The Hindu Business Line : Broadcasting biz: Nimbus hopes to break even in 2 years

Graduating from a service provider to floating its own channels, Nimbus Communications expects to break even in the broadcasting business within two years of launching its cricket-centric channel — Neo Sports.

Betting on the popularity of the game, Mr Harish Thawani, Executive Chairman, Nimbus Communications, said: "Cricket continues to have the highest reach across the country while other genres including soap operas are on the decline. We expect to break even within a year and a half of launching our new channel Neo Sports."

Second channel

Close on the heels of launching its first channel, Nimbus would be unleashing its second channel— Neo Sports Plus, which would have sports related entertainment programmes, followed by a Neo Sports News — an exclusive news channel, which would make its debut next year.

Having sold air time and acting as licensors for broadcasters such as Sony and Star in the past, Nimbus is now investing behind launching its own channels.

"Previously we did not have deep pockets but now with almost Rs 350 crore coming in we have emerged from a service provider to a consumer product manufacturing company," explains Mr Thawani.

With its existing experience in ad sales, Nimbus expects to sell the ad spots for its own channels as part of annual and five-year deals.

For instance, for a typical 5-year deal, it would charge its founder sponsors between Rs 150 crore and Rs 275 crore while annual deals would attract Rs 8-12 crore. Recently, Nimbus appointed Star India as distribution partner. "We already have a long standing relationship with Star and since they operate in almost every segment of the market, we expect it to give us deep penetration of our channels, Besides they also have a track record of honouring payment obligations and knowledge of new media such as DTH would also help us," states Mr Thawani.

Expecting the sports broadcasting channels to consolidate in the near future, Mr Thawani predicts that there would a limited number of broadcasters in this genre.

"There would be market consolidation with space for just about three players. While ESPN would continue to be the leader, there would be room for just about two more players and the lead would keep changing hands between the channels. Smaller broadcasters such as Zee Sports and Ten Sports might find it tough since there are not too many rights to be bagged," says Mr Thawani.

Exclusive rights

A distributor/owner of cricket rights and producer of cricket coverage, Nimbus Sport, a subsidiary of Nimbus Communications, would exclusively market media rights of ICC events in South Asia and sponsorship rights worldwide.

At present, it distributes all commercial rights of the Afro Asia Cup worldwide, sponsorship & signage rights of the Pakistan Cricket Board and global media rights of the BCCI. It is also the producer of the world feed of the ICC Champions Trophy 2006 and all international cricket to be played in India till March 2010.

Nimbus Sports Broadcast is the new company promoted by Nimbus Communications Ltd to own and operate the Neo Sports channels.

The Neo Sports channel, which is being positioned, as "the Home of Indian Cricket on TV" is a dedicated 24-hour cricket channel and will focus on various cricket related programming including live coverage of cricket.

It will debut with the Challenger Series for NKP Salve Trophy from October 1.

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