The Rs 350-400 crore lifestyle and entertainment television genre has turned into a battleground for US-based media conglomerates. After Discovery, News, CBS and Viacom, now A&E Television Network (AETN)?backed by major US-based firms, including Walt Disney, Hearst Corporation and NBC?is set to launch its international channels History, Bio, Crime & Investigation Network and others in India.
AETN will follow the footsteps of its rivals, including Discovery Communications, NewsCorp?s Fox Broadcasting, CBS Corporation (to be launched with Reliance Broadcast), Viacom etc. who have already found a foothold in the Indian television space. Currently, the lifestyle genre is dominated by Discovery, Fox Network and NDTV Lifestyle channels.
However, in order to expand its presence in India, AETN has formed a joint venture ? AETN 18 Media ? with Raghav Bahl?s new television firm RVT Media. AETN will pick up 49% stake in AETN 18 for $5 million (Rs 22.5 crore), valuing the JV at Rs 50 crore. ?
However, not just for cable and DTH platforms, but AETN has decided to cash in on the fast-growing boom across media platforms, including the Internet, and mobile telephony. AETN 18 has already applied for the downlink permission for the ?History? and ?Bio? channels from the ministry of information and broadcasting. The US media major plans to release its television content on the Internet and mobiles as well, with the launch of 3G services.
However, experts say AETN will probably launch around the same time as CBS, which also plans to launch three channels initially through its JV with Reliance Broadcast Network. ??Since there are restrictions in the news genre for US media firms, the lifestyle and entertainment genre is the next big choice for growing their business outside the US, Europe and Australia. This may also be a precursor to a re-look at easing FDI caps in the news space as well,? a media expert said.
Incidentally, this move will mark a re-entry of the ?History channel? and AETN in India after nearly three years. Earlier, AETN used to distribute the History channel through its pact with Fox International. However, after the two parted ways, Fox launched its own Fox History & Entertainment channel.
Even the lone Indian broadcaster in the lifestyle space?NDTV Lifestyle?recently sold 49% stake to Malaysian investor Astro in order to fight the growing competition in the genre. Apart from US media firms, Malaysian media investor Astro has been focusing on investing in the lifestyle genre. It recently bought a controlling stake in celebrity chef Sanjeev Kapoor?s television firm.