Another First By Network18! Get ready for some “Glitz”
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After lying low for months, here comes a killer blow from Network18. It seems that the media and entertainment conglomerate Network18 Media and Investments Ltd is venturing into film exhibition. And if you think that it’s all hogwash and the rollout may take ages, sample this – It is opening its first multiple-screen movie theatre in New Delhi on 27 June.
Network18 is one of India’s leading full play media conglomerates with interests in television, print, internet, filmed entertainment, mobile content and allied businesses. It already rules the television with leading business news television channels, CNBC-TV18 and CNBC Awaaz. Add to that Web18 -India’s largest Internet player and Newswire18- India’s leading real time financial information and news terminal and you have the most potent and powerful media house in India. Now it is planning to extend it’s dominance to the larger screen with this move.
The company plans to start a chain across India in the next 12-16 months. And that’s not all! It is planning a nationwide rollout according to Sarbvir Singh, managing director of Capital18, Network18’s venture capital and private equity arm. However they refused to divulge any information on the amount of capital infusion they are planning to make [trying to be as enigmatic as ever].
Network18 is going to position their multiplexes in different manner compared to the existing players. They are planning to focus on both metros and smaller cities. In addition to that, they will be wooing target audiences across income groups which goes very much against the current industry norm [ where everyone is aiming for the upper middle class.. No surprises I guess given their common tendency to focus on increasingly fattening bottom-lines!]. The movie halls will be branded as “Glitz”. Besides, the cinema exhibition business will be handled by a separate corporate entity called Stargaze.
To start with, the company will lease and operate existing cinema halls across the country but may later look at other operational models [Hmm.. A smart way to bring down the overheads I suppose]. Network18 entered film production, acquisition, syndication, marketing and distribution business in 2006 by starting a division called Studio 18.
In 2007, the firm’s portfolio of films included popular titles such as Honeymoon Travels Pvt. Ltd, Namastey London, Welcome, Jab We Met, and Cash [Quiet a few hits if you ask me..]. Films currently under production include Singh is Kinng, Little Zizou, and Fruit and Nut. The cinema exhibition initiative complements Studio 18’s business.
However, with their entry into film exhibition Network18 has entered into highly competitive waters. It faces stiff competition from Reliance Anil Dhirubhai Ambani Group owned Adlabs Ltd [ need I tell you anything about this guy’s deep pockets!], Delhi-based PVR Ltd, Pritish Nandy Communications’ Inox Leisure Ltd and Pyramid Saimira Theatres Ltd, among others.
But the competition is easily overshadowed by the humongous opportunities available in this space. According to a study by PriceWaterhouseCoopers, filmed entertainment business, which was worth Rs8,500 crore in 2007, is set to touch Rs17,500 crore by 2011, growing at a mind-boggling rate of 16% every year. And if that’s not all, sample this - domestic box office collection continues to be the largest contributor to the revenues of the film industry at 74%. So Network18’s clearly making some right moves at the right time! What say?
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woa awesome… but i hope they give tics for cheap
@ Lanuk,
Shouldn’t be a problem given that they are targeting all income groups.Though at the end of the day, everyone wants cheap tickets ;),don’t they?
who will benifi from this only the director and employees will benifit… more shares will be issued to directors at discount to market prices and then sell in open market as done currently. after rights issue got over directors have sold shares in open market and sebi is sleeping over this…. company is doing business on small investors money but beniffiting its directors by increasing remuneration and heafty esops to employes…….