MAM

NTO ambiguity resulting in ad rev drop for small broadcasters, niche channels

Advertisers to benefit with further consolidation of the viewership pie

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/09/04/teai.jpg?itok=ls9YlWWW

MUMBAI: Just when it felt like the dust on the NTO had settled, Telecom Regulatory Authority of India (TRAI) came out with yet another consultation paper reviewing the order, seeking more fundamental changes in channel pricing and bouquet formation. As clarified by TRAI chairman RS Sharma, while the regulatory body does not plan to revise the pricing framework, it is surely looking at fine-tuning the existing parameters as consumers are facing certain issues because of the current set of rules.

This has once again left a big question mark on the fate of broadcasters and might have a bigger impact on advertising revenues as well.

Y&A Collective co-founder S Yesudas told Indiantelevision.com that this uncertainty over the tariff order and channel pricing will impact nice channels the most, resulting into a dip in their revenue.

He said, “The biggest sufferers will be niche channels, particularly those which are mid and bottom-rung. Even as the power to choose rests with consumers and the general mindset of sensitivity for the paid-for options resulting in those always taking precedence, the snacking-in viewership will reduce.  Between the two time periods, pre-new tariff order to July 19, there’s apparently already a drop of approximately 7 per cent of the total TV impressions. This will consequently mean revenue reduction.”

HyperCollective founder and CCO KV Sridhar (Pops) also agreed that the past few months have seen a dip in the revenues for broadcasters, barring a few big ones, because of many reasons like the economic slowdown and growth of digital bouquets, along with the NTO.

“The NTO is putting a lot of pressure on the broadcasters and some easing out is required, maybe not so suddenly but definitely. The bigger groups like Star and Sony can survive in the turmoil, but it is difficult for smaller groups, especially independent channels and some regional channels,” he said.

TheSmallBigIdea CEO & co-founder Harikrishnan Pillai shared that this ambiguity over the tariff might result in advertisers taking their money to digital platforms than spending on television.

He said, “One needs to reckon that any industry with fluttering policy fuels questions on its stability. While TV broadcasting is the most robust of all mediums, the effect of such policy-based tremors cannot be ignored. Especially by smaller TV channels, which already are fighting for eyeballs. It is likely that they might be ignored by the advertiser for other lucrative digital options. Investment into fresh content might take a back seat, which might further make it difficult for certain channels to attract advertisers on the back of new shows."

Sridhar also noted that the loyalty of the consumer is with the content and not the channel. If they can access the same content on OTT platforms or other media, they will not want to spend on purchasing the channels.

He further elaborated, “Advertisers are interested in viewership only. Also, they would play their ads during the content that is relevant to them. They are not going to place an ad on your channel even if you offer cheaper slots, or guarantee greater reach. Every advertiser is looking for relevant content now. If the content is not good, your channel will drop. OTT, therefore, is a big hindrance for the broadcasters in getting revenue.”

While the tariff order seems to be generating problems for the broadcasters, Yesudas feels that it will be beneficial for the marketers and advertisers. He said, “Marketing and adverting industry will only stand to gain from this as there will be further consolidation of the viewership pie.  While the top-rung channels will find a place in almost all media plans (with reduced  cost per contact) the mid-and bottom-rung channels which no longer can only stay focused on transactional and passive advertising time selling will also embrace true innovation in helping clients solve certain marketing challenges within a segment of consumers, they can influence.”

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/09/evermedia.jpg?itok=PfJ-kZtA
Everymedia Technologies wins perception management mandate for Alpha 7 Seas

MUMBAI: Everymedia Technologies, widely acknowledged as one of the top 10 independent media- tech companies in India. It has won the perception management mandate for Alpha 7 Seas, a renowned strength and conditioning gym founded by Vedharth Thappa, the fittest man in India 2016, 2017 and 2018.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/09/idate.jpg?itok=CQh0mPz7
IdeateLabs appoints Divya Ajitkumar as business head

MUMBAI: IdeateLabs, one of India’s largest independent full-service digital-first creative agencies has roped in Divya Ajitkumar as Business Head. She will be based out of the Mumbai office and will be reporting to the Director, Vrutika Dawda.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/09/heart.jpg?itok=iTU6F1OU
Future of influencer marketing

Influencer marketing is set to become a $10 billion market by 2020 - with recent reports revealing that 63 per cent of marketers intend to increase their influencer marketing spends this year. It would be correct to say that influencer marketing is here to stay – there’s a phenomenal 1500 per cent...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/07/Rohan_Bopanna-Nikita_Dutta.jpg?itok=Z7NKjbwl
ASICS limited-edition GEL-NIMBUSTM 22, TATA Mumbai Marathon 2020 official Race Day T-Shirt unveiled

MUMBAI: Japan-based sportswear company ASICS and India’s leading sports promoter Procam International today unveiled the limited-edition GEL-NIMBUS™ 22 along with the official ‘Race Day T-Shirt‘ for the 17th edition of Asia’s most prestigious TATA Mumbai Marathon (TMM) 2020. ASICS Brand Athlete...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/07/OneCulture%20Raps.jpg?itok=tKTCyfa8
OneCulture Raps its way to Redefine the Work Culture for Millennials

New Delhi, 6th December 2019: OneCulture, a unified co-working space with various amenities for corporates and professionals, collaborates with the new-age rap artist, Karma. The rapper based in Doon is known to stir a buzz amongst the crowd as he acknowledges societal and social concerns through...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/07/Mondelez_800.jpg?itok=JKzLBf46
Mondelēz International Releases its First-Ever global State of Snacking™ Report Explores the Rise of Snacking in India

INDIA  - Mondelēz International recently announced the launch of its first-ever State of Snacking™ report, a global consumer trends study examining the role snacking plays across the world, including India, in meeting consumers’ evolving needs: busy modern lifestyles, the growing desire for...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/07/adidas_FC.jpg?itok=HR0V1Yom
adidas launches campaign inspired by Real Kashmir FC fans

Inspired by the support that Kashmir Football Club gets from its rivals’ fans, global sportswear giant adidas and Real Kashmir FC together unveiled the new design of the club’s 2019-2020 home jersey. They have dedicating it to fans of the club. The new colourways are an ode to the Unreal Fans of...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/06/oppo.jpg?itok=Ozwhz1eG
OPPO announces extension of its partnership with International Cricket Council till September 2023

MUMBAI: OPPO, a leading global smartphone brand, has announced the extension of its partnership with the International Cricket Council (ICC) for another 4 years, up-till September 2023. Under the partnership, OPPO will continue to remain the official Mobile Handset and Headset partner of ICC and...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/06/lazypay.jpg?itok=E1yvMrJZ
LazyPay launches new campaign #LazyPayHaiTohSortedHai

MUMBAI: LazyPay, PayU India’s consumer lending platform and India’s most popular Pay Later option, today launched its new digital campaign ‘LazyPay Hai Toh Life Sorted Hai’. The campaign, to connect with today’s consumers, takes an unusual route and uses cases to highlight the convenience that...

MAM Media and Advertising Ad Campaigns

Sign up for our Newsletter

subscribe for latest stories