Chernin Group’s CA Media has bought a 49% controlling stake in Endemol India. Though the amount of money changing hands was not disclosed, Industry experts peg the figure at roughly Rs. 180 –200 Crores (@ US$ 35 Million) for a 49% stake. “Endemol would not let go of 49% share for a small sum” were the words of Deepak Dhar MD Endemol India.
What has Endemolg got? Well, the company manages to churn out 2,000 hours of programming every year. Additionally, judging by the shows, the media company has a stronghold over the reality shows market. Dhar has also confirmed that Endemol is seriously looking into regional content too. With TV’s becoming smarter & people adopting faster broadband internet, we can expect more such mergers in the future. Production & distribution of quality content is the need of the hour.
Endemol plans to use the fund infusion for to get into film production & to buy-out smaller production units. A while ago we saw how online retail industry was witnessing a phase of consolidation. Wonder if the media content industry too will undergo the same? The company Indian arm contributes less than 5% to its global revenue. Yet, over the past 7 years (since its launch) the subsidiary company has grown into a Rs. 120 Crores (US$ 23 Million) firm on its own.
How will this strategic partnership affect Indian content? So share your views