Would Zee Media & CNN Tango?

News space is buzzing these days – more so Television News Channels – most of it courtesy Lalitnama, and now Vyapam Scam shrouded in the mysterious deaths of 25 accused and witnesses.

However, it is not only the news on news channels that is grabbing eyeballs but the channels themselves too. Most of the action is happening in English News Channel space. There is a TRP fight as furious as ever, Headlines Today has metamorphosed into India Today and if sources are to be believed, a leading English News Channel intends sprucing up its online presence.

While it has been a known fact for some time that CNN and TV18 have decided to part company, timing was in the speculative space. The press release issued by Turner corporate communication put the speculations to rest by issuing a press release yesterday that announced an amiable parting of way in January 2016. The 10-year licence agreement for CNN IBN comes to an end then.

Would IBN go alone or scout for a new global partner remains to be seen. As for CNN, the grapevine states that it is all set to tango with Zee Media – though it is not yet confirmed by the either party.

Industry insiders claim that  Zee Media Corporation Ltd (ZMCL) is all set to launch an English News Channel to complete its bouquet of news channels – which at the moment has a news channel in Hindi, a number of regional news channels and a Hindi Channel in Business News space. It also has a print publication now in form of DNA.

The only news space where it still does not have a presence right now is an English news channel, and the buzz has been that it would launch one sooner than later. Post its board meeting on May 22nd, 2015, ZMCL informed BSE India: The Board of Directors of the Company at its meeting held on May 22, 2015, inter alia, in order to conserve the resources for future business requirements, have decided not to recommend any dividend on the Equity Shares of the Company for financial year 2014-15.

Is this future business requirement launch of an English news channel, one can only guess.

Now why would CNN and ZMCL look to partner each other? As the news channel (if it is being launched) would be a newbie, CNN can come in at the strategy level itself and the synchronisation in the vision of two companies can be much better. Second, while the existing English news channels are well entrenched – it is a matter of debate whether connect with a global news channel would change their fortunes in anyway. Not so true in case of a new news channel, where the tie-up can sure make a difference.

With India making the right moves in the field of economic and social development, and steadily rising as a global powerhouse, CNN would not want to leave a market with a lot of action. At the moment tie-up between ZMCL and CNN appears to be win-win for both. Would it really happen? We would rather not get into the guessing game here.

Press release issued by Turner Corporate Communication · CNN Communications

TV18 and CNN will be successfully concluding their 10-year licensing arrangement in January 2016 for CNN IBN.

The conclusion of the arrangement will enable each company thereafter to chart its own growth trajectory independently in one of the most dynamic, complex and fast growing markets in the world.

A.P. Parigi, Group CEO, Network18 said “The last decade has seen a lot of momentum in the Indian media industry and has been particularly exciting for us. During this time we witnessed two media houses coming together to redefine the way news is presented to a demanding audience; we at TV18 have benefited from this relationship with CNN. At the launch of the channel, TV18 was a relatively small organization; that has changed now.  Network18 has grown from 2 news channels in 2005 to 17 news channels in 2015. Today, we have the largest footprint in the current affairs, regional and business news space in India.  The TV18 line-up of channels today are well established and highly regarded in this dynamic, complex and challenging environment.”

Rani Raad, Chief Commercial Officer, CNN International said, “We are very proud to have created CNN IBN in our decade long partnership with TV18. The channel was a pioneering initiative that combined the best of CNN’s global expertise with TV18’s journalistic and newsgathering capabilities. We have truly valued this long standing partnership.”  He further adds, “As the number one international news brand in Asia Pacific and the rest of the world, and the winner of multiple prestigious awards, CNN International, continues to lead and serve consumers in India with the best of global news content across multi-platforms.“