Sun TV to focus on Kerala- Andhra markets - focus on Reality shows and satellite rights

 

Sun Network will be investing more in the Surya TV – Gemini TV markets hereafter. It will be putting out 40-50 episode non -fiction (reality shows) got from International markets. For the time being, the network will concentrate on reality shows and finishing committed movie apart from buying movies satellite rights ,   web-series for the OTT platform is not on the cards. The present method to show medium budget films first on Sun NXT and later premiering on Sun TV  will continue.

Sun will be pumping in Rs 30 cr per show of nonfiction genre. On the movie front, the network has allocated Rs 1200 crores to be spend in 2 years. 8 movies are in the pipeline, four of them are under production. one movie is almost nearing completion. Shooting for a couple of movies are 30% to 40% complete. The fourth movie has just commenced shooting. Two of the eight movies are big ticket releases with South Indian megastars in the lead role. In view of uncertainity surrounding shooting due to Covid 19 restrictions, the network will be clearing the pending commitments. This helps as these films add to the networks film library.

v  For the stock market share investor sharp reduction in dividend payout to 13% versus average of 49% over the last five years, despite cash and cash equivalents of Rs 4140 crore, is a big disappointment. The 2020 Ad revenue fell by 26% but DTH connection subscription has risen by 10%.The promoters' massive compensations have remained intact whilst investors have been short changed. In the case of Sun TV,  promoters and friends and family control almost 80% of the stock. As of date, it has enormous financial assets, excluding non-current assets and trade receivables, of INR 3750 cr. This includes cash, bank and treasury investments. Its gross expenditure net of depreciation and amortization is approximately INR 1150 cr. In other words, the company can survive for 3 years plus with no revenue whatsoever! Surely the management does not believe the pandemic’s impact will be so grave on a company with such a robust business model! -writes Prabal Basu Roy who is a non-executive director, and an Advisor to Chairmen, of corporate boards about the stock market of the network.