News Broadcasting
Star Group Q3 revenue up 14% to $123 mn
NEW DELHI: The Rupert Murdoch-controlled News Corp.’s pan-Asian venture, Star Group, operating income grew 28 per cent year-on-year to reach almost $30 million, propelled by ad revenue growth largely emanating from India.
While the Hong Kong-based Star Group turnover grew 14 per cent to reach $123 million for the third quarter ended march 2006, parent News Corp. continued to maintain strong operating momentum with its Q3 FY 06 (March 2006 quarter) result with an increase in operating income to $889 million.
According to the Hong Kong-based media research firm Media Partners Asia (MPA), Star Group’s Indian operations grew on the back of weekend programming initiatives at Star Plus and Star One.
However, MPA states that Star’s revenue growth of 14 per cent in Q3 was below previous quarters (20 per cent – 30 per cent in Q1 and Q2) due to an earlier-than-expected-closure on Star Plus of the second season of the Amitabh Bachchan-hosted Kaun Banega Crorepati (KBC), which is an Indianised version of Who Wants To Be A Millionaire.
KBC had to be taken off the air earlier this year after its star host, Bachchan, fell ill midway into the second season and expressed his inability to continue shooting for the television programme, which was showing signs of capturing the fancy of the nation once again.
For nine-month FY 06, Star Group’s turnover tracked up 22 per cent to approximately $400 million, while operating income climbed 16 per cent $86 million with margins down a notch to 22 per cent (versus 23 per cent in 9M FY 05) due to higher investments in programming, marketing and distribution largely in India.
MPA forecasts indicate that Star could see $141 million in operating income by the end of the present financial year in June 2006 with total revenue at $551 mil. (+24 per cent Y/Y).
Going forward, Star will be heavily focused on its July 2006 launch of DTH services in India via its 20 per cent-owned $500 million joint venture with the Tatas (80 per cent shareholder) along with a ramp up of programming at its 20 per cent-owned Indonesian terrestrial broadcaster ANTV.
Tata Sky aims to add up to one million pay-TV subs per annum as it looks to drive digital-led addressability in the Indian market.
As of March 2006, India’s first DTH pay-TV provider Dish TV (owned by Zee Telefilms boss Subhash Chandra) had close to a million subscribers.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
