We aim to reach 1 billion viewers: Punit Goenka

Interview with MD and CEO, ZEE

Subhash Chandra-promoted Zee Entertainment Enterprises is now a $7-billion global entertainment company. The media group has a vision to reach over 1 billion viewers across the globe. It is already present in five continents in 169 countries, reaching over 670 million viewers. Punit Goenka, managing director and chief executive, talks of the plans and strategies with Gaurav Laghate. Edited excerpts.

Zee's international business is seeing softening in terms of revenue generation.  Why?
Only subscription revenue in the international markets has softened, not advertising. Actually, the advertising revenue has increased, and the subscription has remained flat. The reason is simple; it’s an ageing audience. The third and fourth generation Indians don't have the same connect. That is the natural impact one will see.

But at the same time, your competitors are expanding in international markets and showing growth...
It's obvious. Their base is small, so they will be able to show growth. We were capturing almost 80 per cent of the market. And it’s still a big enough market. Almost 13 per cent of our top line comes from international business. Anybody would like to take a piece of that market. Given that content is already with you, the only cost is distribution cost.

How do you intend to increase your international reach?
In the next three years, our focus will be to reach out to 1 billion viewers across the globe. Right now, we are focused on the Middle East market with two Arabic channels Zee Alwan (general entertainment channel) and Zee Aflam (movie channel). We will look at localised content and are currently studying markets like South Africa, Indonesia and Malaysia for the next phase of expansion.

You have been bullish on niche channels. Ten Golf, ZeeQ and now refurbished Zee Khana Khazana. Do you see enough monetisation opportunities?
Zee has always been a pioneer in this space. We introduced the food genre in India with the Khana Khazana show. The launch of niche channels now is largely linked with the monetisation opportunities. Khana Khazana, for instance, is priced at Rs 30 per month on a la-carte basis per subscriber. There will be ads, but those will be very few. Other niche channels Ten Golf (Rs 200 per month) and ZeeQ (Rs 82 per month) are also premium offerings.

So, you are looking at only subscription-led model for these channels?
All niche channels will be subscription-driven. Advertising is for mass media and not for the niche market. For example, the whole golf market is of 200,000 golfers, how much will you advertise to them. Clients also are limited, therefore the airtime will also be limited.

Any new channels you are planning to launch?
We are studying the market for a possible infotainment channel.

Sri Lanka cricket rights are up for renewal. Will you be bidding for that? And, with India cricket is not there, what will be the sports strategy?
Yes, we will bid for Sri Lanka rights. And, for India rights, we did not even bid. It was never our strategy in any manner.

There is rumour that your distribution joint venture with STAR India will break soon...
Mujhe to kisi ne nahi bola (Nobody told me this). My view is that Media Pro's purpose was to take care of under declaration and the digitisation process. I believe both the parties are still committed to both the causes. The way I see it, when there is a successful entity, there are people who want to break it. There will be more enemies than friends on your path.