UTV, Astro Drop Indian Channel Plans

MUMBAI, December 5: UTV Software Communications has called
off plans with Malaysia’s Astro for launch of a joint-venture channel in India
targeted at young adults, according to local reports.

UTV and Astro inked an alliance towards the end of last year
with the view to setting up a joint venture business to roll out one or more
channels in South Asia and Southeast Asia. A statement from UTV is quoted as
saying: “When the JV was formed in 2006, we were clear that whatever investment
Astro will make will be for Bindaas. During that time Bindaas was not formed.
We plan to launch some 4-5 channels and we also have some very preliminary
Southeast Asia plans. During the first quarter of 2008, UTV realized that it
needs a stronger broadcast bouquet. But Astro was interested to spend only for
brand Bindaas and not for the entire broadcasting bouquet. Therefore, Bindass
has called off its association with Astro, as UTV is in serious and advanced
discussion with strategic investors.”

The news comes amid speculation that Disney will up its
stake in UTV. Disney currently holds about 15 percent of the TV, film and
new-media company, acquired when it took over UTV’s kids’ network Hungama in
July 2006.

—By Mansha Daswani