IIPM

Compared to the previous year, total expenditure of Zee has risen by 35%, amounting to Rs.3.2 billion in the quarter ending March 2006 and operating profits have declined by 38% due to augmented investments in newer businesses like cable & DTH. Zee seems to be putting too many eggs in the DTH basket, whose revenues they anticipate to touch Rs.10 billion over the next two years. But cable & DTH require patience to reap long term benefits. Moreover, Sky TV’s entry will make the going tougher. Of course, it is still early to declare a winner in the TRP war. Finally, unless Zee’s newspaper foray generates revenues, and the cable business gets consolidated, investments that are needed could easily cross all limits! For the moment, Chandra seems to be having a ball, since his vision is there for all to ‘Zee’! And perhaps again, it is time to say, “Shabaash Chandra!

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Source: (Business& Economy), IIPM; Editor: Arindam Chaudhuri