Zee and Star dissolve their channel distribution JV MediaPro

Zee and Star dissolve their channel distribution JV MediaProEntertainment giants Zee Turner Ltd. and Star Den Media Services Pvt. Ltd. have decided to dissolve their channel distribution joint venture MediaPro in order to meet market regulator's new regulations.

Under the Telecom Regulatory Authority of India's new regulations, TV channel distribution companies can not bundle up channels of multiple broadcasters in one package.

In a recent filing with the Bombay Stock Exchange (BSE), Zee said their decision to dissolve the JV was pursuant to the change in regulations declared by the regulator.

Punit Goenka, CEO of Zee Entertainment Enterprises Ltd, said, "We have been very satisfied with the outcome of the partnership. Given the new regulation we have taken a call to continue the business at an independent level."

Goenka added that the JV was formed to address diverse anomalies in the analogue market and cut back piracy.

He also said that the recent tariff order that allowed inflation-linked increase of 27.5 per cent in reference interconnect offer rates for channels would likely provide a boost to the company's subscription revenues.

While Zee claims that disbanding of JV will not hurt its revenues, analysts say the move will have a negative impact on the company as Zee Entertainment Enterprises Ltd has no India cricket in FY15, while Star Sports has very high content.