Daily News & Analysis

New Delhi, Nov 29: After the big-ticket announcement that Shah Rukh Khan is taking over from Amitabh Bachchan to host Star TV's `Kaun Banega Crorepati', here's another instance of synergy between Bollywood and the small screen. On Tuesday, film-maker Karan Johar's company Dharma Production announced partnership with Prannoy Roy-promoted NDTV.

Karan Johar's production company would hold a minority stake in NDTV's `Entertainment' company and the film-maker would be on the board. In an exclusive arrangement, his company would produce shows for the yet-to-be launched `Entertainment' channel of NDTV. Johar, meanwhile, would be the brand ambassador for the channel.

Roy said, “Karan Johar is constantly breaking new ground in quality and transforming Indian movies to world-class standard. He will now help us redefine and set new benchmarks in entertainment television.” In a statement, Johar said this partnership was “a family bonding and I believe in the power of family”. Johar added, “This family is going to be at a TV screen near you, creating all the celebration possible.”

Officials at NDTV did not divulge the quantum of stake that Dharma Productions is picking up in the new entertainment company. The entertainment channel is likely to be launched towards the end of 2007, but the company refused to set a timeframe for its rollout. "Partnership with Karan Johar is the first step towards launching a world-class entertainment channel," a company official said.

Also, there are no answers yet on who would head the NDTV Entertainment channel. There was a buzz recently that the CEO of a leading TV channel would get the top job at the entertainment venture of NDTV. "We will announce the management structure at an appropriate time," according to an NDTV official.

In October, NDTV had announced a plan to expand beyond the news domain. At that point, Roy had indicated that a mass Hindi entertainment channel and more than one lifestyle channels would be rolled out within a year or so. He had also made it clear that there would be partners in many of the non-news projects. They could either be strategic or financial partners.

A new company, NDTV Ventures, will operate the non-news business through focused verticals. NDTV Ventures will be a 100 per cent subsidiary of NDTV in the first phase of expansion. An IPO for NDTV Ventures is not being ruled out.

While it' tough to raise funds for its news business because of government regulations, non-news is being seen as an easier segment to attract funds. Non-news broadcasting is not governed by stiff regulations, unlike in news where the FDI limit is 26 per cent.