Integrated media and entertainment company UTV Software Communications sees high growth potential in the film and TV business. & #BANNER1 & # Currently, fifty per cent of its revenues come from the television business, while film production and distribution follows next at 36 per cent, and allied content - which is dubbing, post production and ad films - contributes 13 per cent.
Over time, though, the company hopes to see the film business increase its share to about 45 per cent, while TV revenues may hover in the region of around 45 per cent, and allied content will contribute a share of about 10 per cent.
One reason for the buoyancy in the film business is due to the seven to eight releases in the next fiscal, says Ronald D'mello, director, operations & finance, UTV Software Communications. Of this, the most ambitious is the one with Aamir Khan titled 'Rang De Basanti', which is slated to be launched in the last quarter of 2005-06.
Also on the list is a two-movie deal with the STAR group, which was signed in August last year. UTV was paid a sum of Rs 25 crore to produce the films and retains the theatrical, music and home video entertainment rights of the films. STAR, on the other hand, has the worldwide TV rights of the movies including satellite, cable, terrestrial and streaming through Internet/broadband etc.
UTV has also inked a deal with Miramax for the domestic theatrical, DVD and TV rights of 138 movies for a lump sum of $800,000. This will further boost its revenue model, says Ronnie Screwvala, CEO, UTV Software Communications.
On the TV front, the company views animation as a huge growth area, though fiction and non-fiction drive the business at the moment. Currently, UTV has five shows on STAR - three on STAR Plus (Kehta Hai Dil, Shararat and Bhabhi) and two on STAR One
(Special Squad and Family Business) - apart from nine on Hungama TV. It has a family drama on Doordarshan titled Meher and two business shows - Back to the Floor and Business Bytes - on BBC. It is looking to launch a show on ZEE this year and is slated to "restart a daily serial" on Sony from April 1, 2005.
Even as it firms up its film and TV plans, UTV is readying itself for an entry into the capital markets on February 21 with a public issue of 6.99 million equity shares for a face value of Rs 10 each. Of this, 4.5 million equity shares are a fresh offer, while 2.49 million shares are being offloaded by stakeholder CDPQ. The proceeds of the offer, which the company estimates to be about Rs 58-crore, will be utilised to fund Hungama TV (to the extent of Rs 10 crore), its movie business (Rs 30 crore) and upgrade its post-production, office and studio facilities.
© 2005 agencyfaqs!