Following TRAI directives, ZEE and Star to exit distribution JV MediaPro

Zee Turner Limited (Zee Turner) and Star Den Media Services Pvt. Limited (Star Den) announced their intention to discontinue the distribution of their channels through the three year old distribution joint venture Media Pro Enterprises India Pvt. Ltd (MediaPro), pursuant to the change in regulation regarding aggregators. TRAI’s Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Third Amendment) Regulation, 2014 dated February 10, 2014, does not allow aggregators to bundle channels of multiple broadcasters in one bouquet. In light of this new development, Star Den and Zee Turner have decided to discontinue the distribution of their respective channels through the 50:50 distribution joint venture, MediaPro.

Going forward, ZEE and Star would set up their independent Affiliate Sales team for their respective channels. The latest tariff order dated March 31, 2014, which permitted the inflation - linked hike of 27.5% in Reference Interconnect Offer rates (in two stages), is likely to provide a positive fillip to the subscription revenues.

Punit Goenka, Managing Director & CEO, Zee Entertainment Enterprises Limited said, “We had created this Joint Venture to address various anomalies in the analog market, curb piracy and introduce transparency for the benefit of all stakeholders. I must say that we have been very satisfied with the outcome of the partnership. In the last three years, with DAS getting implemented, India is truly on the path to digitization. First two phases of DAS have already been implemented. Given the new regulation, Uday and I have taken a call to continue the business at an independent level. I wish our JV partners all the very best in their future endeavours.”

Uday Shankar, CEO, Star India Private Limited said, “MediaPro has been a truly delightful and path breaking partnership. Punit and I created MediaPro with the objective of accelerating digitization, promoting transparency and introducing best practices in distribution. Thanks to the commitment of both parties the JV has delivered exceptionally well on each of these. I am proud to say that MediaPro also led the industry consensus for the most efficient way of moving to a digital domain. This in turn allowed us to offer better content to our viewers. In the light of new regulation, both partners have decided to build independent affiliate sales. I take this opportunity to compliment the entire MediaPro team lead by Arun Kapoor for creating a best – in - class organization that helped pioneer digital transformation of cable.“