DD, AIR 8M-FY21 revenue takes a hit due to pandemic

Based on the information provided by I&B minister Prakash Javadekar in the Lok Sabha, the collective revenue of DD and AIR stood at Rs 266.27 crore for 8M-FY21

e4m by exchange4media Staff
Updated: Feb 23, 2021 8:47 AM
prasar

The Covid-induced pandemic and the resultant cut back in ad spending by brands has had a drastic impact on public broadcaster Doordarshan and All India Radio's (AIR) revenue for the ongoing fiscal. The pubcaster is likely to end the fiscal with a huge reduction in revenue, if one goes by the quoted figure till November 2020.

Based on the information provided by I&B minister Prakash Javadekar in the Lok Sabha, Doordarshan's revenue from advertising and other programme activities stood at Rs 157.53 crore in FY21 till November 2020 while AIR recorded revenue of Rs 108.74 crore for the same period. Collectively, the revenue of DD and AIR stood at Rs 266.27 crore for 8M-FY21.

DD and AIR reported collective revenue of Rs 654 crore and Rs 1014.5 crore in FY20 and FY19 respectively. DD and AIR are the TV broadcasting and FM radio arms of Prasar Bharati. The revenue earned by the two entities has been on a continuous decline year-on-year due to stiff competition from private TV and radio channels.

In FY20, DD had posted revenue of Rs 348.83 crore, which was a reduction of 36.98% over FY19. AIR had earned Rs 305.23 crore with its revenue dropping 33.78% over the previous fiscal. In FY19, DD and AIR's revenue stood at Rs 553.55 crore and Rs 460.95 crore respectively.

On an individual basis, Doordarshan has reported surplus revenue in FY20, FY19, and FY18. In FY20, Doordarshan recorded a surplus of Rs 169.71 crore on a revenue of Rs 865.89 crore and an expenditure of Rs 696.18 crore. Likewise, the surplus stood at Rs 249.44 crore and Rs 230.47 crore in FY19 and FY18 respectively.

The revenue stood at Rs 966.86 crore in FY19 and Rs 885.40 crore in FY18. The expenditure was reported at Rs 654.93 crore and Rs 717.42 crore in FY18 and FY19 respectively.

AIR reported a deficit of Rs 234.65 crore, Rs 135.43 crore, and Rs 148.79 crore in FY20, FY19, and FY18 respectively. The revenue stood at Rs 387.21 crore in FY20, Rs 548.98 crore in FY19, and Rs 551.63 crore in FY18. The operating expenditure for FY18, FY19, and FY20 stood at Rs 700.42 crore, Rs 684.41 crore, and Rs 621.86 crore respectively.

"Prasar Bharati is having All India Radio and Doordarshan as its constituents and is discharging its function as a public service broadcaster as per the objectives laid down in the Prasar Bharati Act, 1990. Some operational expenses of All India Radio and Doordarshan are being met from the Internal Extra Budgetary Resources resulting from revenue generation activities," Javadekar said.

Javadekar also stated that the pubcaster doesn't earn any revenue from gutkha and cigarette ads as the pubcaster doesn't carry any ads related to gutkha and cigarettes as per its laid-down commercial code. This statement was made in response to a separate question.

In response to another question, Javadekar said that the extension of the Central Sector Scheme Broadcasting Infrastructure and Network Development (BIND) at a cost of Rs. 1054.52 crores for 3 years (2017- 2020) inter-alia has a component for modernisation and capital infrastructure in All India Radio and Doordarshan. This scheme was further extended for another year up to 31.03.2021.

"Government of India provides Grants in Aid to Prasar Bharati under the Central Sector Scheme (CSS) “Broadcasting Infrastructure and Network Development (BIND)” for building capital infrastructure and also for content besides providing Grant-in-Aid for salaries," he stated.

He also said that the modernisation of infrastructure of AIR and Doordarshan is a continuous process and schemes in this regard are formulated and implemented from time to time to keep pace with technological upgradations, and other challenges.

Prasar Bharati, he said, also meets its operational expenditure through its Internal and Extra Budgetary Resources (IEBR) raised from revenue generation activities. In FY20, the surplus stood at Rs 46.49 crore while the revenue and expenditure were Rs 1364.53 crore and Rs 1318.04 crore respectively.

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