STAR-Balaji Telefilms joint venture to launch regional language channels in South India
20 Apr 2007
Mumbai:
Balaji Telefilms Ltd has announced the setting
up of a joint venture with STAR Group Ltd (STAR) to
create a leading television network of regional language
general entertainment channels, initially targeted
at the fast growing South Indian market. The joint
venture, 51-per cent owned by Star and 49-per cent
by Balaji Telefilms, will be based in Chennai.
The decision was taken at the meeting of the board
of directors of the company on April 19, Balaji Telefilm
said in a filing with the Bombay Stock Exchange (BSE).
Under the joint venture, the two companies will combine
their resources to infuse Vijay TV with the company
content.
DirecTV, owned by Rupert Murdoch''s News Corporation,
owns Vijay TV and broadcasts Star Plus, Star One,
Star News and Vijay channels in the US market.
The joint venture also targets launching a Telugu
channel by the last quarter of the year. Channels
in Kannada, Malayalam and other key regional languages
are planned for launch within the next two to three
years.
Star, the leading television network in the Hindi
market, will be responsible for the operations of
the joint venture channels. Balaji, which has been
creating top-rated shows in various languages for
the past eight years, will produce regional language
shows exclusively for the joint venture.
"We are excited about this opportunity to strengthen
our relationship with Star. We believe that combining
the expertise and resources of the two companies will
enable us to create the leading regional language
TV network in the country. This new partnership also
helps realise our ambitions to go upstream by taking
a stake in the broadcast business. I am confident
that our investment in this joint venture will generate
significant value for our stakeholders," Jeetendra
Kapoor, chairman of Balaji Telefilms, said.
Shobha
Kapoor, currently the managing director and chief
executive of the company, has relinquished her role
as CEO in favour of. R Karthik, currently president,
strategy and business development. Mrs.Kapoor will
continue as managing director and Karthik will be
the CEO of the company, the release added.