Sony-Zee merger expected to get completed by end of H1 FY24: Sony Corp CEO

The anticipated merger between Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Limited (ZEEL) is expected to be completed by the first half of the current fiscal year ending March 31, 2024, Sony Corp. Chairman and CEO Kenichiro Yoshida said during the company's annual corporate strategy meeting on Thursday.
"By the end of the first half of this fiscal year, we are trying to complete the merger with ZEEL," Yoshida said, adding that the Indian media and entertainment (M&E) market is ripe for accelerated growth due to its large population and the creative talent that exists in the country.

"India has become the most populous country globally. There are so many growth opportunities in India, especially in entertainment. India is a creative country, and it has become the biggest producer of films since 2005," he said.

Yoshida also noted that half of India's population is below the age of 30. This, he said, presents a huge opportunity in areas like anime and gaming. "There is great potential for growth in India in these areas," he added.

Apart from Yoshida, the meeting was also addressed by Sony Corp. President, COO, and CFO Hiroki Totoki. NP Singh, MD and CEO of SPNI, also gave a presentation on the opportunities in the Indian M&E market and the progress made by the company in its 2.5 decades of existence in the country.

Totoki noted that Sony began its journey in India with electronics and later expanded into entertainment. "Now, the proportion of entertainment is bigger than electronics in India. We feel that this is a compelling market," he said.

He also sounded bullish on India's future growth prospects. "In Asia, India is showing the fastest growth rate," Totoki added.

Talking about the company's core philosophy of kando (which translates to the power of emotional connection), Yoshida said Sony has been spreading kando in India since the 1980s. "Sony India, which leads the electronics business, has been providing products that create and deliver kando," he stated.

He added that the company's music label, Sony Music Entertainment India, holds more than 20% market share in India and is engaged in expanding the local music business through the creation of new labels and the acquisition of Bollywood music catalogues.

SPNI, he said, delivers Kando content through media networks and a direct-to-consumer (DTC) service, which it started operating in 2013.

He added that Crunchyroll, which is also available in India, has been streaming Hindi-dubbed content since last year. The Sony Corp.-owned streaming service is billed as the world's largest anime streaming service.

"Going forward, we would like to further expand creation rooted in local culture through our expected merger with ZEEL," he stated.

NP Singh, who has been with SPNI for over two decades in key executive roles, said in his presentation that the merger deal with ZEEL will help the company expand its Kando content creation capabilities.

"In 2021, we announced the signing of a deal to merge ZEEL into SPNI, which upon closing will enable us to expand our Kando content creation and strengthen our connection with diverse communities within India. The closing of the transaction is subject to regulatory approvals," he said.

Singh said India’s M&E industry is expected to reach a market size of over $60 billion with a CAGR of 10% by 2030.

He stated that the SPNI has 26 channels reaching 700 million viewers in 167 countries. He also highlighted that SonyLIV has 40,000+ hours of content in eight languages and 33.3 million subscribers, including partner platforms.

"SPNI has made significant investments in sports, including key cricket properties, UEFA tournaments, World Wrestling Entertainment, and Grand Slam tennis, to name a few," he said.

Sony also said that SPNI's Hindi GEC, Sony Entertainment Television India's YouTube channel, is the third-most subscribed channel in the world with 156 million global subscribers.

He also revealed that SPNI and Sony Research India have collaborated to develop AI models such as video analytics, recommendation engines, and speech recognition. Singh also noted that SPNI has teamed with Sony Music and Sony Interactive Entertainment to support local Indian artists and game development talent.