, Nazara, Dangal 2, Ishara TV and Shemaroo Ashirwad. The base price for this category last year was Rs 15 crore. 

Under the Bucket A (movie channels), 19 slots were sold for Rs 329.55 crore this year. The highest bid in this category was made by Zee Anmol Cinema for Rs 24.05 crore. In fact this was the highest price ever paid for a movie channel slot in the history of DD Free Dish auction. Last year, 16 slots were sold for a total of Rs 166.55 crore in this category.

Under Bucket B, which comprises (music Hindi channels, sports, and all channels of Bhojpuri languages), 12 channels were sold for Rs 206.85 crore. The highest bid in this category was by Zee Biskope for Rs 22.1 crore. The lowest bid in the music genre was made by 9XM for Rs 15.2 crore. 

Sources said, “The best bid came from 9XM, a music channel. They strategically waited for their turn and took a slot at Rs 15.2 crore, which is well below the average price paid for the other six music channel slots.”

Under Bucket C (Hindi news channels), 12 channels secured slots for Rs 199.1 crore in this year's auction. News18 India paid the highest price for the first slot at Rs 19.85 crore. Other channels that secured slots were Aaj Tak, TV9 Bharatvarsh, R Bharat, Zee News, ABP News, NDTV India, News Nation, Times Now Navbharat, Bharat 24, India TV and GNT.

In the 2022 e-auction, the pubcaster earned Rs 120 crore from the sale of 14 slots in this category.

Under Bucket D (all other remaining genre of Hindi, devotional channels, all genre of marathi, Punjabi and Urdu channels and news english channels), 10 slots sold out for Rs 144.45 crore. At Rs 18.5 crore, the top bidder in this category was Sun Marathi. Under Bucket R1 only one channel, Popular TV, bagged the slot for Rs 3.05 crore.

Compared to 2023, in 2022, the pubcaster earned Rs 645 crore from the allotment of 59 MPEG-2 slots. 



 

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FreeDish e-auction ends, Prasar Bharati earns Rs 1073 crore from 65 slots

On the last day on Monday, seven slots were auctioned. The highest bid came from Bflix

By exchange4media Staff | Mar 20, 2023 6:43 PM   |   1 min read

DD Free Dish

Public broadcaster Prasar Bharati has mopped up Rs 1073 crore from the e-auction of 65 MPEG-2 slots on DD Free Dish.  

On the last day of the auction on Monday, seven slots were sold, with the highest bid of Rs 18.7 crore coming from Bflix. Other channels that secured the slots on the last day were Enterr10 (Rs 17 crore), GNT (Rs 17.9 crore), India TV (Rs 18.65 crore), Bharat 24 (Rs 17.15 crore), ABZY Cool (Rs 16 crore) and Sun Marathi (Rs 18.5 crore). 

This is the first time in the history of DD Free Dish auction that the process went on for eight days. In fact, the auction was conducted over the weekend as well. 

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enba: Prasanth Kumar joins jury panel

Kumar is the CEO of GroupM-South Asia

By exchange4media Staff | Mar 20, 2023 8:19 AM   |   1 min read

PK

Prasanth Kumar, CEO - GroupM South Asia, has joined the exchange4media News Broadcasting Awards (ENBA) jury panel. Kumar, popularly known as PK, has over 25 years of industry experience.

Before joining GroupM, Kumar was associated with companies like Pepsi, The Hindu, The Media Edge & McCann Erickson.

Kumar is currently President of AAAI for the 2022-23 term.

The exchange4media Group formulated enba in 2008 with the sole objective of recognizing the best in television news. The awards recognise and acknowledge industry leaders who are responsible for shaping the future of television broadcasting in India. This year, ENBA is in its 15th edition. The grand jury this year will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

In the previous editions, the enba jury was led by Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr Kiran Karnik – Former President – Nasscom, Dr Nasim Zaidi - Former Chief Election Commissioner of India, SY Quraishi – Former Chief Election Commissioner of India, N Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-Chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India. 

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Free Dish e-auction: 25 channels pick up slots in rounds 2 & 3 

According to sources, the pubcaster has mopped up approximately Rs 409 crore in these two rounds; bidding for remaining rounds to continue on March 20

By Sonam Saini | Mar 20, 2023 8:01 AM   |   2 min read

TV

Prasar Bharati continued the e-auction for vacant MPEG-2 slots on DD Free Dish on the weekend with 25 channels picking up slots in rounds 2 and 3.

The starting receive prices for each round were Rs 16 crore and Rs 13 crore, respectively. 

While the buckets eligible for bidding in round 2 were A+, A, B, C, D and R1, round 3 saw bidding for buckets A, B, C, D and R1. 

According to industry sources, the pubcaster has mopped up approximately Rs 409 crore in these two rounds. 

The channels that secured slots in round 2 were Sony Wah (Rs 20.25 crore), Star Gold Thrill (Rs 17.85 crore), Colors Cineplex Bollywood (Rs 17.5 crore), Shemaroo Ashirwad (Rs 17 crore), Dangal 2 (Rs 16.8 crore), Shemaroo Umang (Rs 16.65 crore), Nazara (Rs 16.6 crore), Manoranjan Prime (Rs 16.7 crore), Goldmine Bollywood (Rs 16.7 crore), Ishara (Rs 16.75 crore), Goldmines (Rs 16.9 crore) and B4U Music (Rs 17.05 crore). 

The channels that picked up slots in round 3 were Showbox (Rs 17.05 crore), Dil Se (Rs 17.05 crore), Filmachi (Rs 16.7 crore), Goldmines (Rs 15 crore), Aastha Channel (Rs 15.05 crore), Times Navbharat (Rs 15.15 crore), another slot by Goldmines (Rs 15.35 crore), B4U Bhojpuri (Rs 15.05 crore), Bhojpuri Cinema (Rs 15.1 crore), News Nation (Rs 15.05 crore), Aaj Tak (Rs 15.1 crore), 9XM (Rs 15.2 crore) and Movie Plus (Rs 15.2 crore).  

In round 1, 33 channels bought slots for over Rs 538 crore.

The pubcaster has so far earned around Rs 947 crore from the e-auction. The remaining rounds (i.e. rounds 4, 5, 6 and 7) will go up for bidding on March 20.

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Madan Bahal joins enba jury panel

Bahal is the Co-Founder and Managing Director of Adfactors PR

By exchange4media Staff | Mar 18, 2023 8:30 AM   |   1 min read

enba

Madan Bahal, Co-Founder and Managing Director of public relations firm - Adfactors PR, has joined the exchange4media News Broadcasting Awards (ENBA) jury panel. Over the past 25 years, Bahal has served as a lead communication counsel in many of the milestone events of Corporate India, including fundraises, M&As, disputes, litigations, issues, and crises.

Bahal is known for providing leadership to the Indian PR industry during major events such as the global financial meltdown in 2008, and the two years of the Covid-19 pandemic. He is also a member of the governing council of The Yoga Institute, Mumbai – the world's oldest body of organised yoga teaching.

In September 2022, the Arthur W. Page Society inducted Bahal into its Hall of Fame. In October 2020, PRovoke recognised his firm Adfactors PR as one of the seven global agencies of the decade.

enba was formulated by the exchange4media Group in 2008 with the objective of recognizing the best in television news, and for rewarding industry leaders who have shaped the future of television broadcasting in India. This year, enba is in its 15th edition, and the jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

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