Zee-Sony merger to be India's largest entertainment network by viewership

Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India Private Limited (SPNI), in December 22, said they had signed definitive agreements to merge in a union that will create India's largest entertainment network by viewership.

The two broadcasters will combine their linear networks, digital assets, production operations and programme libraries after which they will seek a listing on the stock exchanges for the united entity, they said in an announcement.

The coming together of the two big media companies will create the largest entertainment network in India, commanding a 26.7 percent viewership share, according to television audience measurement service Broadcast Audience Research Council (BARC) data.

Zee has a presence in 173 countries and a reach of more than 1.3 billion people around the globe. In India alone, it reaches at least 600 million individuals every week. Sony's channel bouquet is viewed by at least 700 million viewers in India and it is available in 167 countries.

In the advertising segment, Zee-Sony together will command 22 percent of the ad revenue market.

The merged entity will clock slightly better growth in advertising revenue than the industry average, said Karan Taurani, senior vice-president and research analyst at Elara Capital.

In terms of content offering, while Sony is strong in general entertainment (GEC) and sports, Zee has the edge in regional content.

With the merger, Zee will gain access to Sony's 10 sports channels, including the recently launched regional channel Ten 4. Other sports channels include Sony Six, Sony Ten 1, Sony Ten 2 and Sony Ten 3 along with the high-definition versions of all.

With the Zee-Sony merger, viewers of the Sony network in India will gain access to over 260,000 hours of Zee television content and also its film library with rights to more than 4,800 movie titles across languages.