Zee Telefilms is looking into restructuring of its businesses that could include hiving off its distribution set-up into a separate entity.
NEW DELHI: Entertainment major Zee Telefilms is looking into restructuring of its businesses that could include hiving off its distribution set-up into a separate entity.
“It can be a possibility,” a senior official of the company said when asked whether the company was considering hiving off its cable distribution arm Siti Cable into a separate company.
The statement by the official, who did not wish to be named, assumes significance in the wake of the company’s notice to the stock exchanges earlier this week that a meeting of its board of directors will be held on March 29 to consider, among other things, a “corporate restructuring.”
In fact, the company’s scrip has been moving northwards ever since news of re-organisation. On Friday, the stock gained 2.7% and finally ended the day at Rs 242.70. The company, which broadcasts as many as 26 channels, has also been gaining in market share of late.
Encouraged by this, it has announced that it will hike advertisement rates by 30-40% from the next fiscal.
Apart from the cable distribution arm, Zee has also witnessed growth in its DTH division where it has around a million subscribers. The DTH business — Dish TV — is run and managed by another company, ASC Enterprise, which has a content supply agreement with Zee Telefilms.
The official said Zee’s DTH network could soon carry the content of One Alliance, which carries the Sony bouquet of channels. “It can be very soon,” he said.
If this is done, only the Star bouquet will be conspicuous by its absence on Dish TV, though it could also be expected on the platform once Star launches its own DTH platform this year.
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