In Q3, ZEEL registered a decline in both international advertising and subscription revenue. Talking about the loss, ZEEL MD and CEO Punit Goenka said in an earnings call that the decline is broad-based which has occurred both in the Middle East market and UK market.
He also mentioned that the loss in Middle East market was largely due to the economic environment but there was also a platform that shut down in the market which completely wiped out the subscription revenue.
Goenka said: “Markets like UK etc. are at some level impacted due to the OTT business and we have taken a conscious call that during the next fiscal we will be shutting of our linear business in these markets and only be available through ZEE5. ZEE5 has seen good traction in certain markets, definitely in Asian market and Europe markets, but we believe that once the linear feeds are out of the picture then we will see even furthermore traction for ZEE5 in these markets going forward.”
He added: “It will be hockey stick thing wherein you will see some more decline happening next fiscal in the subscription revenues and then starting from the fiscal after that you will start to see growth come back.”