Twentieth Century Fox, STAR Create New Licensing Venture

BEVERLY HILLS/MUMBAI, June 21: Twentieth Century Fox
Licensing & Merchandising (Fox L&M) has partnered with STAR India for
the creation of StarFox India, a new licensing division that aims to maximize
the penetration of both Fox and STAR’s film and television properties in India.

The landmark deal makes Fox one of the few U.S.
entertainment companies to have a licensing operation in India. StarFox India
will explore licensing opportunities for Twentieth Century Fox
content—including blockbusters such as Napolean Dynamite, The
Simpsons, and Ice Age—in India, as well as popular local content
airing on STAR India, including Kyunki Saas Bhi Kabhi Bahu Thi. The new venture will allow both FOX and STAR to
leverage each other’s strengths. For example, FOX will be able to utilize its
relationship with STAR—which airs an average of 40 out of the country’s
top 50 Hindi shows—to gain a foothold in the market while STAR will
benefit from Fox L&M’s industry expertise to create licensing and retail
programs for its content.

Currently, the Indian retail sector accounts for an
estimated $225 billion in annual revenue. Worldwide, U.S. licensing reaps more
than $180 billion at the retail level, with more than $20 billion of that
coming from entertainment licensing. Recent estimates on the nascent licensing
and merchandising business in India place current retail sales between $60
million and $75 million annually, opening a sizeable opportunity for growth in
the sector.

Ajay Vidyasagar, the executive VP of marketing &
communication at STAR India, commented: “The
Indian consumer is moving beyond being a need-based shopper and is starting to
make decisions at the counter based on entertainment and lifestyle choices.
StarFox India is therefore well positioned to build on the emergence of such
consumer demand in India by making our popular and highly recognizable
properties readily available across the country.”

“This is a powerful arrangement for both parties as it
enables us to combine our strengths and resources to tap into the rapidly
emerging Indian marketplace,” said Gary Krakower, the VP of international
licensing for FOX. “By partnering with STAR, we have at our disposal an
unbelievable line-up of top home-grown content to leverage as well as instant
credibility with potential local partners.”