Zee and Star have parted ways from their channel distribution joint
venture MediPro as sectoral regulator TRAI has prohibited bundling the
channels of different broadcasters into one bouquet.
Zee Turner and Star Den Media Service, which had the 50:50 JV, will now
establish independent affiliates for the sales of their channels.
The Telecom Regulatory Authority of India had issued a regulation on
February 10 prohibiting distributing houses to bundle channels of
multiple broadcasters into one bouquet.
“In the light of new regulation, both partners have decided to build
independent affiliate sales (network),” Zee Entertainment Enterprises
Ltd (ZEEL) Managing Director and CEO Punit Goenka said in a statement.
He said the JV was set up to address “various anomalies in the analog
market, to curb piracy and introduce transparency for the benefit of all
the stake holders. Thanks to the commitment of both the parties the JV
had delivered exceptionally well on both the sides.”
ZEEL and Star had joined hands in May 2011 to combine distribution of their respective channel bouquets in India.
Zee Turner is a 74:26 joint venture between ZEEL and Turner International Pvt Ltd for distribution of their group of channels.
Similarly, Star Den is an equal venture between Star India and DEN Network.
There were allegations of abuse of market dominance by MediPro. The
Competition Commission of India had however rejected the charge in April
last year after finding no evidence of that.
