Television

Distressed, news channels seek rescue in digitisation

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/11/17/Untitled-1_45.jpg?itok=TvV-u9uw

NEW DELHI: Stung by high carriage costs and a slump in advertising rates, television news channels are looking at tapping subscription revenues to drive growth.

The subscription income of news channels is pegged at around Rs 2 billion, but is restricted to only a few players like CNBC TV18, NDTV, TV Today Network and Zee News.

“We have to open up subscription revenues. There is a future there,” said TV Today Network CEO and executive director G Krishnan, while speaking at the 4th News Television Summit organised by Indiantelevision.com.

News channels are struggling, as they depend heavily on advertising revenues, and media buying agencies do not give them a fair ad price commensurate to their reach.

“We are not given a premium for the impact that we have. We are treated like commodities by the media buying agencies,” Krishnan said.

Madison Media CEO Basab Datta Chowdhury, however, did not agree. “The news channels deliver a genre share of 7 per cent while they command a revenue share of 11 per cent. So there is a premium that is given to them. The problem is that there is a plethora of news channels and it is very difficult to differentiate. News is commoditised today,” she said.

The rise in advertising revenue, though, has come from more inventory utilisation than an increase in ad rates.

“The 10-second rates have come down. Ad revenue is growing because news channels have flooded the market with inventory. That’s a mistake we have done,” said Krishnan.

        

  News channels have as high as 20-22 minutes of commercial time per hour of telecast, a path they do not prefer to follow, but are led to by a softening of ad rates.

MCCS (which owns and operates Star News, Star Ananda and Star Majha) CEO Ashok Venkatramani said the value of the content of news channels does not get realised by the agencies. "Media buyers do not look at the profile of audiences. On the cable TV front also, we do not have transparency. There is no proper mechanism at all,” he added.

BAG Films & Media CMD Anurradha Prasad urged the news broadcasters to get together to fight against “unreasonable carriage fees” demanded by the multi-system operators (MSOs).

“It is a rat race out there and broadcasters should collectively fight against high carriage fees. And on the advertising front, we are not paid for the reach that we have. We are not getting the kind of revenues that we had anticipated,” Prasad said.

Media Network and Distribution (India) Ltd (a joint venture with Bennett, Coleman & Co Ltd) Yogesh Radhakrishnan believed at the crux of the problem was the rapid growth of the media industry in a short span of time. “The Indian TV market had grown too fast too soon. But post digitisation, news channels can drive subscription revenues and up ad rates as they create differentiated content,” he said.

Krishnan, however, is bullish about the TV news industry. “Currently the ability to grow is limited. But five years down the line, we will see strong growth. Digitisation will lower our carriage fees and we can fetch more pay-TV revenues,” he said.

The challenge for the news broadcasting industry, thus, is to cap ad inventory, aggressively chase subscription revenues and create value for advertisers.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/zee-cafe.jpg?itok=LQSATwrr
The Kitchen Is Set Ablaze Once More As Famed Reality Show MasterChef Australia Season 8 Airs Weekdays On Zee Café

Mumbai:  If you’re thinking of brewing something new today, then look no further. Catch the best of Famed reality cooking show, MasterChef Australia Season 8 as

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/the-unxplained-with-william-shatner.jpg?itok=CVmLNqvu
HistoryTV18 investigates the world's most inexplicable mysteries on 'The UnXplained with William Shatner'

MUMBAI :Have you heard of birds that predict disasters days before they take place, or sinister cults that manipulate hundreds of people to willingly take their own lives? Can science explain why some areas just seem strangely evil, and is there any truth behind ancient stories of unearthly...

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/the-honey-bunny-show-with-kapil-sharma.jpg?itok=VNodsRLk
Kapil Sharma and Sony YAY! collaborate to give a festive treat to all Honey Bunny fans

MUMBAI: This festive season, in a bid to deliver the ultimate laughter riot to its audiences, Sony YAY! brings in the comedy king of Hindi television entertainment, Kapil Sharma to the ‘Jholmaal’ gang. Keeping in mind the endearing bond kids share with Honey and Bunnyand massive fandom of the...

Television TV Channels Kids
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/chrmoe.jpg?itok=r-kJhXkS
English GEC emerges as top gainer in Chrome DM week 38

MUMBAI: After seeing a noticeable spike in week 37, the television genres have witnessed slight growth in week 38. English GEC genre has become the top gainer in week 38, 2020 of Chrome Data Analytics and Media data. The genre has grown by 0.71 per cent. Among English GEC channels, Comedy Central...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/news18.jpg?itok=Vmbwrold
News18's extensive programming for Bihar assembly elections

NEW DELHI: As the excitement builds up for the upcoming assembly elections in Bihar, the first amidst the Covid2019 pandemic, major political parties are gearing up for a fierce battle. Capturing the latest happenings from ground zero, News18 Network’s News18 India and News18 Bihar-Jharkhand, have...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/ll.jpg?itok=O-Vh_-oI
BARC is not keen to take part in industry rivalry: Sunil Lulla

MUMBAI: Eight years ago India’s viewership monitoring agency Broadcast Audience Research Council (BARC) was born. Its conception was the result of an unhappy industry and several Telecom Regulatory Authority of India (TRAI) interventions that resulted in the  shutting down of viewership ratings as...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/movie.jpg?itok=FveQupzY
It's back to the movies in West Bengal from 1 October

Cinema owners in west Bengal are heaving a sigh of relief. West Bengal chief minister Mamta Banerjee today announced that cinema halls can start screening films for the public come 1 October.

Television TV Channels Movie Channels
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/26/bigbull.jpg?itok=O25BaJ_c
The Big Bull makers to appoint Covid2019 watchdogs on set

MUMBAI: The makers of The Big Bull are set to start work on the final schedule from mid-October. To ensure the health and safety of cast and crew, producer Anand Pandit has decided to appoint Covid2019 watchdogs on the set. The Big Bull directed by Kookie Gulati stars Abhishek Bachchan and Ileana D...

Television Production House Post Production
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/26/zee.jpg?itok=az0FRQlW
Zee Telugu unveils the title song of ‘Nagabhairavi’

A new daily soap titled Nagabhairavi is all set to entertain Zee Telugu audience this festive season. The fantasy drama stars Muddha Mandaram fame Pawon and Yashmi Gowda as leads while Gundamma Katha fame Kalki Raja and Ashwini play pivotal roles. The promo has created a great deal of buzz since...

Television TV Channels Regional

Sign up for our Newsletter

subscribe for latest stories

* indicates required