Satellite channel majors Sun Network and Network 18 have mutually made entry into the distribution arena, floating two companies for the south and rest of the Indian market.

The new unit will be a truly pan-India distribution company, which eyes to turn one of the leading players in the Rs 16,000 crore distribution space by 2012.

According to the deal, the two newly floated distribution firms will distribute around 33 channels across all platforms in India-cable, direct to home (DTH), Internet Protocol Television (IPTV) and Headend in the Sky (HITS).

Sun Network and Network 18, whose shareholding pattern is still unknown, are christened as Sun18 Media Services South and Sun18 Media Services North.

Sun18 South will look after the south India market and will be controlled by the Sun Network, whereas Sun18 North will control the rest of the India market and will be functioned by the Network18 Group.

Mr. Kalanithi Maran, chairman and managing director, Sun Network stated, "Sun 18 is an important initiative for us in the distribution platform business and is being created with the vision of better leveraging our very successful television brands across the country."

"Distribution is one of the high-growth areas in this industry and we're excited to now have a presence in this part of the business as well," said, Raghav Bahl, founder of Network18 Group. (With Inputs from Agencies)