The 50-50 joint venture between the two companies, to be known as Viacom-18, will start a Hindi-language entertainment channel in India by 2008.
MUMBAI: Broadcast major TV18 is diversifying into the entertainment space through a 50:50 joint venture with US-based media conglomerate Viacom. The new venture, Viacom-18, will focus on broadcasting, entertainment and films.
The venture, to begin with, will include Viacom’s MTV, Nickelodeon and VH1 and TV18’s film distribution business, Studio18. Content related to news, however, will not be a part of the deal.
While the companies were mum on the investment, sources said in the initial phase about Rs 500 crore plus have been pumped in.
Philippe P Dauman, president and CEO, Viacom, said, “This joint venture will help us leverage the assets of both Viacom and TV18. This venture will deliver content related to television, films and digital medium. Viacom already has a film distribution business and our clients are Paramount and DreamWorks SKG. This business will remain separate and will not be included under Viacom-18. However, both Paramount and DreamWorks SKG are planning some kind of an alliance with Viacom-18. Viacom has similar alliances in other markets including the UK, Australia and Japan.”
Raghav Bahl, MD, TV18, said, “When we entered the Indian market 15 years ago, we wanted to explore both news and entertainment spaces. One of the first shows that we launched during our early days was created by MTV. So this alliance is like home coming of sorts.”
Viacom-18 plans to launch a Hindi general entertainment channel by next year. The company will also start a few other niche channels later.
Viacom Brand Solutions will remain integrated with the JV. MTV and VH1’s existing marketing team will come under Viacom-18. However, an existing contract between NDTV and Nickelodeon will continue.
Currently, Viacom-18 does not have a CEO. The company will shortly decide upon a board, which will in time pick up a new CEO.
Though Dauman declined to comment, it is possible that distribution responsibilities for all the movies released in India by Paramount and Dreamworks will abide with Viacom-18.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}