Star to focus on radio and multi-media arena
By Venkatachari Jagannathan | 13 Aug 2001
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"The Star group, from being a television company, is now getting into other areas like multi-media and radio. In next two months we will be associated with five or six more radio stations," said Mr. Peter Mukerjea, chief executive, Star India.
It may be recalled that Star has tied up with Music Broadcast that owns the country's first private FM radio station "Radio City" to supply content and provide sales and marketing support. Music Broadcast has FM radio licenses for five more cities.
Star's other multi-media activities include Internet portals, interactive television and direct-to-home television. Star recently invested $10 million in indya.com. The other portals in which Star has put its money are e-gurucool.com, indiaproperties.com, and baazee.com.
Star's reasoning for investing in portals at a time when the industry is witnessing bloodshed is to look at synergies with its existing business activities. "Today success in portal business is measured in terms of how much less loss one incurs and not how much money one makes," he added.
In addition it is said that the Hong Kong based media group plans to invest around $ 400 million in its DTH project.
Meanwhile, on its core business viz television broadcasting, Star recently purchased 51 per cent stake in Vijay TV, a Tamil channel. (See Star to twinkle in south but from behind) Star acquired the stake from the UTV group for an estimated Rs. 20 crore. Both Mr. Mukerjea and Ronnie Screwvala, chairman, UTV group refused to comment on the figure.
With this acquisition Star gains a foothold in the Rs.170 crore Tamil satellite channel market. When asked as to the reason for getting into the Tamil channel market that is dominated by Sun TV instead of other southern language markets Mr. Mukerjea said,
"The opportunity to build business in Tamil market is good." However the group doesn't have any plans to starting channels in other regional languages.
Again when pointed out to the deep relationship that Sun and Jaya TV enjoy in the movie world and its importance in buying rights Mr. Ajay Vidyasagar, general manager, regional channels of Star India and head Vijay TV added, "Well that problem is there to be addressed."
According to Mr. Vidyasagar Vijay TV has a library of around 1,500 movies. The channel due to financial crunch was not buying any movie rights for the past one year, said Mr. Screwvala. With Star's investment the channel hopes to finance new serials, soaps and movies.
"The channel will be offered nationwide and also as a part of our international package," remarked Mr. Mukerjea. It may be remembered that Star has taken 26 per cent stake in Hathway Cable a leading cable operator in the country. However Mr. Mukerjea denied any plans of making the channel pay one, even selectively in some cities.
The take over of controlling stake in Vijay TV will result in entire management getting reshuffled. In the process Mr. Rohit Adya, the channels erstwhile chief executive is being shifted to some other business group of UTV.
It may be recalled that Star has tied up with Music Broadcast that owns the country's first private FM radio station "Radio City" to supply content and provide sales and marketing support. Music Broadcast has FM radio licenses for five more cities.
Star's other multi-media activities include Internet portals, interactive television and direct-to-home television. Star recently invested $10 million in indya.com. The other portals in which Star has put its money are e-gurucool.com, indiaproperties.com, and baazee.com.
Star's reasoning for investing in portals at a time when the industry is witnessing bloodshed is to look at synergies with its existing business activities. "Today success in portal business is measured in terms of how much less loss one incurs and not how much money one makes," he added.
In addition it is said that the Hong Kong based media group plans to invest around $ 400 million in its DTH project.
Meanwhile, on its core business viz television broadcasting, Star recently purchased 51 per cent stake in Vijay TV, a Tamil channel. (See Star to twinkle in south but from behind) Star acquired the stake from the UTV group for an estimated Rs. 20 crore. Both Mr. Mukerjea and Ronnie Screwvala, chairman, UTV group refused to comment on the figure.
With this acquisition Star gains a foothold in the Rs.170 crore Tamil satellite channel market. When asked as to the reason for getting into the Tamil channel market that is dominated by Sun TV instead of other southern language markets Mr. Mukerjea said,
"The opportunity to build business in Tamil market is good." However the group doesn't have any plans to starting channels in other regional languages.
Again when pointed out to the deep relationship that Sun and Jaya TV enjoy in the movie world and its importance in buying rights Mr. Ajay Vidyasagar, general manager, regional channels of Star India and head Vijay TV added, "Well that problem is there to be addressed."
According to Mr. Vidyasagar Vijay TV has a library of around 1,500 movies. The channel due to financial crunch was not buying any movie rights for the past one year, said Mr. Screwvala. With Star's investment the channel hopes to finance new serials, soaps and movies.
"The channel will be offered nationwide and also as a part of our international package," remarked Mr. Mukerjea. It may be remembered that Star has taken 26 per cent stake in Hathway Cable a leading cable operator in the country. However Mr. Mukerjea denied any plans of making the channel pay one, even selectively in some cities.
The take over of controlling stake in Vijay TV will result in entire management getting reshuffled. In the process Mr. Rohit Adya, the channels erstwhile chief executive is being shifted to some other business group of UTV.
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