Specials

Indian TV ad spend to grow @ 14%: PwC

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/event-coverage/2016/04/06/ficci_0.jpg?itok=o2sJCjyr

MUMBAI: Television advertising in India is expected to grow by 14 per cent by 2007, while over the next one year the increase is likely to be over 12 per cent. The scope for growth is there as at present India spends less than 0.5 per cent of its GDP on advertising.

The television software sector too has been projected to grow at the rate of 16 per cent annually to touch Rs 300 billion by 2009, according to a Ficci-PwC report titled `Indian Entertainment Industry: An unfolding Opportunity,' which was released this morning at the Frames Convention.

Over the next four years, advertising on Indian television will be driven by niche content as the ad community goes about targeting specific consumers. Simultaneously, this trend will give content producers a chance to expand the pie.

The report, part of which was released to the media earlier and reported by Indiantelevision.com, indicates that the Indian entertainment industry will grow yearly at the rate of 18 per cent to reach Rs 450 billion in by 2009.

In the short term, growth in television is expected at The rate of 14 per cent, while the number of C&S homes is expected to grow at the rate of eight per cent. The report has estimated the current base of cable homes at 50 millions.

Dwelling on the inadequacies in the cable industry, the report says that the loss to broadcasters is immense as they only collect a third of the revenue due to them. Assuming the monthly cable rate is Rs 125 per subscriber, broadcasters should get Rs 75,000 million, but in reality only Rs 25,000 million flows into the kitty.

The report notes that in the future, corrections in the regulatory mechanism will result in increased subscription revenue for broadcasters and growth in digital distribution formats.

Pointing towards some trends in the broadcast industry, the report says that crossing over is the buzzword in the Indian television segment. Music channels are launching soaps, news channels are foraying into lifestyle shows and soap reviews, regional channels are taking away viewership from mainstream channels and the mainstream broadcasters like Star and Zee are looking towards South India. If this was not enough, Sun is reported to have signed up a deal with Malaysia's Astro All Asia Network to originate and distribute content for a global audience and the ABP- Star alliance is planning a Bengali channel.

In the future, the focus of channels will shift towards content localization as audience fragmentation is increasing. On the regulatory front, the report says that a new era will be ushered in with the passing of sector regulator's interconnect order, which, however, is being resisted by some players in the broadcast industry.

On the sports front, the report is optimistic that games like hockey would get a tremendous fillip with experimentation being done to make the game TV friendly. As an example, ESPN Star Sports association with the Indian Hockey Federation to create the Premier Hockey league has been cited.

Another trend cited by the report is that of increasing dubbing happening in the films segment. Three of the top 10 films on TV were dubbed in Hindi and other Indian languages and have proved to be successful. For example, The Lost World on Star Plus got a TRP of 8.52.

As far as the films segment is concerned, growth of 18 per cent is projected. But slowing down this positive trend is rampant piracy that has been calculated to be as high as 40 per cent.

The growth of multiplexes and digital cinemas will fuel activity in this sector, the report states, pointing out that one of the growth drivers is international cinema being dubbed in Indian languages, including Hindi. Though the hype surrounds Hindi cinema, but the PwC report makes it clear that regional cinema is growing in as Hindi fare accounts for only 40 per cent of the market. The trend of confinement of regional films in local areas is changing.

Another revenue source for films that will grow is in-cinema advertising. As movie viewing becomes more organized, advertisers can reach this hard-to-get demographic profile. The report says that advertisers are choosing films that overlap with their own target audience.

Fuelling the boom in multiplexes business is the growth being witnessed in retail sector. Making it clear that quality of service is an important ingredient for multiplexes in drawing patrons, the report states that alternate sources for revenue --- like live sports events --- are also being explored by multiplex owners. Interestingly, Andhra Pradesh has the largest number of theatres in the country.

On the radio front, the report notes that survival of private FM radio stations will depend on the level and structure of license fee decided by the government. Positive and timely regulatory framework is what players are looking for, the report says, adding this segment offers maximum growth potential, which is evidenced by players that are not in the entertainment sector flirting with FM radio business.

The report also goes to state that radio's low ad sales rates ,compared to television, will make it attractive for local and small advertisers. Almost 3/4th of radio's ad revenue comes from local and retail advertisers. The Size of the radio ad market is estimated to be at Rs. 2,400 million. This could go up to Rs. 6,500 million by 2009. This will happen if the regulatory framework is rationalized, the report points out.

On the music front, there has been a reduction on dependence on film music. Music on mobile phones grew in popularity last year when emergence of another trend was seen --- a more participative model of risk sharing between film producers and music companies.

A growth driver for the music segment is talent nurturing through reality and music shows. An example: Indian Idol.

The distribution segment of the music industry has become more corporatised, the report said, adding this has given rise to innovations too coming in like tie-ups with coffee chains to promote sale of music.

The size of the music industry has been estimated to be around Rs. 6,700 million. A three per cent yearly growth is expected, which will help the industry be worth approximately Rs. 7,770 million by 2009. Anti-piracy measures have helped the music industry.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/31/partners-forum-2018.jpg?itok=32stUU5O
India To Host Fourth Edition of Global Partners’ Forum 2018 in December

This year, India will play host to the largest-ever Partners' Forum on 12th and 13th December 2018 in New Delhi. PMNCH (The Partnership for Maternal, Newborn & Child Health) will bring together 1,200 partners from over 100 countries dedicated to the Every Woman Every Child (EWEC) movement and...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/22/SEPCsangeeta.jpg?itok=jhtLTefb
SEPC pavilion makes waves at MIPCOM 2018

It was indeed a historic moment for India’s content creation, distribution and broadcast industry at this year’s MIPCOM which concluded at Cannes, France on 18 October 2018. More than 300 Indian delegates swarmed the French Riviera village – the largest delegation in the Reed Midem market-cum-...

Specials Event Coverage Mipcom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/06/avia.jpg?itok=njOnU16F
Casbaa becomes the Asia Video Industry Association

At an Extraordinary General Meeting of members today, Casbaa overwhelmingly approved the adoption of a new constitution and new name.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/07/31/balle.jpg?itok=cQD_OGYf
Wizcraft’s 4th broadway styled bollywood musical stage show comes to kingdom of dream

After a glorious run in Mumbai with over 100 shows, Balle Balle - The Biggest and Craziest Indian Wedding Musical theatrical show, is all set to woo audiences in Delhi NCR.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/07/06/asiasat.jpg?itok=31_HQ_RK
ConnecTechAsia Successful in Bridging the Digital Divide for Governments, Cities and Enterprises with Showcase of Latest Tech and Trends

ConnecTechAsia, the inaugural mega technology event comprising BroadcastAsia, CommunicAsia and the new NXTAsia wrapped up last week after an exciting three days of exhibitions and a summit covering the latest innovations in cloud, blockchain, AI, VR/AR, IoT, robotics, 5G, IP broadcasting, OTT and...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/06/25/block.jpg?itok=746SRwdG
Lessons Learned With Bitcoin

Blockchain technology is one of the newest buzzwords in business. It is hardly surprising considering that the tech is having such an impact over so many different industries.

Specials Promonet feature
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/06/05/ril.jpg?itok=srJ0kbdQ
The company is collaborating with Lakme Fashion Week and designer Anita Dongre

World Environment Day - 2018 is going to be special as India is hosting global celebrations of the event today. To commemorate the occasion, Reliance Industries Ltd (RIL) has launched a special T-shirt, branded ?The Earth Tee? and designed by renowned fashion designer Anita Dongre, under its unique...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/04/11/promax_0.jpg?itok=mwaud0s2
Promaxbda India 2018 announces Puja Vohra and Glenn Urquhart as their masterclass speakers

PromaxBDA India has announced its first 2 Masterclass speakers for the 15th edition of its annual conference and awards property in India, which will take place on 23rd May 2018. Speaking at the Masterclass are truTV?s Puja Vohra and creative mastermind Glenn Urquhart.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/03/19/goafest.jpg?itok=82nEDNeJ
ABBY Awards 2018 shortlists announced

The coveted ABBY Awards that recognizes and rewards excellence across Advertising, Marketing and Media has now announced that the shortlists for the 2018 edition have started being posted, by category.

Specials Event Coverage Occasions

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories