Sun TV to spend Rs 100 cr in 2010-11 on content

Sun TV Network Limited, south India’s largest television networks, has set aside Rs 100 crore for financial year 2010-11. The company aims to spend this mostly on acquiring content, especially movie rights.

Speaking to reporters after announcing the company’s results in Chennai, Ajay Vidyasagar, chief operating officer, Sun TV Network Ltd, said, that presently 60 per cent of the revenues to the television network is contributed by the Tamil and Malayalam TV channels, while the rest 40 per cent is contributed by Telugu and Kannada.

“Our capex will also be in the same percentage. Majority of this will go on acquiring content, especially satellite rights for movies,” he said.

The network presently operates around 20 television channels in four languages including Tamil, Telugu, Kannada and Malayalam, and in various category including General, Comedy, News, Music and others.

As a network the group has a marketshare of around 60-64 per cent in South India, which was 54-56 per cent three years ago, claimed Vidyasagar. The network also airs 43 FM radio stations across India.

Commenting on company’s performance, he said, for year-ended March 31, 2010, the company reported a net profit of Rs 567.38 crore compared to Rs 437.11 crore during the same period last year.

The company’s total revenues rose to Rs 1,437.52 crore from Rs 1,091.52 crore a year ago.

“The growth was driven by our advertisement revenues which grew 38 per cent and subscription revenues which grew 60 per cent,” said Vidyasagar.

He added, presently 60 per cent of the revenue comes through advertisements and 40 per cent through subscription.