A leading European entertainment network (part of Bertelsmann AG) RTL Group has joined hands with Anil Dhirubhai Ambani Group (ADAG) promoted Reliance Broadcast Network Ltd (RBNL) for a joint venture to launch thematic television channels in India.
RBNL (among India’s youngest media conglomerates) through its subsidiaries will form a limited liability company (LLC) with RTL Group and will together act as shareholders with an equal equity interest (50:50) in the joint venture. This development marks RTL’s foray into the Asian TV market and is RBNL's second international partnership after CBS Studios International.
Tarun Katial, CEO, RBNL said the joint venture brings the European leader in to the Indian market and that it will be at the core of creating a revolution in the Indian English entertainment space.
"We are committed to offering audiences unprecedented international television content, and RTL Group’s, extensive library and lineage compliment the partnership perfectly. The synergies, values and visions that both Companies share, will allow this joint venture to offer value to audiences and marketers alike,” said Katial.
The partnership will also give the JV access to RTL Group’s content production arm FremantleMedia’s content.
Refraining from divulging precise financial details, RBNL officials said that the initial scope of investment in the JV will be for two English-speaking thematic TV channels. One will be a reality channel with international content, mainly from RTL Group’s production arm FremantleMedia, and the second one will primarily target male viewers with action-oriented content," said the company spokesperson.
Andreas Rudas, executive vice president - regional operations and business development (Central and Eastern Europe) for RTL Group, said, the company believes strongly in the Indian market. "It's a market with a young population which loves TV and impressive potential for further growth. We are thrilled to be here with Reliance Broadcast for our first broadcasting venture in Asia,” said Rudas.
RTL Group With a market cap $15.5 billion, has a portfolio of 40 television channels and 33 radio stations in 10 countries. With RTL owning Fremantle, it is also one of the world’s leading producers of television content such as talent and game shows, drama, daily soaps and telenovelas, including Idols, Americas Got Talent, The X Factor, Good Times - Bad Times and Family Fortune, The Apprentice.
RBNL brings to the JV significant muscle in sales and marketing along with key understanding of the local market and consumer dynamics. It's strong robust distribution network will also allow for optimising content besides its ability to also leverage the Reliance Group media assets across mobile, online, multiplexes and gaming. As for RTL, it brings in a rich experience in the television broadcasting business, strong depth in content library with high quality formats, production and promotion expertise.
Key financial highlights of RBNL:
Consolidated – accounting period ended March 31, 2011
- Total revenue of Rs. 141 crore
Standalone Key Performance - quarter ended March 31, 2011 vs. quarter ended March 31, 2010
- RBNL recorded revenues of Rs. 71 Cr, up by 30%
- Radio Operations records revenue of Rs. 47 Cr up by 25%
- Radio remains EBITDA positive at Rs. 9 Cr, growth of 176%
- Radio inventory utilisation growth of 20%
- Intellectual Property business revenues grew by a remarkable 240% to Rs. 15 Cr on the back of 8 properties
- OOH business posted a robust 15% growth sales performance driven by innovation and marquee properties
RBNL (among India’s youngest media conglomerates) through its subsidiaries will form a limited liability company (LLC) with RTL Group and will together act as shareholders with an equal equity interest (50:50) in the joint venture. This development marks RTL’s foray into the Asian TV market and is RBNL's second international partnership after CBS Studios International.
Tarun Katial, CEO, RBNL said the joint venture brings the European leader in to the Indian market and that it will be at the core of creating a revolution in the Indian English entertainment space.
"We are committed to offering audiences unprecedented international television content, and RTL Group’s, extensive library and lineage compliment the partnership perfectly. The synergies, values and visions that both Companies share, will allow this joint venture to offer value to audiences and marketers alike,” said Katial.
The partnership will also give the JV access to RTL Group’s content production arm FremantleMedia’s content.
Refraining from divulging precise financial details, RBNL officials said that the initial scope of investment in the JV will be for two English-speaking thematic TV channels. One will be a reality channel with international content, mainly from RTL Group’s production arm FremantleMedia, and the second one will primarily target male viewers with action-oriented content," said the company spokesperson.
Andreas Rudas, executive vice president - regional operations and business development (Central and Eastern Europe) for RTL Group, said, the company believes strongly in the Indian market. "It's a market with a young population which loves TV and impressive potential for further growth. We are thrilled to be here with Reliance Broadcast for our first broadcasting venture in Asia,” said Rudas.
RTL Group With a market cap $15.5 billion, has a portfolio of 40 television channels and 33 radio stations in 10 countries. With RTL owning Fremantle, it is also one of the world’s leading producers of television content such as talent and game shows, drama, daily soaps and telenovelas, including Idols, Americas Got Talent, The X Factor, Good Times - Bad Times and Family Fortune, The Apprentice.
RBNL brings to the JV significant muscle in sales and marketing along with key understanding of the local market and consumer dynamics. It's strong robust distribution network will also allow for optimising content besides its ability to also leverage the Reliance Group media assets across mobile, online, multiplexes and gaming. As for RTL, it brings in a rich experience in the television broadcasting business, strong depth in content library with high quality formats, production and promotion expertise.
Key financial highlights of RBNL:
Consolidated – accounting period ended March 31, 2011
- Total revenue of Rs. 141 crore
Standalone Key Performance - quarter ended March 31, 2011 vs. quarter ended March 31, 2010
- RBNL recorded revenues of Rs. 71 Cr, up by 30%
- Radio Operations records revenue of Rs. 47 Cr up by 25%
- Radio remains EBITDA positive at Rs. 9 Cr, growth of 176%
- Radio inventory utilisation growth of 20%
- Intellectual Property business revenues grew by a remarkable 240% to Rs. 15 Cr on the back of 8 properties
- OOH business posted a robust 15% growth sales performance driven by innovation and marquee properties
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