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Two days of ad blackout cost b'casters around Rs 60 cr

Two days of ad blackout cost b'casters around Rs 60 cr

Author | Abid Hasan | Monday, May 06,2013 7:59 PM

Two days of ad blackout cost b'casters around Rs 60 cr

The diktat of Indian Broadcasting Foundation (IBF) asking broadcasters not to carry ads associated with gross billing and the consequent two days of ad blackout has led to sizeable losses in ad revenues. As per an estimate, broadcasters have lost 90 per cent of their ad revenues per day of the ad blackout.

With the ads back on air, the industry is now taking stock of the losses faced and it is found that the two days of ad blackout have cost the industry around Rs 60 crore, and this includes GECs, news channels, regional channels, movie channels and others.

The Pitch- Madison Media Advertising Outlook 2013, released earlier thos year, revealed that TV’s share in the ad pie in 2013 is expected to erode further by 0.5 percentage points from the current 40 per cent and is likely to bring in ad revenues worth Rs 12,166 crore in 2013.

An estimated view
exchange4media has attempted to calculate an estimated view of revenues that channels lost in two days of the ad blackout

General Entertainment Channels: As per estimates, a GEC features ads worth Rs 3,000 crore-Rs 3,500 crore in a calendar year. If 75 per cent comes from regular advertising, then the average loss would be around Rs 9.5 crore per day, which makes it Rs 19 crore-Rs 20 crore.

The data comprises of all the GECs, which has a 30-35 per cent share of advertising in the industry.

News Channels: On an average, a news channel carries ads worth around Rs 1,300 crore in a calendar year, with a 7-8 per cent share of the advertising. If 75 per cent of this comes from regular advertising, then the losses sum up to about Rs 7-8 crore.

The estimated calculation considers both English and Hindi news channels.

On condition of anonymity, one of the major broadcasters admitted, “The industry has lost Rs 60 crore in the two days of ad blackout. GECs and movie channels have lost the maximum amount of money, followed by regional channels, news channels and other channels.”

As per an estimate, Hindi and English movie channels lost Rs 10-12 crore, while regional channels too lost a similar amount in ad revenues.

Meanwhile, another broadcaster said, “I don’t think we can compensate the loss of the two days, but maybe a few broadcasters can as the deals vary with channels and brands.”

Pradeep Iyengar, President, EMM India, however, felt that the ad revenue loss of Rs 60 crore can be compensated over a period of time.

A KPMG report also gives a clear picture of the mammoth size of television projections and highlighted, ‘Television continues to be the dominant segment’.

Source: KPMG in India analysis and industry discussions

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