Pyramid Saimira Owned Spize TV Buys South Asian Content Focused DTH Co WorldTV Europe

Spize TV, the DTH company owned by the Pyramid Saimira group, has acquired WorldTV Europe, the European operations of GlobeCast World TV. Globecast is owned by France Telecom, and also has operations in USA. Spize TV, in which Pyramid Saimira has 51 percent stake, runs a DTH network called RootsGlobal. Group Chairman PS Saminathan has told the Economic Times that they’ll be investing $15 million in the short term to integrate the operations of Spize TV and WorldTV Europe, and invest $50 million in the European operations over the next 2-3 years. Spize is targeting a total subscriber base of 30,000.

WorldTV was launched in 2007 with a South Asia focus - with a channel bouquet that included Sony Entertainment TV Asia, Star Plus, Star One, Max, Star Gold and Filmy, and the services were priced at EUR 299 per year. Since then, they have since expanded their channel bouquet to include Aaj Tak, Sahara One, NDTV 24×7, and Pakistani channels PTV and Geo News. That’s still a fairly limited list of channels.

Saimira and Spize really needs to be careful here - the South Asian piece has been attempted before, at least on the Internet, by a rather adventurous Jump TV, which then decided to focus primarily on the Sports TV business; perhaps the regional content business didn’t find many takers. However, the DTH business is different from the online TV business (wouldn’t you rather watch content on television?) so it’s perhaps not right to compare the two.

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Pyramid Saimira Winds Up Film Distribution In India; Defers Reel Acquisition

Citing high inflation, slackening of demand for entertainment and constraints of margins in leisure industry, Pyramid Saimira is tightening its belt.

The company, which has digital film distribution operations (details), has informed the BSE that given the un-viable cost structure of the Hindi film industry, they are closing down 33 screens and winding up their film exhibition division in Western and Northern parts of India. Reuters quotes Chairman P.S. Saminathan: “We were losing money there, so we withdrew from these areas. We expect the (filmed entertainment) industry will not grow much this year.”

That’s a warning sign for the films business, and and some food for thought for the Digital Distribution business. Remember that Airtel is exploring the Digital Distribution business, and the only two competitors they have in India are UFO Moviez and Pyramid Saimira.

Pyramid Saimira has also decided to drop plans for acquisitions in UK and Europe. Earlier this month, they were reported to be in talks with UK’s Reel Cinema. Reel operates 13 cinemas in the UK - with mostly cult films - and has plans to open seven more in the next two years. Saimira may also defer its $75 million fundraising plans, adds Reuters.

Operations in Malaysia and the USA will continue, given better profitability, as will their film exhibition business in China: they had inaugurated their first theatre in China last week, as a part of a joint venture with the Ministry of Culture.

Related:

– UFO Moviez Group Buys Defunct VoD Service MovieBeam
– Airtel Considering The Digital Cinema Business