Reliance BIG entertainment

Reliance's media and entertainment arm BIG was to launch 20 TV channels during end of the year covering genres such as music, movies, kids, entertainment and news. However, company reports that it is no longer ready to enter the market and will postpone the launching. This rescheduling is in lieu of current market conditions and company's strategic decisions.

Also, BIG entertainment is in process to start new vertical dedicated to movie marketing, media planning and buying and creative. This vertical will cater to internal needs of BIG entertainment.

One aspect of having own TV channels is that in near future; IPTV is going to become buzz word in industry and customized channels will play major role in acquiring market share for all players. With Reliance IPTV services ready to launch during later this year, having personal TV channels will make big difference and give an extra edge to reliance.

Finally, we can say that Reliance is coming in E&M industry in BIG way. Company's plans seems to be gigantic. However, success of such business largely depends on marketing and content. It will be interesting to see when company tests the water. Till then keep your fingers crossed!

Smart Move by Reliance: selling 20-26% stake to foreigh partner

Reliance Communications is set to sell up to 26% stake to foreign partner, says ET report. Report also says that this money will be utilized for auctions for 3G spectrum allocations. Reliance communications is India's second largest telecom operator by number of subscribers.

I would say that this is smart move by reliance. Reliance is the only operator which doesn't have any foreign partner. Also, with strong optical fibre backbone network and presence across the country makes it capable of distributing 3G services easily and efficiently. RCom would be utilizing these money for 3G auctions. Also, by collaborating with foreign partner, they will gain access to knowledge asset of their foreign counter part and develop skills necessary for 3G implementation. So, local reach and global expertise will result in to efficient 3G distribution for Reliance. Apart from this, they will get some cash in hand to bid for 3G spectrum.

I would say, this is right choice at right time. Perfectly targeted strategy - something to learn for business strategy makers.

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