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Breaking News : Zee News Limited may not shut down 'Zee 24 Gantalu'
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#1
Zee News Ltd to shutter Telugu news channel

Zee News Ltd (ZNL) is retreating the Telugu news market. Zee 24 Gantalu has decided to close down next month as it struggled to become economically viable in a crowded marketplace where there are too many politically-oriented channels.

"24 Gantalu will close down on 20 September. There are 14 Telugu news channels operating in that market and two more are launching. They are politically driven and it does not make sense to continue in that market," a source familiar with the development said.

The TV Telugu news ad market is pegged at Rs 1.2 billion. The market leader TV9 takes away a major chunk of this amount, according to an industry source. Price wars are rampant, making channels sell to advertisers at miserable rates.

"The entire Telugu TV news business is becoming unviable because of too many players and abnormally low ad rates. Other interests rather than business seems to be the primary motive," says a senior news channel executive.

ZNL's decision also comes ahead of its plans to launch an English-language general news channel that will consume heavy capital. The closure of 24 Ghantalu will help cut down ZNL's losses from new businesses and ease pressure on the company's operating profit if it goes ahead with the launch of the English channel.

Indiantelevision.com had reported that ZNL is planning to launch an English news channel towards the exit quarter of the fiscal as digitisation settles in the four metros.

The operating loss of 24 Ghantalu in FY'12 stood at approximately Rs 140 million, the source said.

ZNL had reported losses of Rs 227.4 million on a revenue of Rs 131.9 million for the fiscal from its new businesses that include Zee News Uttar Pradesh/Uttarakhand and 24 Gantalu.

"If the English channel launch is on, the shutting down of a loss-making channel will be seen as a positive move. It will soften ZNL's pressure on Ebitda from the launch of an English news channel that will consume anywhere between Rs 2.5-3 billion over the first three years," a media analyst said on condition of anonymity.

ZNL had reported Ebitda of Rs 533.5 million in FY'12 on a consolidated operating revenue of Rs 3.07 billion. The company runs a cluster of channels including Zee News, Zee Business, Zee 24 Taas, Zee Punjabi and 24 Ghanta.

IndianTelevision
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#2
really zee 24 gantalu good channel in andhrapradesh.....
bad move zee group......:mdr::mdr:
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#3
(08-29-2012, 11:54 AM)sureshaa Wrote: really zee 24 gantalu good channel in andhrapradesh.....

with low revenue,how they can run the channel!!! Cry
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#4
(08-29-2012, 12:11 PM)waytobala Wrote:
(08-29-2012, 11:54 AM)sureshaa Wrote: really zee 24 gantalu good channel in andhrapradesh.....

with low revenue,how they can run the channel!!! Cry

this channel good rating news channel in telugu...including sports news ect...
add are there to increase revenue.......

the reason of remove this channel is political war.....
this channel aginist jagamn and telugudesam party.....
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#5
Telugu news channel, Zee 24 Gantalu, will shut down next month. Launched with much fanfare in 2009, the 24x7 Telugu news channel from the Zee stable has struggled to generate revenue in the ultra-competitive media industry. The channel will stop on midnight of September 20 and 180 emloyees are facing an uncertain future. Zee’s joint venture, Media Pro Enterprize Private Limited, which owns satellite rights of the Telugu channel, did not explain why such a move has been planned. “The channel’s annual cost was about `20-25 crore while its earnings were less than half of that,” the official told DC.

Zee News Limited will, however, continue to run Zee Telugu and plans are afoot to launch a new English news channel. The Telugu television news space is crowded with 18 players and the industry is facing a crisis due to falling revenues. Sources in the TV news industry said three more 24x7 Telugu news channels are virtually on the deathbed.

But this hasn’t discouraged newcomers. Two more Telugu news channels – CVR channel from the Image Group and Tulsi channel from Tulsi Group – will be beaming soon. In fact, even the Congress is planning its own channel to counter Jagan’s Saakshi.

-Deccon
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#6
Scroll is running on the channel


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#7
AP minister's family may take over Zee Telugu news channel
The company is yet to make any announcement in this regard

Zee News Limited may not shut down its Telugu news channel 'Zee 24 Gantalu' as announced by the company last month. Sources close to the development said Zee had accepted an offer to run the channel by a political family from Andhra Pradesh.

According to the information, Pradesh Congress Committee president Botcha Satyanarayana's family would acquire close to 70 per cent equity in the channel while Zee would hold the rest. The company is yet to make any announcement in this regard.

“Yes, my brother is joining the news channel management,” said Botcha Satyanarayana when asked about the said deal. However, the minister added it was his brother's decision and he was not involved in the matter.

Zee News Limited officials were not immediately available for comment. The minister's brother Satish and the management of Zee 24 Gantalu have an existing relationship wherein the news channel is being distributed on the Citivision cable network across the state. Citivision is owned by Satish.

On August 18, Zee News Limited had issued a public notice stating its Telugu news channel would stop telecast from September 20. Though the company did not attribute any reason, company sources, however, maintained that operational losses arising out of stiff competition in the overcrowded Telugu news channel market had forced the management to take this call.

The company is said to have invested around Rs 100 crore in the news channel.

business-standard

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