MAM
TV commercials dying a natural death in Germany: Mercer study
BONN: Television commercials will soon be a thing of the past and are going the way of dinosaurs, according to a new study in Germany. Mercer Management Consulting Agency has urged TV network executives to start planning for the “post-commercial age” of broadcasting.
The study adds that the new creeping revolution will comprise of commercial-free premium subscription channels, pay-per-view events, tele-shopping and interactive services. Networks with more innovative “viewer-interactive” programming will be better placed in the near future.
The alarming study asserts that declining commercial revenues in Europe can only partially be blamed on the continent’s sluggish economy. The study adds that the digital revolution will pave the way for a whole new series of home equipment which will enable viewers to avoid ever having to see another commercial again. Networks which persist in airing commercials will be airing them to nobody — a fact which will cause advertisers to turn to other media.
The study also predicts that commercial revenues will likely be back up to levels last seen in 2001 by the year 2006. But, by that time, advertising dollars will be shifting away from the traditional TV commercial spot, says the Mercer study.
The study’s findings are pertinent in Germany, where a veritable broadcast explosion has taken place – similar to the one which happened in India a decade back.
Two decades ago, the average west German household received just three channels — all three of them fee-supported public broadcasters. East Germany had two state-operated TV channels and no commercials.
The public channels were restricted to 20 minutes of pre-primetime commercial advertising on weekdays. No advertising was permitted on Sundays or holidays.
But now the media revolution has ensured that the average German household has access to scores of channels, most of them commercial networks free to air advertising 24 hours a day, seven days a week. More than 20 national commercial networks alone at last count are available via rooftop antenna, cable and satellite dish throughout the land. This scenario has led to intense competition for every single dollar spent on advertising.
German national TV advertising revenues peaked in 2001 at US$18 billion, and have been edging downward every year since then, down US$3 billion so far. Mercer’s analysts say that, of the US$3 billion that have vanished from the TV advertising market in the past three years, two-thirds of that sum found its way into other advertising avenues. Only a billion was actually due to the economic downturn.
The Mercer study also says that a whopping 82 per cent of viewers look forward to the day when they can own a DVD recorder which will allow them to “skip over” commercial breaks at the press of a button. And 57 per cent would even be willing to subscribe to a service which would enable them to black out or skip over commercial blocks.
“Viewers want comfort, control and individualized programming,” says the study which warns, “and commercial networks will either meet those wishes or else they will go under.”
Are the Indian broadcasters listening?
Brands
Trent posts Rs 19,701 crore FY26 revenue, profit rises to Rs 1,968 crore
Q4 profit at Rs 455 crore; margins improve, net worth climbs to Rs 7,703 crore
MUMBAI: Retail therapy seems to be working for Trent Limited as much as for its shoppers. The Tata Group retail arm reported a steady performance for FY26, with revenue from operations rising to Rs 19,701.41 crore, up from Rs 16,668.11 crore in FY25. Total income for the year stood at Rs 20,075.87 crore, reflecting continued momentum across its retail formats.
Profit before tax came in at Rs 2,511.54 crore for the year, compared to Rs 2,076.62 crore a year earlier. After accounting for taxes of Rs 543.72 crore, net profit rose to Rs 1,967.82 crore, marking a clear improvement from Rs 1,584.84 crore in FY25.
For the March quarter, the company reported revenue of Rs 4,936.64 crore and total income of Rs 4,997.71 crore. Profit before tax stood at Rs 576.46 crore, while net profit came in at Rs 454.75 crore, up from Rs 349.92 crore in the same quarter last year.
On the cost front, total expenses for FY26 rose to Rs 17,538.54 crore, driven by higher stock purchases of Rs 11,170.44 crore and increased occupancy costs at Rs 1,652.69 crore. Employee benefit expenses also edged up to Rs 1,222.04 crore, reflecting continued expansion.
Operationally, the company maintained stable efficiency metrics. Operating margin improved to 11.88 per cent from 11.29 per cent, while net profit margin rose to 9.99 per cent from 9.51 per cent. The interest service coverage ratio stood strong at 16.76, indicating comfortable debt servicing capacity.
Trent’s balance sheet also strengthened during the year. Net worth increased to Rs 7,702.80 crore from Rs 5,914.40 crore, while total assets expanded to Rs 12,225.71 crore. The debt-to-equity ratio improved to 0.33 from 0.38, signalling a more balanced capital structure.
Cash flow from operations rose to Rs 2,630.19 crore, compared to Rs 1,668.26 crore in the previous year, even as the company continued to invest in expansion, with capital expenditure and investments weighing on investing cash flows.
With consistent growth across revenue, profitability, and margins, Trent’s FY26 performance suggests a retailer scaling steadily ringing up gains not just at the checkout, but across the balance sheet.
