STAR, Balaji Plan New Indian Channels

MUMBAI/HONG KONG, April
20: STAR Group is teaming with production outfit Balaji Telefilms to create a
network of regional-language general entertainment channels in
India.

STAR is creating a joint venture with Balaji—in
which it owns a minority stake—to launch the new channels, initially
targeting the rapidly expanding South Indian market. The venture will be 51
percent owned by STAR and 49 percent by Balaji and will be based in Chennai.
The two companies will combine their resources to infuse the channel VIJAY with
Balaji content. The joint venture also plans to launch a Telugu channel by the
fourth quarter of the year. Channels in Kannada, Malayalam and other key
regional languages will be launched within the next two to three years.

STAR will be responsible for the operations of the
joint venture channels. Balaji will produce regional language shows exclusively
for the joint venture.

Paul Aiello, CEO of STAR, noted: "We are thrilled
with today’s announcement as it marks an important step in the acceleration of
our expansion in the regional markets. Balaji is a production powerhouse in the
country with incredible accomplishments in producing top-rated shows. This new
partnership agreement allows us to tap into its regional language
production capability and have immediate access to a wealth of programming that
is compelling and relevant to the viewer. I believe we have forged the perfect
partnership to expand into
these fast growing and important markets.”

Jeetendra Kapoor, the chairman of Balaji Telefilms,
added: "We are excited about this opportunity to strengthen our
relationship with STAR. We believe that combining the expertise and resources
of the two companies will enable us to create the leading regional language TV
network in the country. This new partnership also helps realize our ambitions
to go upstream by taking a stake in the broadcast business. I am confident that
our investment in this joint venture will generate significant value for our
stakeholders."