CBS joins Reliance to launch in India

Audiences from Mumbai to New Delhi could soon be watching a Bollywood version of the Hollywood gossip show Entertainment Tonight as part of a foray by the programme’s producer, US network CBS, into the country.

CBS on Wednesday announced its first foray into global emerging markets as a network operator, with a tie-up with Reliance Broadcast Network, controlled by Indian industrialist Anil Ambani. It joins the growing number of American media groups targeting India, Asia’s most liberal market for foreign broadcasters.

As part of the deal, the partners plan to launch three English-language channels in India by October and to launch original programming every quarter, including possible variations of some popular CBS programmes.

“I can see the opportunity for local production utilising some of the existing CBS brands,” Armando Nunez, president of CBS Studios International told the Financial Times. “Like creating a local version of Entertainment Tonight with news about Bollywood.”

India is the world’s second-largest pay-television market by viewers after China, with 105m households signed up to terrestrial analogue cable, satellite and digital networks.

The market is also the most liberal for foreign broadcasters, leading to an influx of western media groups, with Rupert Murdoch’s Star, as well as Sony, Viacom, Turner and Disney building a strong presence.

However, the market is highly competitive, with cable operators charging subscribers as little as $4 per month per household.

Media Partners Asia, a Hong Kong-based research house, estimates the market generated domestic revenue last year of $2.3bn. Advertising revenue comprised 70 per cent of this.

Net profit was $410m, of which the leading operators, Star and domestic channels Zee and Sun, accounted for more than $350m.

CBS and Reliance declined to reveal financial details of their joint venture other than that it would be a 50:50 equity partnership.

They will start with three English language channels – a general entertainment channel, Big CBS Prime; a women’s channel, Big CBS Love; and a children’s channel, Big CBS Spark. Local language channels were not currently planned.

Tarun Katial, chief executive of Reliance Broadcast, said the English language audience was among the fastest growing, youngest and most prosperous demographic group in the country and was under-served by existing networks.

Vivek Couto, MPA executive director, said revenue in India from English language programming was about $350m covering all categories except sport.