Broadcasters will consider FTA offering apart from premium pay TV channel, says Motilal Oswal

MUMBAI: What will broadcasters do with CAS being implemented? Will the FTA channels go pay? Or will the pay channels go FTA?

Motilal Oswal Securities in partnership with Inquire has tried to answer questions such as these in its latest study on CAS. The Inquire report has claimed that broadcasters are unlikely to lose advertising revenues in a CAS environment because it will first spread through the four metros and the share that the major cities have of the overall C&S market is relatively small.

Ø The four metros account for only 15-17 percent of the total 40 million cable subscribers in India. Since the top three networks do not derive any significant advertising revenues from the Chennai market, the effective share of the three metros in total C&S homes is just 10-12 percent.

However, their implied share of advertising revenues on C&S television would be closer to 20-24 percent. If one assumes only 40 percent penetration of boxes in the four metros in the initial phase, about 12-14 percent of the advertising revenues might come under threat.

Ø Box offtake is likely to be higher than expected, Motilal Oswal points out. An analogy can be drawn with the Indian cellular market where the subscriber numbers are growing at about a million every two months. In fact, the market is expected to add about 10 million subscribers in the next year, the level reached over seven to eight years.

Ø Broadcasters (including Zee) are open to floating a mass general entertainment channel to maintain their presence in the basic tier. A new channel can be packaged, branded and floated (using library content or second run programming from the pay channel) in just about a month at a low cost of about Rs 100 million. This would help avert any loss of advertising revenues because of a drop in reach due to low box penetration.

This would also ensure that the broadcaster has its brand present in the basic tier homes to maintain and build recall and to give viewers a laddering option to graduate to their respective pay offerings when they upgrade to a pay channel. Broadcasters will in all probability run teasers on the FTA chanel to lure them to the pay TV service.

Off the record conversations with television professionals have revealed that most of the entertainment channels are actually looking at creating a FTA channel, which would have second run programming, that is, Zee TV could float a Zee Basic which will air shows that will do the run on Zee Premium first.

Latest Reads
Comedy Central sets pace for ultimate celebration with over 100 hours of non-stop FRIENDS ultra marathon for its 6th birthday

Birthdays and New Years are great occasions to make resolutions for participating in marathons. However, this is one marathon which calls for hanging up your running shoes and grabbing the best spot in front of the telly with a bowl of munchies to keep you going because, for the first time ever in...

Television TV Channels English Entertainment
U Sports launches India's first ever Multi-Platform Multi-Game E-Sports Championship - U Cypher with MTV

The Indian E-Sports scenario is all set for a major revamp as U Sports, one of India’s biggest sports business companies in association with India’s No. 1 Youth Brand, MTV, announces the premiere of their all new month-long championship, U Cypher with MTV. Premiering today, on 19th January, the...

Television TV Channels Sports
TV ownership increased by 14% in 2017: IRS

After a gap of four years, the Indian Readership Survey (IRS), which documents the growth of the media industry, has been released for 2017. The survey methodology was criticised in 2014 and, therefore, was halted for an upgrade. This time, the sample size has been increased by 34 per cent to 3.2...

Television TV Channels Viewership
CNN-News18 launches 'If I Were FM Challenge'

As part of its Budget programming, CNN-News18 is launching the ‘If I were FM Challenge’. The campaign will encourage viewers to contribute their suggestions for the Union Budget. The channel will run an extensive on-air campaign to promote the same.

Television TV Channels News Broadcasting
BBC World News to Broadcast 'China's Chat Girls'

Lele Tao is an internet superstar in China’s $3 billion dollar ‘live streaming’ industry. With more than a million fans she can earn thousands of dollars a day singing, dancing, flirting, or often just chatting into her webcam. Fans buy her virtual gifts which she redeems for cash. In return she...

Television TV Channels News Broadcasting
PKL season 6 and 7 dates announced

The second most watched domestic league in India, Vivo Pro Kabaddi League owned by Mashal Sports and Star India announced the dates of sixth and seventh season.

Television TV Channels Sports
Star Bharat leads Hindi GEC (U+R) in week 2 of BARC ratings

MUMBAI: Star Bharat emerged as the leader in the Hindi GEC (U+R) genre dethroning Zee Anmol according to Broadcast Audience Research Council (BARC) all India data for week 2 of 2018.

Television TV Channels Viewership
BARC week 2: Aaj Tak leads Hindi News in all three markets

MUMBAI: Republic TV continues its leading streak in the second week of the year as well in BARC All India ratings. News Nation stays in the top five chart in week 2 of 2018 in Hindi News Rural market. Aaj Tak tops the chart again in Hindi News Urban market.

Television TV Channels Viewership
Dsport acquires India rights of tri-nation tournament in SL

Discovery’s sports channel Dsport has acquired the exclusive India broadcast rights of Nidahas Trophy 2018, a tri-nation international T20 tournament involving India, Sri Lanka and Bangladesh. The transaction was facilitated by Lagardère Sports, the global marketing consultant of Sri Lanka Cricket...

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories