Date:23/05/2007 URL: http://www.thehindubusinessline.com/2007/05/23/stories/2007052304320500.htm

Back TV18, Viacom ink deal for entertainment company

Our Bureau

Joint venture launching Hindi language channel within a year

JOINING HANDS: Mr Raghav Bahl, Managing Director, TV18 Group, (left) with Mr Philippe P. Dauman, President & CEO, Viacom Inc, at a press conference in Mumbai on Tuesday. — Paul Noronha

Mumbai May 22 Television 18 Group and Viacom Inc, a New York-based global entertainment content company, have joined hands in a 50:50 partnership to form a multi-platform entertainment company called Viacom 18. As per the agreement, which was announced here on Tuesday, MTV, Nickelodeon and VH1, operated by MTV Networks India Private Ltd in India, will now come under the newly formed company. MTV Networks is a 100 per cent subsidiary of Viacom in India.

In addition, all the forthcoming Hindi film productions, acquisitions and distribution ventures of Studio 18 (TV18 Group) will also form a part of the joint venture.

Hindi channel

As per the alliance, Viacom 18 will launch a new Hindi-language general entertainment cable and satellite channel in India within the next one year.

Though the companies denied sharing investment figures, running cost for a general entertainment channel in India comes between Rs 200 and 300 crore, Mr Haresh Chawla, Chief Executive Officer of TV18 Group, told newspersons on the sidelines of the press conference.

The President and CEO of Viacom Inc, Mr Philippe P. Dauman, said, in addition to the company's portfolio of brands in India, it would launch "additional channels from MTV Networks family targeting niche audiences as well as new brands" in the near future under Viacom 18.

The new company will also adopt digital media including Internet and mobile content as part of the joint venture, he added.

Explore opportunities

"Outside the agreement, Viacom will also have a joint ownership of the management company for The Indian Film Company. In the coming months, Viacom's Paramount Pictures and DreamWorks studios will explore additional opportunities for collaboration with Viacom 18," Mr Dauman added.

The Indian Film Company, sponsored by Mr Raghav Bahl, founder and promoter of TV18 group, is proposed to be listed on the Alternative Investment Market (AIM) of the London Stock Exchange.

On whether the growing number of channels in country would survive, Mr Bahl said, "This is the second wave in India's broadcast industry. The audience are much more mature, our revenue streams are far more crystallised, industry structures have consolidated and got organised and distribution platforms are getting organised, so it is time that we step-up our investments too."