NDTV-Genpact Media BPO Deal: SSKI Rates NDTV As Outperformer
By Sahad PV - Thu 30 Mar 2006 05:03 AM PST
Here is an analyst reaction to the formation of India’s first MPO - or media process outsourcing - outfit. NDTV and Genpact created history yesterday by announcing a joint venture which seeks to provide outsourced media services. The joint venture will focus on providing cost-effective, high quality media services to global and regional media and entertainment companies in areas like editing, digitization and closed captioning. This is the first BPO in the visual media space.
A report from Mumbai broking firm SSKI rates NDTV stock, which currently trades at Rs 228-levels, as an outperformer. Here is their justification:
However, in print media, there are several other companies like Cybermedia group, Mindworks Media and Conversant Info Solutions trying to make a mark.NDTV’s business model has been evolving from a news broadcaster to a more compelling and complete media play. With this in view, NDTV is making a foray into media outsourcing services space (editing, digitization and closed captioning) in an alliance with Genpact (GE Cap), half a billion dollar company and frontrunner in the global BPO space. The media BPO venture is first of its kind, and if taken parallel from the IT & ITES outsourcing space, where India accounts for around 4-5% of the global outsourcing, even an estimate of 1% of the media BPO getting routed through India converts into $15 billion opportunity. Given NDTV’s competency in the broadcasting and media space, a strong venture partner and first mover advantage, we are confident that it is best placed to make the most of the opportunity.
Posted in: Main Page





