India turns down Nine bid for longer TV deal
<p>NEW DELHI: Kerry Packer's Nine Broadcasting India is in danger of </p><p>being unplugged as government broadcaster Doordarshan (DD) has turned </p><p>down its requests to allow it to run the three-hour prime time slot on </p><p>DD Metro for an uninterrupted 10 years. </p><p><BR><BR> </p><p>Under current arrangements, Nine is required to bid for the slot each </p><p>year. </p><p><BR><BR> </p><p>Anil Baijal, chief executive of Prasar Bharati, the regulatory body </p><p>controlling DD, said it will be calling for fresh bids after Nine </p><p>rejected its offer of an 18-month extension.Nine is believed to have </p><p>sweetened its bid by offering a fee plus a share of revenue. </p><p><BR><BR> </p><p>Nine's chief executive, Ravina Raj Kohli, said: "We see ourselves as the </p><p>best partners for DD to make Metro an entertainment powerhouse, and to </p><p>fully realise the channel's potential." </p><p><BR><BR> </p><p>According to industry sources, Nine's record USdollars 26 million bid </p><p>for DD Metro was an acknowledgement of the advantages of state </p><p>patronage. DD enjoys a monopoly over terrestrial airwaves, and a </p><p>legislative edict ensures that cable operators carry at least three DD </p><p>channels, which translates to an audience of 33 million people. </p><p><BR><BR> </p><p>Branded as "Nine Gold", Nine's time band on DD Metro features </p><p>locally-produced Hindi language dramas, 26 of which made it into the </p><p>list of the country's top 50 entertainment shows. </p><p><BR><BR> </p><p>The company won three Radio & TV Practitioners' Association of India </p><p>awards this year, and under Nine's management of its slots, DD Metro has </p><p>made five times the revenue it earned from the slots last year. Kohli </p><p>said heavy investments in programming are needed to compete with Hindi </p><p>entertainment satellite channels like STAR Plus and Sony Entertainment </p><p>Television. With Nine only expecting to break even in six years, she </p><p>said a longer contract was crucial. </p><p><BR><BR> </p><p>But India's broadcast regulatory body is adamant that no single private </p><p>programmer should hold a monopoly over a Doordarshan channel. </p><p><BR><BR> </p><p>It has been speculated that the Doordarshan arrangement is more </p><p>experimental than strategic, less about entertainment and more about </p><p>needed cash transfusions, as the public broadcaster has a mandate to </p><p>develop the industry. </p><p><BR><BR> </p><p>Back-room work on Packer's USdollars 640 million enterprises in India </p><p>was conducted with controversial stockbroker Ketan Parekh, who is now in </p><p>jail for alleged stock market manipulation. Insiders say the past </p><p>association with Parekh is of additional concern to the Government. </p><p><BR><BR> </p><p>However, James Packer, chief executive of Consolidated Press Holdings, </p><p>continues to emphasise the company's ambitions for Nine. "We want to </p><p>build Nine Broadcasting into the biggest entertainment conglomerate in </p><p>India. </p><p><BR><BR> </p><p>Let the opportunities come, and the capital will be available." </p><p><BR><BR> </p><p>With Nine having built a brand presence in the market, industry analysts </p><p>speculate that it could set up its own satellite channel, in the same </p><p>way that Discovery Channel India has done. </p><p><BR><BR> </p>
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