Despite losses Anil eyes BIG in media business- To launch 20 new TV channels [Media Monday]
Reliance Broadcast Network Ltd. (RBNL) recently raised Rs. 2.83 Billion via preferential allotment of 33.32 million equity shares at a price of Rs 85 per share. Even though RBNL which houses the radio and Out-of-Home business of R-ADAG faced a net loss of Rs 294.17 million for the year on a revenue of Rs 1.08 billion, the company is betting big on the future of media industry.
Reliance Entertainment Pvt. Ltd, the media and entertainment arm of the Reliance Anil Dhirubhai Ambani Group (R-Adag) is set to enter the broadcasting space by launching two companies viz. Reliance Big TV Entertainment Pvt. Ltd and Reliance Big TV News Pvt. Ltd. The group is aiming at launching 20 new channels, 4 in news (2 business news and 2 general news). The other group will launch channels ranging from Music to General Entertainment to regional Movie Channels!
RBNL and CBS Studios International, a division of CBS have formed a 50:50 joint venture as a limited liability company – BIG CBS Networks Pvt. Ltd. By early next year we can see Channels such as BIG CBS Prime (English GEC), BIG CBS Spark (English Youth) and BIG CBS love (English GEC for Women).
Moving into TV Channels business will make RBNL a complete 360 degree media company- Radio, Movies, Television, Internet and Outdoor! But even though they have money and are foraying into everything are they doing enough to become a market leader? I have serious doubts when it comes to R-ADAG group. They are trying to do everything without focussing on some key aspects of business. Let’s try to check some of them-
- Television broadcasting in itself is a huge entity, which requires hell lot of commitment and innovation. Simply getting content from big production houses of Hollywood won’t help. Here they are competing with giants such as Star, Zee and TV 18.
- DTH industry is already in red and with pathetic customer support Reliance is not doing any better than it’s competitors.
- Their outdoor business venture BIG STREETS saw a setback recently- the company allegedly failed to fulfil its licence fee payment commitment to the Ahmedabad Municipal Corporation on account of slack business.
I’m not sure how well are it’s other entities doing, but I simply know that no one can become a market leader in any business without commitment. More than just playing with public money, I would like to see Reliance (A-Adag) focussing more on individual businesses, grow them and then move in another business.
Do you agree with my viewpoint?