Will not launch any fresh programme in Q4 FY10: Balaji Tele

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

Q: Can you update us on what's happening in the sponsored programme segment then and whether there are any fresh programmes lined up over there in this calendar year even?

A: Given where we are and given the Indian Premier League (IPL), I doubt in the next quarter we launch fresh programmes, we are in discussion for a couple but my sense is we will probably do any fresh launches post April.

Q: It's been a tough four quarters for your company and for the sector. Next year do you see any growth for Balaji either on the back of more volume of commissioned programme that you undertake or execute or any increases in rate per hour given the factor that you mentioned IPL etc?

A: We definitely would like to see increase in the rate because in spite of our best effort and we cut cost by almost 70-80% this year. That efficiency has come into the system but if you look around it's going to be very hard to sustain that as a profitable business unless there is any increase in the rate size. So of course we expect rate increase this year. Creatively, our shows have started doing well again. We were number one for almost three weeks out of the last four weeks. I think on the revenue side we expect that to go up.

In terms of number of hours going up; seven shows for Balaji is somewhere in the middle of what we can hold, so between seven and ten is a number that we try to hit so given that and couple of fresh shows that probably come in, the number of hours won't go up that much. We hope for efficiency on the realisation side.

Q: What is the way forward for Balaji? That's the more important question. Are you having a rethink as a management on this model of being a third party content provider or do you at any stage in the future foresee a progression from that kind of a basic business model after going through the phase that you have just gone through?

A: What we define our strategy right now is in terms of three play that's content creation. There is aggregation and there is distribution. We have identified the creation space for us and we decided that we will play in the 3 hour space, in the 30 minute space, the 3 minute space and the 30 seconds space. So its about making film content.

It's about making television content. It is about creating internet content and about creating mobile content. Within the creation space, we launched two brands. Currently, we had existing brand called Balaji, which is target towards certain audience. We have launched a fresh brand called ALT Entertainment, which will target younger, urban audience and we launched talent portal, which is Hoonur, which will target the industry.

So these are the three brands under which we will operate going forward and that's the play for us. Now, whether we go within television to the next level that question is about broadcasting - not today. We are quite focusing on where we are and we have got enough growth strategy in place just to target the content space.

Q: An update on the service tax office show cause notice that you had in the claim of about Rs 63 crore. I know you have appealed it but where do things stand?

A: It's still under appeal. From our perspective we have taken counsel opinion and we are quite comfortable with the feedback we have got. So from our side there is no problem.