Sun, Zee outrank Star as leading broadcasters in South Asia: MPA

According to the MPA report, both Sun Network and Zee Group are ranked first and second respectievly in the pecking order of leading pay broadcasters in the region, while Star Group has moved down to the fourth position after Korea's On Media.

The MPA rankings are based on EBITDA (earnings before interest, taxes, depreciation and amortization).

According to the rankings, Sun TV Network's first position was based on an EBITDA of $142 million (Rs 569 crore) for the financial year 2007-08.

Zee Entertainment was ranked second with an EBITDA of $138 million (Rs 553 crore), followed by Korea's On Media with $105 million (Rs 420 crore). Star Group is ranked fourth with an EBITDA of $103 million (Rs 413 crore).

"Star Group's standalone EBITDA for 2007-08 (financial year ended June 30) is lower than that of Sun and Zee if you look at the unconsolidated numbers, that is minus the earnings of its equity-accounted associates such as ESPN Star Sports, Phoenix Satellite TV, MCCS, ANTV, Hathway and Tata Sky," Vivek Couto of MPA said.

However, once clubbed, Star Group will move up to the third place in the Asia Pacific region with an EBITDA of $135 million (Rs 541 crore), Couto added.

According to MPA, Star Group's margins have been under pressure for some time due to an erosion of its earnings in India, its largest market in Asia, due to the higher content costs and competition from rivals such as Zee TV. Star has also been suffering losses in the China market and this has contributed to a slowdown in its growth.

A comparison in the turnover of Sun TV Network, Zee Entertainment and Star Group highlights a slowdown for Star Group. In FY2006-07, Star Group's sales turnover stood at $570 million and Zee Entertainment's turnover was $329 million.

But Star Group (minus its minority partners including Hathway, Tata Sky and ESPN Star Sports) grew only by about 6 per cent in 2007-08, whereas the sales turnover of Zee Entertainment jumped by 33 per cent to $445 million.