News Broadcasting
Will CAS impact Zee TV? An SSB analysis
MUMBAI : Salomon Smith Barney (SSB) has not revised its earnings estimate nor the 12 month price target for the Zee Telefilms scrip following the clearance of CAS in the Rajya Sabha.
In a report entitled CAS is a reality but let’s await implementation, SSB says that Zee Telefilms will continue to trade at 16x times its EPS 12 months forward and has cautioned “that implementation issues around CAS and subscriber take-up present uncertain variables that prevent sound fundamental analysis. A wait and watch approach on this would be more appropriate for now.”
The report says that the implementation of CAS will no doubt have a significant impact on SSB’s earnings estimates for Zee Telefilms. The roll out schedule notified by the government (six months as per legislation) and compliance with the same will decide the impact on FY04E (limited in SSB’s view) and FY05E earnings.
The report points out that for SSB FY05 revenue estimates of domestic subscription revenue (Rs 2.4bn 25 per cent growth CAGR) to be maintained, the subscriber declarations from the regional cable operators need to improve substantially while at least 20-30 per cent of the metro subscribers (Mumbai, Delhi, Kolkata) need to be seeded with set-top boxes.
The per channel tariff (that is cost of subscription of stand-alone Zee TV) and the mix of subscriber declarations from metros and non metros will also be other important factors relevant to model subscription revenues from the metros.
Funding of set-top boxes and investments in cable head-ends and subscriber addressability systems for Zees MSO subsidiary Siticable will also need to be factored in. Lastly, the impact of CAS on advertising revenues will also need to be watched. Advertisers could shift spends to FTA channels if their connectivity post CAS implementation is significantly better than that of the pay channels.
SSB therefore says it would await further clarity (implementation specifics, schedule etc) before revising its earnings estimates for Zee.
The SSB report adds that “the inherent leverage in the broadcasting business is substantial. A channel driver program backed by all round sustained programming initiatives could change the dynamics for both advertising and subscription revenues.”
It believes that “the new management led by the promoter has a long experience in this business and could engineer a turnaround more rapidly than we expect.” While its new programming initiatives have been positively received, they have not resulted in a substantial rise in ratings.
On the downside, SSB says, the potential listing of Sony and Star Plus could put Zees valuation premium vs. the broader market (Sensex) at risk. Additionally, the company has been lax on corporate governance issues, the woes of which have also adversely affected the stock in the past.
News Broadcasting
News18 hosts Tamil Nadu town hall ahead of 2026 polls
MK Stalin headlines ‘Next Big Leap’ event from 10am on 23 February in Chennai with leaders and icons.
MUMBAI: Tamil Nadu’s political pot is simmering and News18’s town hall is stirring it up just in time for the 2026 assembly elections boilover. Set for 23 February from 10am onwards in Chennai, the News18 Network Town Hall gathers heavyweights under the banner ‘The Next Big Leap for Tamil Nadu’ to dissect the state’s political pulse, economic edge, and cultural clout. With the 234-seat assembly contest looming as a fiercely competitive showdown, the event spotlights how Tamil Nadu’s identity-driven politics and engaged voters continue to ripple across national debates.
Chief minister MK Stalin leads the charge with a keynote on the theme, sketching his government’s blueprint for governance, development, and staying power pre-polls. Deputy Chief Minister Udhayanidhi Stalin chimes in on ‘Voices, Vision & Way Forward’, unpacking generational shifts and fresh narratives. From the opposition corner, AIADMK general secretary Edappadi K Palaniswami tackles ‘Baton Change at the Ballot?’, floating alternatives to the status quo.
Economic vibes get a nudge from industries minister TRB Rajaa on ‘Investment Story Intact?’, probing the state’s draw for big bucks. BJP’s K Annamalai dives into ‘People, Trust & Political Ideology’, positioning his party in the Dravidian-dominated turf. IT Minister Palanivel ThiagaRajan explores ‘Code, Capacity & Citizenship’, on tech’s role in citizen-focused services. TVK’s KG Arunraj questions if ‘Winds of Change are Possible’ in this pattern-prone state.
A panel on innovation features IIT Madras director Prof V Kamakoti, M&M’s Velusamy R, and Electronic Industries Association’s Dr Sasikumar Gendham, musing how AI and knowledge hubs are remaking opportunities. Culture gets its due with composer Anirudh Ravichander on ‘Tamil Music for the World’.
CNN-News18, editorial affairs director Rahul Shivshankar noted, “The News18 Network Tamil Nadu Town Hall… reflects our core editorial focus, to capture the political mood of the state and spotlight the ideas that will shape the next phase of governance and growth.”
Network18, CEO of English & business news Smriti Mehra added, “As Tamil Nadu moves closer to a defining electoral moment… we see it as our responsibility to drive informed and meaningful conversations.”
Network18 managing editor for South, Vivek Narayan said, “The News18 Network Townhall in Tamil Nadu is designed as a platform where policy, politics and public interest intersect.”
Backed by associate partners Tata Motors Commercial Vehicles and Reliance Industries, the live event streams on CNN-News18, News18 Tamil, CTV, and Youtube from 10am on 23 February perfect for catching the sparks, even if you’re not knee-deep in Dravidian drama.
