Zee and Turner strike up India alliance

The new entity, Zee Turner Private, will look after the distribution and trade marketing of all 17 channels belonging to the two companies.

The partners are planning cross-promotions, programming and distribution arrangements. The venture will also enable the channels to challenge the likes of Rupert Murdoch's Star network and Sony Corporation in terms of offering cable operators a more cost-effective programming package.

Just as Star India and Sony have indicated plans to raise their monthly charges, Zee Turner is tipped to cut its prices. "We may pass on some of the savings that accrue from joint operations to the consumer,

said Sunil Khanna, Zee Turner chief executive.

Zee currently charges US 64 cents for its 14 channels, while the three channels from Turner cost 27 cents. Star charges 85 cents for its seven channels and Sony 46 cents for its four channels. The alliance will also enable Zee and Turner to strengthen their geographic reach, which in Zee's case will mean consolidating its position in south India. Steve Marcopoto, president and managing director of Turner Broadcasting Systems Asia-Pacific, said: "This alliance is a ground-breaking step for us in India. Partnering with Zee means that together we can offer an unparalleled blend of international and local channels."