After brokerage firm Morgan Stanley downgraded Zee Entertainment Enterprises Ltd (ZEEL) stock to 'underweight' from 'overweight', the company on Thursday said 'Zee5' will be our next big bet in terms of investments and viewers.
Zee5, the over the top (OTT) platform of ZEEL, will break even between three and five years period, said Punit Goenka, managing director and chief executive officer to CNBC-TV18.
According to Goenka, Zee5 is on track to be the number one entertainment app in India over the next 12 months
"We are seeing a lot of traction on the OTT platforms and there is no worry yet on the television side of consumption. If you look at the television growth itself, over the last year, we have seen growth in number of television households. We have seen growth in time consumption per consumer on a daily basis," Goenka said.
“The analyst in the Morgan Stanley report has estimated revenues for Zee5 for financial year 2021 (FY21), I will beat those this quarter (Q2FY19),” he further mentioned.
The shares of ZEEL have fallen more than eight percent and are trading near their 52-week levels after brokerages downgraded the stock.