OTT concerns to remain an overhang for Zee Entertainment; stock falls

The Zee Entertainment stock fell nearly 10 per cent intra-day on worries that its over-the-top (OTT) application Zee5 will weigh on margins.  Analysts at Morgan Stanley, in a report, indicated that intense competition in the OTT space — especially from deep pocketed international players Amazon and Netflix, as well as domestic players such as Reliance Jio — would require Zee to spend on high quality content, thus impacting margins.  They expect margins of the company to fall by 3-5 percentage points and expect the company (Zee5) to break even by 2023, at the e.....

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