Sony Entertainment Television (SET) has seen a fall of over 25 per cent in its advertising revenues for the first nine months of the current financial year with sales coming down to Rs 404 crores from Rs 300 crores for the corresponding nine months last year.
For 2000-01, SET, on the back of healthy growth in ad revenues that touched Rs 495 crore for the whole year, recorded a net profit. With falling viewership figures and STAR ruling the roost, this year it's a net loss so far.
According to the industry analysts, the subscription revenues are increasingly seen as the way ahead for channels. In the case of SET, subscription fees are bringing in Rs seven crores a month and the projected revenue for the year is put at Rs 60 crores. In the previous financial year, the subscription income was just Rs 22 crores.
SET's business plan sees subscription revenue growing to become 30 per cent of total income for the group in the next financial year from this year's projection of 20 per cent.
According to the channel sources, the mistake that has cost SET dear was that they encrypted the flagship Sony channel too late.
Advertising revenues have turned flat with STAR hogging, according to industry estimates, 50 per cent or around Rs 900 crores of the advertising pie.
The change in audience tastes ‚ÄĒshying away from SET's old film-and-events driven programming and in favour of weepy 'relationship' soaps ‚ÄĒ has been a major factor in losing precious advertising revenue.
SET spent Rs 60 crores on film-buying last year. Both films and events are not paying anymore for SET and the company has now shelved expensive film and event buying.
Stuart Bowden talks about purchase journey, the revised version of Cannes Lions, Wavemaker India‚Äôs performance and a lot more
Emery says everything that Unilever CMO Keith Weed says has a touch of genius. He also talks about his expectations from Cannes, WPP without Sir Martin Sorrell and his love for Mindshare India.
In an interaction with exchange4media, PC Musthafa, CEO & Co-Founder iD Fresh Food shares how the brand deals with competition and marketing strategies followed by them.
Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer
Prior to Applause, Cherian was the CMO at Smaaash Entertainment for four years
Today's edition of Lokmat and e4m's initiative #No1Dad has media veteran Shashi Sinha and his son Dhruv talking about their fondest family trips
The leading home decor brand plans to set up 100 new stores in Tier 2 and Tier 3 cities