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Mukta Arts floats television production subsidiary

17-September-2002
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Mukta Arts floats television production subsidiary

Mukta Arts has today floated a television production subsidiary, Mukta Prime’3 Teleworks. The outfit has already commenced shooting for its first project, Archana Aaa-Haa, on September 15. The programme is expected to go on air from the first week of October.

According to the company sources, the entry into television production is part of its overall strategy to de-risk its previous business model of focussing only on blockbusters.

According to industry sources, Mukta Prime’3 Teleworks plans to develop drama series, talk shows, serials, sitcoms, and telefilms. The company’s first project is a film-based comedy show, Archana Aa-Haa. It will be telecast on Zee TV from the first week of October.

According to media analysts, Mukta Arts is getting into a cut-throat, competitive, and fragmented segment, where the existing players are fighting for wafer-thin margins. To be in the TV production business, it needs to have volume growth, which at this point of time is very difficult for Mukta to build. Moreover, by getting into this business, it means blocking their working capital for sometime as the business will not add to the bottom line in the immediate future.

A recent report of JM Morgan Stanley on television content providers indicates that the television software segment has high growth potential over the long term.

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