Balaji Telefilms and Star call it quits

20 August 2008

Mumbai: Rupert Murdoch owned Star Group and Balaji Telefilms Ltd. have decided to part ways.

The two companies reached an understanding to terminate agreements between them, including the April 2007 arrangement about the regional languages joint venture.

In April 2007, the two companies had set up a joint venture to create a leading television network of regional language general entertainment channels, initially targeted at the fast growing South Indian market. The joint venture was 51 per cent owned by Star, and was based out of Chennai. (See: STAR-Balaji Telefilms joint venture to launch regional language channels in South India)

The split marks the end to a four-year old association between Balaji Telefilms and the Star group under which an associate company, Asian Broadcasting FZ-LLC held 25.99 per cent in the TV celebrity Ekta Kapoor's entertainment content provider.

In a statement, Balaji Telefilms announced that the relationship between BTL and Star as broadcaster and content provider would not be affected. It said that the content supply agreements between the two for various shows produced by BTL would be modified to remove restrictions imposed on BTL pertaining to the exclusivity on certain prime time slots.

The statement said that all six existing BTL shows on air with the broadcaster's Star Plus channel will continue on mutually agreed terms, and that the two parties have agreed to start working on a new show to replace an existing show. The new show would be launched before the end of November.