"We would like to continue our relationship with Zee Network. Though we are out of their Hindi entertainment channel Zee TV, we could be selling our shows to their Alpha channels," said Buena Vista Television India chief executive officer Pratik Basu.

Disney plans to be present in regional language channels across six states in the next three months. "We are in talks with the language channels like Tara and Prabhat. We will be in Marathi, Tamil, Bangla, Punjabi, Malayalam and Karnada'', Basu said. Disney shows are already available in Hindi, Telugu and English. Walt Disney aims to launch its channel in the country within six-eight months, Basu said. Star TV, Sony Entertainment Television and Modi Entertainment Network are in the race for distributing the channel. "Disney is looking at a pay and advertising revenue model. But there is no pressure as the Disney shows are earning money from the other networks," he added.

Disney has not extended its annual contract with Zee TV for two of its popular shows: Good Morning Disney and Disney Hour. The company has signed a three-year contract with Sony Entertainment Television to air these shows starting September 1, 2000. The two companies will share advertising revenue on the programmes, sources said. Disney had a similar arrangement with Zee TV.

"We decided to partner with Sony as we could get a three-year contract. This will give us a long term perspective and allow us to amortise costs for fresh quality programming content and dubbing," said Basu.According to the contract, up to 50 per cent of the total programming provided on Sony TV will be freshly dubbed shows. Good Morning Disney will air on Sony between 8.30 am-9.30 am, while Disney Hour will be telecast daily between 6 pm-7 pm Disney, sources said, invests $1,000 for half-hour dubbing of fresh programming.

Disney will produce local programmes including a family game show for Sony TV. Said Basu, "We will locally produce one show a week for Sony TV. But this will not involve animation." Several brand new animation titles like The Lion King's Timon and Pumba, Mouseworks and 101 Dalmatians which have never been shown on Indian television before, are planned to premiere on Sony TV.

Disney sells 1,500 hours of animation programming a year to different channels in the country, up from 52 hours in 1993. Ratings have seen increases of five to six times on Disney programming. "Disney shows help channels achieve close to 60 per cent channel share in their time slots," said Basu.

Sony, with the Disney deal, will have access to kids programming and be able to strengthen its morning and early evening bands. Zee, media analysts say, will find it difficult to replace the popular Disney shows with good content for kids.