Zee Network, the Subhash Chandra-promoted enterprise having presence across major areas of the entertainment business, has decided to enter the film distribution business.
The company would be distributing its in-house productions as well as third-party productions domestically as well as internationally.
To start with, the film distribution business would operate as a division of the parent company. Zee Network has already put in place a dedicated team for the new business.
Subhash Chandra, chairman and managing director of Zee Telefilms said, "We have decided to foray into film distribution because this area of business has a huge potential."
"We noticed that if a movie is successful most of the money is pocketed by the distributors, while the producer hardly makes any money. Besides our own productions, we also plan to distribute third-party productions locally and internationally," he added.
Chandra noted that film distribution, though a profitable line of business, is also a risky one. Only one out of every 10 movies distributed, proves to be a super-hit, enabling a distributor to cover all his losses.
Zee Network has also entered into an alliance with France TV and Silhouette films to co-produce a cross-over film One Dollar Curry to be directed by Vijay Singh. The estimated budget of the film is Rs 10 crore, of which one-third would be financed by Zee.
"The co-production venture with France, a first of its kind in India, is Zee Network's first step towards producing cross-over films," Chandra said.