GECs
Zee seeks govt. nod for headend in the sky plan
NEW DELHI: Partners-turned-rivals Subhash Chandra and Rupert Murdoch seem to do things in tandem. The Chandra-promoted Zee Telefilms has sought permission of the Indian government to “turnaround” satellite channels in a digital format from its uplink base on the outskirts of Delhi for, what Zee calls, a headend in the sky project.
This was done almost at the same time (last week) that the Murdoch-controlled Virgin Island-registered Star News Broadcasting Ltd. moved the Indian government for permission to transmit news content for its proposed news channel in collaboration with an Indian content partner, Star India Pvt Ltd.
Government officials told indiantelevision.com that the information and broadcasting ministry has received a detailed proposal from Zee for putting a headend in the sky that will substantially lower investments on cable headends by cable operators and multi-system operators as and when conditional access system (CAS) is implemented.
The concept mooted by Zee, government officials pointed out, is being studied as it can go a long way in solving various problems of the broadcasting and cable industry and can go some way in dealing with the frequent face-offs between broadcasters and cable operators that put cable viewing subscribers at inconvenience.
What is a headend in the sky? In short, pay channels are decrypted and aggregated at a central facility (here it would be Zee’s uplinking base at Noida), then all channels are up-linked with common CAS inserted. After this, the channels are downlinked at headends where the cable operator, with the help of a trans-modulator, makes the satellite signals compatible for a cable system and mixes signals of free-to-air channels for further re-distribution to cable subscribers. The combined channels go to subscriber’s set top box and get decrypted for viewing on the TV set.
According to Zee executives, the proposal, prepared by its cable subsidiary Siti Cable, is being examined by the government and talks also have been initiated at both formal and informal levels with other broadcasters like Sony Entertainment Television India and Star India for inclusion of their respective channels in the common encrypted signal.
The Zee executives also pointed out that this way investment in a post-CAS era would come down substantially as the headend in the sky project is likely to cost between Rs 150 and Rs 180 million. Technical advantages of this apart, otherwise in a post-CAS scenario an average cable operator would have to shell out between Rs. 60,000 and Rs 100,000 per channel to upgrade his/her system.
At the moment, an average Indian cable home with a comparatively modern TV set is capable of receiving on an average about 50 channels.
If the project gets the government nod, then at a later stage the subscriber, through the set top box, can have a new service or go in for a change in his service mix by calling up a toll free number connecting to the subscriber management system (SMS) and log in his request. The subscriber management centre sends a message to the “turnaround” centre and executes the request through a data controller. The billing is generated by SMS and sent to the subscriber through designated means.
If the project gets the government nod, then at a later stage the subscriber, through the set top box, can have a new service or go in for a change in his service mix by calling up a toll free number connecting to the subscriber management system (SMS) and log in his request. The subscriber management centre sends a message to the “turnaround” centre and executes the request through a data controller. The billing is generated by SMS and sent to the subscriber through designated means.
The Zee proposal with the government also moots that all stakeholders in the industry should be part of the headend in the sky project and a separate legal entity can be formed with equity stake offered to all stakeholders, namely broadcasters, cable operators, and MSOs.
To ensure equal representation from all stakeholders, the shareholding pattern of the proposed company, implementing the headend in the sky project, may be broadly divided equally amongst broadcasters (33.67 per cent), MSO (33.67 per cent) and cable operator (33.67 per cent), the Zee proposal states.
The big question is: will all the broadcasters agree to common encryption?
GECs
Sahara One reports financial results, notes director exit and business realignment
Muted revenues, steady expenses and strategic adjustments shape company’s current phase
MUMBAI: In a tale where the sands seem to be slipping faster than they can be gathered, Sahara One Media and Entertainment Limited has reported another quarter of wafer-thin income and widening losses, even as a boardroom exit adds to the unease.
The company informed the Bombay Stock Exchange that its board, in a meeting held on April 4, approved its unaudited financial results for the quarter ended September 30, 2025. The numbers paint a stark picture. Total income for the quarter stood at just Rs 0.13 lakh, unchanged sequentially and sharply down from Rs 0.26 lakh a year earlier.
Losses, meanwhile, deepened. The company posted a net loss of Rs 24.16 lakh for the quarter, compared to Rs 18.81 lakh in the June quarter and Rs 39.69 lakh in the same period last year. For the six months ended September 2025, the cumulative loss stood at Rs 39.69 lakh, while the full-year loss for FY25 was reported at Rs 60.72 lakh.
Expenses continued to outweigh income by a wide margin. Total expenses for the quarter came in at Rs 24.30 lakh, led by employee benefit costs of Rs 6.51 lakh and other expenses of Rs 17.78 lakh. Earnings per share remained in the red at Rs (0.11) for the quarter.
The balance sheet reflects a company with significant assets on paper but limited operational momentum. Total assets stood at Rs 23,065.57 lakh as of September 30, 2025, broadly unchanged from March 2025. Equity share capital remained steady at Rs 2,152.50 lakh, while total equity was reported at Rs 18,004.85 lakh.
Cash and cash equivalents saw a modest uptick to Rs 6.75 lakh from Rs 4.68 lakh earlier, supported by a positive operating cash flow of Rs 180.01 lakh for the period.
Yet, beneath these numbers lies a more complex narrative. The company’s auditors flagged their inability to obtain sufficient evidence to form a conclusion on the financial statements, citing lack of access to records. They also raised concerns over the company’s ability to continue as a going concern, pointing to insufficient funds, delayed recoveries, and stalled content investments.
Adding to the governance overhang, the company disclosed that Rana Zia has resigned as whole-time director, effective October 16, 2025, citing other professional commitments. The resignation, noted and accepted by the board, also brings an end to her role across company committees.
Regulatory pressures continue to loom large. The Securities and Exchange Board of India has already initiated penal actions for non-compliance with listing norms, with trading in the company’s shares remaining suspended. There is also a risk of promoter demat accounts being frozen.
Legacy legal issues remain unresolved. A substantial deposit of Rs 694,027.88 thousand linked to the long-running OFCD dispute involving Sahara group entities is still under the purview of the Supreme Court of India. Restrictions on asset disposal continue to weigh on the company’s financial flexibility.
Operationally, challenges persist across multiple fronts. Advances worth Rs 1,92,916 thousand given for film content remain stuck, with delays in project completion and uncertain recoverability. The company’s YouTube channel, despite being operational, has generated no revenue for over three years due to compliance lapses. In a further twist, management has indicated that revenues may have been fraudulently diverted through unauthorised changes to its AdSense account, with a police complaint in the works.
There are also missed revenue opportunities. Television content rights continue to be used by a related party despite the expiry of the licence agreement, with fresh negotiations still underway.
For now, Sahara One Media and Entertainment Limited appears caught between legacy disputes and present-day operational hurdles. As losses linger and governance questions mount, the road to recovery looks less like a sprint and more like a slow trudge through shifting sands.
