Balaji Telefilms has partnered with Xstream, an OTT solution provider and Diagnal, another OTT company to power its yet to launch streaming service ALT Balaji. Xstream’s video management system Xstream MediaMaker will be used for ALT Balaji’s solution on different devices, whereas Diagnal will look after the front end design, development, big data and systems integration.
ALT Balaji was announced last year and plans to develop on demand, original and exclusive content for online audiences globally with a launch scheduled in Q2 this year. It uses Amazon Web Services and will be a subscription based video on demand service available across multiple devices, aimed at a young audience. Xstream MediaMaker lets operators, broadcasters and content owners create, manage, deliver and monetise internet TV solutions across regions, languages and devices, using a workflow management to simplify internet TV.
Note that in July 2014, mobile video and media company Vuclip had inked an agreement with Balaji Motion Pictures to offer Balaji’s full-length Bollywood movies to its users.
Fundraise through stake dilution
Last month, the production house said that it would be raising Rs 150 crore from a clutch of international investors by selling 14% stake in the company. The funds would be used to launch and grow of ALT Digital, its digital content business. In November 2015, the company had denied specific intention of selling a stake in its digital business to a global company.
Second go at ALT Digital
Note that in August 2015, Balaji Telefilms announced the launch of “ALT Digital Media Entertainment Limited”, as the group’s foray into the digital content business, and “the next growth driver for the Company.” This was the group’s second attempt at digital: it had first launched a series of digital initiatives a little over five years ago, in June 2010. In December, it appointed Nachiket Pantvaidya as chief executive officer of ALT Digital Media Entertainment. Pantvaidya would be responsible for the the profit and loss of operations, content, marketing, distribution and revenues of the company. It also made multiple other appointments at that time, including appointing Sunil Nair as chief operating officer, who would be responsible for building an original video on demand platform and establishing a distribution network.
For the quarter ended December 31, 2015 (Q3 FY16), Balaji Telefilms reported a net profit of Rs 20.66 crore as opposed to a net profit of Rs 3.09 crore in the same quarter last year, a growth of 569%. Balaji Telefilms revenues stood at Rs 72.03 crore growing 26% from Rs 52.27 crore in the same period last year. EBITDA grew 325% year-on-year to Rs 18.05 crore from Rs 4.25 crore in the same period last year.