New Delhi, Feb 5 (IANS): The SBICap feels that from a strategic player perspective Zee offers entry into the Indian TV market, which is estimated at US $10bn with media properties across genres and languages.

Also it has execution machinery and production capabilities in TV, which may find overlap for creating value in the digital over the top (OTT) space, which in India is estimated at US$3 bn by financial year 2024 and a double-digit growth in subscription income due to further scope for increasing TV penetration, coupled with the new tariff order and rise in high definition (HD) subs.

"Our analysis across global media and internet players suggests that Comcast and Tencent check the boxes from Zee's perspective around technology and geographical expansion and they may find value in both Zee's linear TV assets and brand," SBI caps said in an analysis on the beleaguered channel.

SBICap said OTT is big in the US as more than 90 per cent of US households were streaming enabled while India was at 6 per cent now and reaching 35 per cent penetration implying an investment of upwards of US dollar five to six billion merely in the mile which may be five or six years away.

The analysis said the markets were not pricing in affordability issues around home broadband and smartphones may not be supportive.

It said induction of a strategic partner may help Zee create significant value in the OTT space, not in the price. "It is not in current DNA of Zee to take a lot of risk, this would change with strategic partner coming in. We are assigning a notional value to ZEE OTT investments, markets only building for costs but not assigning any value," it added.