TV segment ad revenue decline to be in range of 20-25% at end of FY21, report estimates

ZeeL and TV Today to outperform others

KOLKATA: The broadcasters have had rockier than the usual first half of the year due to ongoing crisis as the advertising spends fell drastically. While the market is slowly recovering, ad decline could be in the range of 20-25 per cent at the end of FY21. The report published by Elara Capital also predicts that Zee Entertainment Enterprises Limited (Zeel) and TV Today Network (TV Today) will outperform other broadcasters in terms of ad revenue.

Zeel’s growth will be driven by Zee Anmol moving back towards FTA and strong gains in the south based regional genre, as per the report. It further adds that TV Today will have an advantage of the shift in the news genre due to sharp viewership gains compared to other genres, which has tapered off post the unlock. However, it still remains high compared to pre-Covid levels. Aaj Tak being the leader in the news genre in the first half of FY21, the traction for ad spends in the festive season is expected to remain healthy along with some benefits during Bihar elections, thanks to strong market share for election poll viewership.

It re-emphasises that the re-conversion of channels like Zee Anmol, STAR Utsav from paid to FTA will continue to benefit the listed broadcasters like Zeel positively as they have been gaining significant market share within the GEC genre attracting ad revenues. Hence, the report predicts the ad revenues from these channels to move back to pre-NTO levels, which had plummeted after their conversion to paid channels post NTO 1.0 implementation.

Genre-wise, Hindi and regional GEC will outperform TV ad spends, while other genres like English, music, infotainment etc. will underperform given the continued weakness witnessed in the English entertainment genre and struggle of music, infotainment in attracting ad spends.

The report says that the pricing of GEC genre has seen a sharp recovery and down by merely 25-30 per cent narrowing the gap from 60-65 per cent in April-May. However further recovery for pricing in the GEC genre is expected only after the Indian Premier League (IPL) i.e. November onwards, as the latter has extracted a huge chunk of ad budgets. It also says that the festive uptick coupled with the resumption in GEC ad spends post the IPL season to bode well for the broadcasters, during the first half of the third quarter leading to 15 per cent growth year-on-year.

Nonetheless, the report mentions that broadcasters would not be able to close the quarter with the festive gains due to some drop towards December. Hence, they will end overall Q3 at a 7-8 per cent growth excluding IPL. During the fourth quarter, broadcasters are expected to report a growth of 10-12 per cent given the low base of FY20 impacted by Covid2019. Based on these expectations, FY21E ad decline translates to average 17- 19 per cent (ex-IPL).

Latest Reads
Sunil Doshi & Rainshine Entertainment partner to launch Manzar Studios

MUMBAI: Media veteran and creative entrepreneur Sunil Doshi has joined forces with Rainshine Entertainment to create Manzar Studios, which aims to bring global stories to Indian audiences along with creating content locally. The Indian content ecosystem is going through rapid changes - be it...

Television Production House Post Production
#IndiaTaiyarHai to welcome England cricket team, says Star Sports

NEW DELHI: After almost a year, cricket finally returns to Indian soil as Team India faces world champions England in a two-month adventure that gets underway from 5 February 2021. As India opens its doors to sporting events, Star Sports has launched the campaign #IndiaTaiyarHai to the excitement...

Television TV Channels Sports
National Geographic India ropes in LIC, Accenture & KTM Husqvarna Dominar as Spotlight sponsors

MUMBAI: National Geographic India has signed three sponsors for its brand new offering – Spotlight which starts on 23 January 2021. The brand will premiere best in class, much acclaimed films every Saturday. LIC, Accenture and KTM Husqvarna Dominar have come on board as powered by sponsors. 

Television TV Channels Factual
Zee Tamil all set for Mahasangamam festival till March 2021

MUMBAI: Zee Tamil is starting off the new year with fresh and innovative content strategies across all its segments, with a number of surprises up its sleeve. The channel has planned Mahasangamam episodes across various shows, which has gained a lot of popularity and traction among audiences.

Television TV Channels Regional
Ticket To Hollywood brings ‘Jumanji: The Next Level’ in the language of your choice

MUMBAI: In one of the biggest festive offerings on television for 2020, Zee’s newest pan-network property, ‘Ticket To Hollywood’ enthralled a whopping 29 million viewers with  the premiere of Vin Diesel’s Bloodshot across 12 channels and in ten languages. This 2021, Zee truly takes the Hollywood...

Television TV Channels English Entertainment
Warner Music signs distribution deal with Sky Digital India

MUMBAI: Warner Music India has struck an exclusive distribution agreement with Punjabi music content consortium and aggregator Sky Digital India.  Distribution of Sky Digital’s repertoire outside India will be handled by ADA, Warner’s independent artist and label services division, while Warner...

Television TV Channels Music and Youth
Zee TV introduces new show Teri Meri Ikk Jindri

MUMBAI: Zee TV’s newest primetime show is a love story based in Amritsar - Teri Meri Ikk Jindri. It follows the lives of Mahi and Jogi, two seemingly opposite personalities whose different outlooks towards life and happiness do not come in the way of their love. Set to premiere on 27 January 2021,...

Television TV Channels GECs
Zee 24 Ghanta gears up for West Bengal polls coverage

NEW DELHI: Zee 24 Ghanta has announced a comprehensive programming line-up to bring “encyclopaedic coverage” of the West Bengal Assembly elections to its viewers. The robust program schedule comprises of 13 new shows spanning over 2,700 hours.  Indian Institute of Hotel Management, Macho, Asian...

Television TV Channels News Broadcasting

Sign up for our Newsletter

subscribe for latest stories

* indicates required