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The Indian division of Sony, a Japanese corporation, has merged with local rival Zee. The agreement was signed by both companies. This will make it the second largest entertainment company in the country.
With this connection, nearly 75 TV channels, cinema-related assets and two streaming sites will no longer be under one umbrella.
It is expected to become a major player in the fast-growing entertainment industry in the country, challenging competitors including Walt Disney’s Hotstar.
India has over 900 million TV viewers and over 800 channels.
These channels offer a variety of programs ranging from sports and TV series to reality shows.
The announcement of the merger of these companies was made on Tuesday (December 21). Accordingly, Sony Pictures Network India (SBNI) will have a 51 per cent stake in the joint venture. After the implementation of the 90 Diligence Period, the company will be headed by Puneet Goenka, CEO of Zee.
Goenka described the deal as an “important milestone”.
“The joint venture will create an expanded entertainment industry, which will enable us to serve our customers with a wide range of entertainment options across various platforms,” he said in an official statement.
Both these companies have been operating in India for many years. They also own the G5 and Sony Live streaming sites.
Those companies have extensive television business with popular channels such as Sony Max and Zee TV.
“This is a great deal,” media and entertainment expert Vanitha Koli Contegar told the BBC.
“For example, Sony does not have small businesses and regional businesses all over India as it does with Gee. Also, Gee does not have the child sports, sports business that Sony has.”
Contegar also said that the deal would elevate Gee to the international stage.
“The company is now affiliated with Sony, a $ 82 million (61 61 million) company. So now Zee has become a foreign company. It will provide a great platform for the company.”
“Most Indians are still dependent on direct-to-home TV entertainment. However, our country is a lucrative destination for streaming sites that are trying to create a wider internet market by targeting younger audiences digitally.
Over the past few years the competition between streaming sites including Netflix, Amazon Prime Video and Hotstar has been increasing. This is because many people opt for digital programs instead of television.
The merger between Sony and Zee is expected to further intensify the competition, experts say.
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