Subhash Chandra, Chairman, Zee Entertainment, said Zee Entertainment Studios would have an investment of close to Rs 1,000 crore during the next three years, which is being raised through an international market listing this quarter.

Excerpts from CNBC-TV18's exclusive interview with Subhash Chandra:

Q: Where did the surprise come in this quarter around given that we had IPL this quarter? Most analysts were expecting growth on the ad revenues front to be a little more subdued?

A: Zee TV has maintained its rating this quarter in comparison to Star Plus and Sony TV. That’s the reason why we have been able to get our advertising revenues. Advertisers have given full support to our network.

Q: But there is a tough task lying ahead, given the fact that there is so much competition coming into the GEC space. What kind of forecast are you working with on QoQ ad revenue growth for this financial year? Will there be strain at all because of competition?

A: We gave guidance of 30% annualised growth on advertising revenues. We maintain that guidance even now. We also welcome competition.

Q: Would you be looking at rate hikes at this point? You were contemplating some in Q1. Are you going to be essentially working towards bringing more efficiency in your ad rate spot?

A: We took a price hike in Q1. Price adjustments either on the higher or lower side are always a dynamic function of ratings. That keeps getting adjusted. But a general price hike was taken in the first quarter.

Q: What about subscription revenues? On a YoY basis, revenues looked strong given what you did in Q4. However, QoQ subscription revenues seem a bit subdued. What's the forecast there and how much are you targeting?

A: We will see 30% subscription growth in FY09. That’s our guidance and that remains unchanged.

Q: But where will subscription growth come in from essentially, because QoQ the growth has been rather subdued? In the next few quarters, where do you see numbers in terms of subscriber base coming in?

A: There have been some changes this quarter. In our bouquet, some channels went out and some new channels came in. That takes time to settle down. My expectations were more than 28% growth. We will see higher subscription growth in the future.

Q: Would you be looking at listing the film production entity? How much money are you looking at investing? What is the kind of films that you are looking to produce?

A: We are looking at producing all kinds of films, and not just Hindi films. We are going to produce low as well as high budget films. It will be a combination of both. We have already released two Marathi films this year. We are working on Telugu, Kannada, and Bangla films. Put together, Zee Entertainment Studios will have an investment of close to Rs 1,000 crore during the next three years, which is being raised through an international market listing.

Q: When is that likely to happen?

A: It should happen this quarter.