Here is a list of some recent Strategic news in the M&E space.
Reliance Entertainment funds David Linde’s film company
Reliance Entertainment will fund David Linde’s yet to be named venture, which is expected to serve as a platform for film production and financing. The company will have a global distribution structure, combining studio and independent distribution.
The new entity is specifically designed to leverage Linde’s experience in successfully bridging studio and independent production and distribution while managing and building existing and start-up companies.
Linde has simultaneously concluded a production and distribution agreement with Universal Pictures for the new company, whereby the latter will have the first option to co-finance each developed project and distribute the films in the US and other significant international territories.
It will maintain a network of direct output collaborations in several key territories across the globe outside of its studio-distributed territories. Reliance will handle the distribution of the films in India1.
Network18 completes restructuring
The Network18 Group has completed the process of realigning its businesses into two focused entities — Network18 and TV18. The newly constituted TV18 (current listed entity IBN18 Broadcast after being renamed TV18 Broadcast) will operate all of the group’s TV broadcasting and distribution assets.
These include the CNBC TV18, CNBC Awaaz, CNN IBN and IBN 7 channels; a 50% stake in Viacom18, which houses a portfolio of entertainment channels — Colors, MTV, Nickleodeon, and VH1 — and its filmed entertainment business Viacom18 Motion Pictures; a 50% stake in IBN Lokmat and a 51% stake in AETN18.
Network18 will operate all the group’s digital and ecommerce assets, including Moneycontrol.com, In.com, HomeShop18.com and BookMyShow.com, and publications including Forbes India.
In addition, it will continue to own a controlling interest in TV18 and house equity interest in Infomedia18, NewsWire18, Yatra, DEN Networks Limited and Capital18 portfolio companies. All its allied operating businesses, including Sport18 and E18, will remain with Network182.
Bharti Airtel and BigFlix collaborate to launch online movie service
Bharti Airtel has launched Airtel Movies, an online on-demand digital video service, in collaboration with the Anil Dhirubhai Ambani Group company BigFlix. Airtel Movies will be an on-demand digital video library with original DVD-quality content that will be made available to Airtel broadband customers in the form of an add-on monthly pack.
Customers will be able to access 500 movies, along with 100 TV shows, 100 trailers and 100 music videos for INR229 a month on their computers, laptops or tablets at home3.
Balaji Telefilms plans film fund
Balaji Telefilms plans to launch a film-focused private equity (PE) fund, which will invest in Hindi-language films, TV content and educational media.
It intends tapping foreign investors and affluent individuals to raise money and has applied for the registration of a venture capital (VC) fund to the Securities and Exchange Board of India (SEBI).
The company's intention is to follow the UTV model, which entails gathering a group of large investors, floating the fund and then pursuing major stars and projects4.
Endemol enters film production business
Endemol, the international TV production and distribution company that began producing Hindi-language programs in 2006, has decided to enter the film production business.
The production house has acquired the remaking rights of Malayalam film Traffic, which is considered to be one of the highest-grossing Malayalam projects so far this year.
Endemol has appointed ex-Studio18 Domestic Distribution Director Aman Gill to spearhead all film production activity for this project5.
Rajat Sharma to launch premium English news channel
Rajat Sharma's broadcasting company, Independent News Service (INS), will launch its second 24-hour premium English-language news channel by October 2011. INS obtained the MIB's permission to launch its second channel in 2009. However, the launch of the channel was delayed due to the economic slowdown6.
More on strategic developments
1"Reliance Ent joins hands with David Linde," The Times of India, 26 May 2011, via Dow Jones Factiva, © 2011 The Times of India Group.
2"Network18 completes re-organization," Indiantelevision.com, 13 June 2011, via Dow Jones Factiva, © 2011 Indiatelevision.com.
3"Bharti Airtel launches Airtel Movies," afaqs!, 6 June 2011, via Dow Jones Factiva, © 2011 Banyan Netfaqs Pvt. Ltd.
4"Balaji Telefilms Plans Film Fund," The Wall Street Journal Online, 6 June 2011, via Dow Jones Factiva, © 2011 Dow Jones & Company, Inc.
5"Endemol forays into film production," Indiantelevision.com, 16 May 2011, via Dow Jones Factiva, © 2011 Indiatelevision.com.
6"Rajat Sharma to roll out English news channel," Media Mughals, 4 June 2011 via Dow Jones Factiva, © 2011 Media Mughals.
