Sun is also getting into movie production as a cushioning strategy against the high rise in acquisition costs. Initially experimenting in Tamil language, the company will be investing around Rs 400 million a year as it focuses on in-house production of small-to-medium budget and script-driven movies.
"Sun has an annual spend of Rs 1 billion for acquiring movie telecast rights. It also plans to invest around Rs 400 million a year on film production in Tamil language," a source close to the company said.
As earlier reported in Indiantelevision.com, Sun Pictures, the movie arm of Sun TV Network, plans to produce 10 films a year in Tamil language as a serious effort to reduce pressure on cost of acquisition of movie rights for its TV channels. Sun has also plans to later produce in the three other southern languages where it runs a clutch of channels.
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Sun Pictures has already announced it would be distributing films like Atlantic Cinema’s ‘Kadhalil Vizhundhaen’, Sundar C’s ‘Thee’, Jeeva’s ‘Thenavattu’, ‘Siva Manasula Sakthi’ and Narain-starrer ‘Pookkada Ravi’.
Sun Group expects to suffer a loss of around Rs 500 million in its radio business for the fiscal ended 31 March 2009. Even as there will be growth in advertising revenue, the profitability will be hit as many of the FM radio stations are in investment mode.
Sun is likely to reap a revenue of Rs 660 million from DTH (direct-to-home) operators during the fiscal for providing its network of channels.
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