Search the Internet          Tips  Sites: Finance, Investment

Crest to launch six serials by year end

Anusha Subramanian

Bombay-based Crest Communications is planning a foray into television software business. The company had so far been focusing on graphics and 2-D and 3-D animation business.

Crest is planning to produce serials and gameshows besides other contents. It has set itself a target of having six to eight programmes on air before the yearend.

"We want to get into the commissioned programmes category. We would like to explore the children and family-based programmes segment in a big way," AK Madhavan, senior vice-president, International business said.

In the case of commissioned programming the broadcaster commissions the content provider to produce content on a cost-plus margin basis (margin is typically 15-25 per cent of the costs).

Currently, Crest is working on the pilot project of a gameshow for children, which will have a high level of interactivity as well as technological innovation. An idea being explored is to use phone lines not only for calling in but also to allow a participant to play using the keys on his phone instrument as a game console. For this, Crest is in contact with national telephone services provider MTNL.

The television software industry is expected to register strong growth owing to increase in demand for content, increase in programming rates and increasing revenues from television advertising accruing to the content producers.

According to a Arther Andersen-Ficci report and industry sources, television software industry is expected to grow from the current level of Rs 13.8 billion to about Rs 50.94 billion by 2004-05.

According to media analysts apart from the growth that the television software industry is expected to see, also what could be driving Crest Communications to get into the content space is the increase in number of programming hours and the programming rates at 20 per cent for premier channels.

Madhavan said of the six projects they were planning, two will be high quality products with the kind of production values seen in the critically acclaimed TV series Malgudi Days.

The other four would be your average bread and butter variety of soaps and sitcoms, the kind which are proliferating across the small screen at present.

It is understood that the costs involved for the top rung series would cost in the region of Rs 600,000 per half hour episode while the other four would cost between Rs 200,000 and Rs 300,000 per half hour episode.

Crest Communication is expecting to close the year ended March 31, 2001 with a turnover of Rs 250 million and a net profit of about Rs 50 million.

Powered by

ALSO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report