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This is an archive article published on December 31, 2010

Spreading its wings

From a single channel set-up,Colors,which has already started distributing channels with Sun,is all set to move towards becoming an entertainment conglomerate setting up a movie channel,exploring the regional market and producing films.

From a single channel set-up,Colors,which has already started distributing channels with Sun,is all set to move towards becoming an entertainment conglomerate setting up a movie channel,exploring the regional market and producing films.

The year gone by was action-packed for Colors. From tying up with Sun to form a distribution network Sun 18,buying a film company,and plans of setting up a movie channel,things have been moving at a hectic pace. On the channel front,it may have lost its numero uno position to Star but it rated high on the controversy quotient with Bigg Boss 4 that caught the eye of Information and Broadcasting Ministry,which felt that the shows content was adult and wanted its timing changed to 11 pm. But Colors went to court and appealed against it. In what could be termed as a reprive for the channel,it has been given permission to continue airing the show at 9 pm,provided they give an undertaking that they will not screen any dialogue that is required to be beeped or any obscene gestures by the participants.

However,Rajesh Kamat,CEO,Colors points out that they are in favour of self-regulation of content and do it on all their shows. All broadcasters with Indian Broadcasting Foundation IBF have put together a self-regulatory code and the process to be followed. We are hoping that the I amp; B Ministry will buy in on the same, says Kamat. Meanwhile,the show has done its bit for the channel both in terms of ratings and creating hype. As Kamat says,Sustaining the ratings of a show like Bigg Boss for 100 episodes is a Herculean task. And with a rating of three-and-a-half to four every week,the show has been the best among the three seasons that we have aired, he beams.

Kamat has other reasons to smile. From a single channel set-up,Colors is moving on to becoming a entertainment network that will include foraying into the regional TV space and an exclusive Hindi movie channel,a la Star and Zee. We realised that you cannot depend only on one channel for success because it will go through its ups and downs. In order to make the business model stable,first we put up a blueprint of a film channel and are exploring the avenues for regional channels as well, informs Kamat. Incidentally,the year saw Colors going all out to buy film rights for its upcoming movie channel. We have bought a lions share of the film library,about 70 per cent of the films,including those that are yet to go on the floors, says Kamat,whose film channel,in all probability,under the Colors umbrella,will launch in the first half of the new fiscal year. Apart from this,plans are afoot to get into film production. They have already bought the Indian Film Company,which has in the past produced films like Jab We Met and Singh Is Kinng. Since Kamat is already in touch with film stars for reality shows and stars too are into production or co-production,it works out favourably for the newfound company.

In another strategic move,Colors has moved away from One Alliance that was distributing the channel and entered into a tie-up with Sun Network to form Sun 18,a distributing network. The distribution business is worth 18-19 thousand crore of which broadcasters get 3000- 4000 crore. So,rather than solely depend on advertising to generate revenues,it made sense to take up distribution. Six months ago,we formed Sun 18 and revenues accrued go straight to the bottomline, informs Kamat,who is also the CEO of Sun 18,North India. Sun 18 has a 33 channel bouquet that comprises Viacom 18,Network 18,Disney and Sun channels. The channel also expanded its footprint to US,UK and Middle-East and will soon be beamed in Singapore.

As for the fluctuations in the positioning of the channel,Kamat argues that it is part of the game and as long as they are in the top bracket comprising three players,garnering eyeballs and making profits,it doesnt matter. We are stable. Fiction shows are doing reasonably well,non-fiction gets us the image and movies are what we are layered on. Of course,the efforts are on to reduce the gap and race to the top, says Kamat,who is looking forward to the new shows achieving the goal. From issue-based shows,the channel is moving towards serials based on prominent personalities,starting with Phulwa that is loosely based on the life of bandit queen Phoolan Devi and Mukti Bandhan,inspired from Dhirubhai Ambanis life. The latter is also market-specific targetting Gujarat and Mumbai. Today,apart from a job,people want to do their own business. Many feel they have it in them to be a businessman but dont have the capital. Through this serial,we believe we will be catering to that target group.

Besides these two serials,other shows in the pipeline include the annual police event that will air in January and a new reality show Guinness Book Of World Records Ab India Todega that will have Indians taking on the international challengers. The show will be hosted by a top female celebrity,yet to be finalised. Also, the channel that started the trend of screening a film within 45 days of its theatrical release with Ajab Prem Ki Ghazab Kahani,has Golmaal 3,Guzaarish and Tees Maar Khan in its kitty.

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Interestingly, most of the films whose rights are pre-sold have room for re-negotiation after its theatrical release depending on its box-office performance. There were reports of a steep reduction in the prices of Kites and Raavan,which failed to take off at the box-office. Kamat,however,points out that re-negotiation is never disproportionate. There is only a 10 8211; 15 per cent mark up or mark down in and around the figure agreed. Also,typically it is a package deal and if one film works brilliantly and the next does not,it averages out, he reckons. Also, to capitalise on the rights,the channel sub-licenses films to DTH players like Tata Sky,Airtel and Videocon D2H.

In short,with a distribution arm,a network of channels and a film production house,Colors is all set to become an entertainment conglomerate. How it will pan out is something only time and competition will tell.

 

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