Johar's company Dharma Productions will have an equity stake in NDTV Entertainment. The director will also be on the board of the company.
In the television programming space, Dharma Productions will be an exclusive content supplier for NDTV. The channel will have the first right of refusal on any programme that Dharma Productions creates for television.
With superhit films such as Kuch Kuch Hota Hai, Kabhi Khushi Kabhi Gham, Kal Ho Na Ho, and Kabhi Alvida Na Kehna to his credit, Johar is expected to bring a lot of Bollywood content to the channel.
NDTV President Prannoy Roy said: "Johar's films are world-class. We know he will now help us redefine and set new benchmarks in entertainment television."
NDTV's entertainment channel is expected to hit the small screen by the middle of next year. It will compete with the top three players - Star Plus, Zee and Sony - in the Rs 1,600-crore (Rs 16 billion) Hindi general entertainment space.
But a top NDTV executive does not see that as a deterrent. He said: "In television, once you get your distribution right, there is no first mover advantage as long as you have a recognised brand name and great content.
Besides, with distribution platforms such as DTH, CAS and broadband coming in, viewership will be measured on the quality of audience rather than just TRPs."
The entertainment industry is in a bit of turmoil with Zee showing signs of a comeback and Star Plus roping in Shah Rukh Khan for Kaun Banega Crorepati III to woo its audiences back.
NDTV Ltd operates three news channels,- NDTV India, NDTV 24X7, and NDTV Profit. Last year, it joined hands with Malaysia's media major Astro and Indian software company Value Labs to acquire three FM stations run by Aroon Purie's India Today group under the RED FM brand name.
