Zee Entertainment (ZEE) has launched its digital platform ZEE5, with 8-9 original titles across genre and languages to start with. It targets to subsequently come up with six original titles every month. Viewers can subscribe to this service at a promotional offer price of INR99/month ??? at ~50% discount to Hotstar's pricing. We believe the incremental cost toward ZEE5 could be INR500-700m, implying an 80-100bp impact on the EBITDA margin. Despite this, we believe it can improve the EBITDA margin by 200bp over FY18-20, led by healthy operating leverage. We assign 35x P/E on Dec'19 EEPS of INR20 to arrive at a TP of INR705. Maintain Buy