Sony set to challenge Star's dominance in cricket broadcast industry

After quite some speculations Sony Pictures Networks India (SPN) and Ten Sports Network from Zee Entertainment Enterprises signed a much-awaited deal as Sony acquired TEN 1, TEN 1HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket, TEN Sports for $ 385 million (about Rs 2600 crores).

With the acquisition, Sony has spread its web around in the broadcasting industry and are well and truly offering a challenge to the dominance of the Star Network, the no.1 sports broadcaster in the country at the moment.

However, the deal will take 5 months to complete and Sony has informed that they have no intention of changing the branding of TEN in the near future. One of the biggest advantages with the acquisition is that TEN earns close to Rs 400 crores from its distribution network in India and several other countries, including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East and the Caribbean.

Sony will also have broadcast rights of some of the major cricket boards (South Africa, Sri Lanka, West Indies and Zimbabwe). They also broadcast major sports shows like WWE, UEFA Champions League, UEFA Europa League, French League, English Football League Cup and a few WTA, ATP events, Asian Games, Commonwealth Games and Tour de France.

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“We have done our due diligence. Ten Sports has a strong market which has existed for close to a decade and has a strong portfolio of sports rights. It also has a solid footprint, not just in India but outside as well. It also comes with a strong steam of revenue and the deal will complement our existing rights and help use monetise all the properties,” NP Singh, the CEO of Sony was quoted by Mumbai Mirror.

This is also a big deal for ZEE, that is struggling without much of Indian cricket. “This is a landmark deal for ZEE and a step towards a strategic portfolio shuffle as we grow our general entertainment business both in the domestic and overseas markets,” said Puneet Goenka, the MD of the company.

“At this crucial juncture post making this business profitable and attractive we have taken a strategic decision to divest ourselves from the sports business. The transaction is likely to take 4 to 5 months to conclude during which period I expect all of you under Rajesh’s (Sethi, the CEO) able leadership to continue the great work to ensure smooth transition,” the mail to the TEN staff read.