ZEE5 Set to Gain Traction From Original Content

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ZEE5 and Sun NXT, the over-the-top (OTT) streaming platforms run by ZEE Entertainment Enterprises and Sun TV are “expected” to drive up the subscription revenues for the respective companies, say analysts. In the first quarter results of the current financial year, multiple analysts expect the broadcasters including ZEE Entertainment Enterprises and Sun TV to record a “sequential dip” in advertising revenues. However, the analysts say the broadcasters are set to witness a “sequential growth” in subscription revenues on the “back of OTT revenues momentum,” with TV subscriptions remaining “largely flat” on a quarter-on-quarter (QoQ) basis.

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OTT Platforms Set to Drive Up Sun TV, ZEE Subscription Revenues

ICICI Direct on Thursday said in a report that Sun TV in its first-quarter results is “expected” to report a 3.5% increase in its subscription revenues on a QoQ basis. However, the retail broker and financial product distributor in India expects the broadcaster to report a “flattish” subscription revenues on a year-over-year (YoY) basis in its first quarter of its current financial year. The firm said that the Sun TV subscriptions revenues will largely be “driven” by its streaming platform Sun NXT.

Further, ICICI Direct said that the ZEE5 performance and the viewership trend are a “key monitorable” for ZEE Entertainment Enterprises in its first-quarter results.

“Reported subscription growth is expected at ~3.3% YoY (up 2.5% QoQ), largely owing to OTT revenue traction,” ICICI Direct said in its report on Thursday.

In late May, ZEE Entertainment Enterprises reported its 2021 fourth-quarter results, with its chief financial officer, Rohit Gupta, highlighting that the ZEE5 platform recorded Rs 110 crore in revenues during the quarter. It was also said that the ZEE5 platform for the month of March recorded 61 lakhs daily active users (DAU) while its global monthly active users (MAU) were at 7.26 crore.