Fiction
Balaji Telefilms aims to break even consolidated business by end of FY20
MUMBAI: Balaji Telefilms Ltd (Balaji Telefilms) is hoping to break even its consolidated business by the end of the ongoing financial year. While the recent partnership of its digital arm ALTBalaji with ZEE5 will work as a key contributing factor, good movies and better cost control environment for television segment will also help the content powerhouse to achieve its aim by 31 March 2020. Moreover, the company expects significantly higher revenue from ALTBalaji at the end of this financial year compared to FY 2019.
“Our aim is to break even on both the cash as well as on a P&L level, the consolidated business by March 31 2020 given that at this scale of operations we will be cash sufficient for a long time,” the management said in an earnings call with analysts after publishing its Q1 results.
“The cash receipts from the sale of rights for the movies has to yet come in, it has come in Q2, so Q2, Q3 we will see that, that is the portion. H2 is when the cash situation on ALT we will see a significant increase. So the movies cash inflow starts from this quarter because the Zee deal kicks in. You will see a significant improvement in cash flow on ALT also. A combination of this will mean that we will be in a much better position breaking even like I said at the end of the year,” the management added further.
Like the financial year 2019, ALTBalaji will be investing around Rs150 crore this year out of which Rs 75 crore has already been invested in the first quarter itself. So, while the proposed investment in ALTBalaji will be around Rs 75 crore. the company will contemplate later if there is a need to increase funds. While Rs 100 crore is allocated for investment in content, rest of the Rs 50 crore will be used for other segments like technology, people.
Moreover, there will be no ALTBalaji content available on big telecom platforms from 1 October 2019 due to the new ZEE5 deal. “It is a co-sharing model, share the content on ALT as well as on ZEE. Before the ZEE deal we used to share the content on about 6 to 7 partners. Now all that will be taken away and everything will be behind the paywall for all production that will go in H2,” the management commented on the newly announced deal.
The company is also confident about a certain amount of revenue for ALTBalaji from the ZEE5 deal. It also hopes to continue on the growth trajectory of its revenue which was at Rs 7 crore in the first year and Rs 42 crore in the second year. Moreover, it also expects 1.5 to 2X growth compared to last year.
For now, the deal has been struck for two years where the IP will be co-shared by both the platforms, unlike a TV production deal. Moreover, the library of 38-40 shows that have been produced will continue to be exclusively with the OTT platform.
“What the Zee deal does is that there will be no telcos now where freely content will be available, so there is no free-pricing model, everything goes behind the pay and therefore we are more confident that we will be able to get direct subscriptions. Our library of 38 shows will be exclusive to us. Only the fresh shows in H2 will go to ZEE5. So these factors lead us to believe that we will have direct subscription growth year-on-year,” the management commented.
Fiction
Banijay merges with All3Media in $6.65 billion deal
Marco Bassetti will lead the combined company as CEO
PARIS: Six years after acquiring Endemol Shine at the height of the pandemic, Banijay has struck again. The European production heavyweight is merging with All3Media in a deal that will create a television titan with $6.65 billion in revenue and redraw the contours of a fast-consolidating market.
The combined company will trade under the Banijay name and be owned 50 per cent each by Banijay Group and RedBird IMI, which acquired All3Media in 2024. The transaction is expected to close by autumn, subject to regulatory approvals.
Banijay Entertainment CEO Marco Bassetti, will take the top job at the enlarged group. All3Media CEO Jane Turton becomes deputy CEO. RedBird IMI CEO Jeff Zucker will serve as chairman.
The logic is scale. Broadcasters are commissioning less, streamers are tightening budgets and global buyers are fewer but bigger. Against that backdrop, heft matters. The merged entity will generate roughly $6.65 billion in revenues based on 2024 figures, giving it sharper elbows in rights negotiations and deeper pockets for franchise-building.
“Entrepreneurialism, ambition and creativity” remain core to Banijay’s DNA, Bassetti said, flagging plans to invest more heavily in new intellectual property, live events and emerging platforms. Turton struck a similarly bullish note, pointing to All3Media’s journey from a 2003 start-up to a global supplier of hit formats and high-end drama.
Between them, the two groups control a formidable slate. Banijay’s catalogue spans MasterChef, Big Brother, Survivor, Black Mirror, Peaky Blinders and Deal or No Deal. All3Media’s labels include Studio Lambert, producer of The Traitors and Squid Game: The Challenge; Two Brothers, behind The Tourist; and Neal Street, currently producing the forthcoming Beatles biopics directed by Sam Mendes for Sony.
The back catalogue is equally muscular. Banijay Rights holds some 220,000 hours, while All3Media International adds around 35,000 hours, forming one of the industry’s largest libraries.
Banijay, controlled by French entrepreneur Stéphane Courbit and listed in Amsterdam, counts more than 130 production companies across 25 territories. All3Media operates over 40 labels, with strong positions in the UK, US and Germany. The enlarged group will also lean into live entertainment, building on Banijay’s Balich Wonder Studio, which produced the opening ceremony of the Milan-Cortina Winter Olympics, and the Independents.
The deal marks a shift in tone. As recently as October, Bassetti suggested that mergers and acquisitions were not a priority. But the drumbeat of consolidation has grown louder. Mediawan has moved for Peter Chernin’s North Road. David Ellison’s Paramount has agreed to a $110 billion takeover of Warner Bros, with plans to combine HBO Max and Paramount plus. ITV has explored selling its media and entertainment arm to Comcast-owned Sky, though talks have reportedly slowed.
