Punit Goenka, Managing Director and CEO of ZEE Entertainment Enterprises, has given a strong hint that it will be investing over 7% of its operating profit into ZEE5.
On the back of the coronavirus global pandemic, Goenka suggested some changes will be required to its broadcast business, which has changed the way we consume entertainment. On the company’s performance in Q4/20, Goenka said, “I do not see shutdown of niche channels having a long-term impact on our subscription revenue, because with regard to any loss there, the gains we will see on our digital platforms will be far higher.”
He added, “At the end of the day, the audience doesn’t evaporate. The audience has moved from one platform to another. Therefore, we will get our share of that niche content on our digital platform.”
Goenka also reacted to investors and analysts, who have voiced concern that profits in streaming giants is less than broadcasting revenue. “The value of that being so small in the larger scheme of things doesn’t really impact us in the short term, medium term or even the long term,” he stated.