News channels double down on marketing amid revenue challenges

The second quarter has been a mixed bag for India’s news television industry. While some channels faced an average 30-40% drop in operating revenue from July to September compared to the April-June period, others saw substantial growth. 

This decline, seen in many channels, reflects both the post-election cooling-off period and the cyclical nature of news TV revenue in India. For channels that managed to increase their revenue, this uptick is attributed to factors like a rise in digital ad spending as the festive season approached, stronger content strategies, and fresh digital initiatives.

“After elections, news channels usually experience a dip in revenue as advertising demand decreases,” shared an industry insider on the condition of anonymity. “During election seasons, political groups and related entities ramp up media spending to connect with voters. Once elections are over, this spending drops off, which naturally impacts ad revenue.”

QoQ Performance: Election cool-off impact revenues

Network18 recorded a 1.6% QoQ revenue decrease to Rs 445 crore in its news portfolio in the quarter ending 30 September. TV Today Network, which operates major channels like Aaj Tak and India Today, reported a 33% decline in revenue from operations. It clocked in Rs 311.79 crore during Q1 but dropped to Rs 206.77 crore in Q2. Zee Media (ZMCL) recorded a 25% decline in revenue during Q2.

Experts say advertisers may shift focus to holiday or festival-specific campaigns in the July-September period, reducing allocations for news outlets. Viewer engagement may also decrease post-election, as the public interest in political coverage wanes, impacting viewership and, consequently, ad revenue. 

NDTV reported a 18.5% growth in revenue. Their consolidated revenue from operations stood at Rs 93.9 crore during the Q1 which rose up to Rs 111.32 crore during Q2. 

“This impressive performance is driven by NDTV’s enhanced content strategy, an expanding portfolio of intellectual properties (IPs), and strategic digital initiatives,” as per the company’s media release.

YoY revenues: News channels see a marginal dip

In a year-over-year (YoY) analysis of Q2 performance, India's news television channels have generally reported slight declines in revenue. ZMCL’s revenue dropped from Rs 151.59 crore in Q2 of 2023 to Rs 130.70 crore in Q2 of 2024, marking a 13.7% decline. 

NDTV saw its revenue decline slightly from Rs 61.90 crore in Q2 2023 to Rs 59.8 crore in Q2 2024, a 3.4% decrease. 

TV Today Network's revenue saw a 3.3% decrease which was Rs 206.77 crore in Q2 2024 and Rs 213.86 crore during last fiscal’s similar quarter.

Defying the odds, Network18 saw a 6% revenue increase from Rs 420.31 crore in Q2 of last financial year to Rs 445.27 crore in Q2 of FY24.

The news division’s growth was driven by increased digital advertisement revenue, even as industry advertising volumes for the news genre softened by 20 percent from a year earlier, Network18 Media said in a press statement.

Experts suggest that while elections can be pinpointed for QoQ decline, the YoY declines across these major networks indicates news television remains an important medium, even though it faces challenges in sustaining revenue growth. 

An industry expert said, “The YoY revenue decline in Q2 can be attributed to various factors. The overall economic situation, including inflation and financial uncertainties, may cause advertisers to trim budgets.”

The main reason is that many advertisers save their budgets for the Q3 festive season, which includes major events like Diwali, Christmas, and New Year, according to him. This trend typically results in lower ad spend during Q2, as advertisers hold back to make a greater impact during the high-consumption period associated with these celebrations.

Higher marketing and promotional expense

While the revenues have seen a slight dip or flattish growth, the marketing and promotional expenses have seen a high growth when compared on YoY basis.

For Network18, the Marketing, Distribution and Promotional Expense increased by almost 9% from Rs 97.6 crore in Q2 2023 to Rs 106.5 crore in Q2 2024.

Similarly, NDTV spent Rs 335.7 crore in Jul-Sep 2024, which was a whopping 113% more than Rs 157.4 crore in Jul-Sep 2023.

This increase in promotional expenditure suggests a strategic focus on brand visibility and audience acquisition as news networks compete for viewer attention with the digital media. 

Future outlook 

Overall, despite these post-election revenue dips, India’s news television sector remains resilient. For many broadcasters, the challenge now lies in diversifying content and adapting to digital trends to retain engagement and drive ad revenue in a more stable quarter.

Moreover, the industry is seeing a gradual pivot toward digital platforms, with several broadcasters enhancing their online presence to tap into younger audiences and secure additional ad revenues. This shift is likely to be an ongoing strategy as traditional TV players aim to stay relevant in an increasingly digital-first landscape.

Network18 stated in its media release, “As consumers and advertisers increasingly gravitate towards omni-channel experiences across different aspects of their lives, having a deep and integrated presence across both TV and Digital media will enable the merged entity of TV18 and E18 with Network18 to serve them better.” 

“Developing digital platforms like mobile apps and subscription services can open new revenue streams. Premium content, such as exclusive reports and behind-the-scenes footage, can attract loyal subscribers. Moreover, organising events beyond traditional news, like industry awards, expert panels, or lifestyle gatherings, brings in sponsorship and ticket sales,” mentioned the industry source.

During the H1 of the year, Network18’s share price fluctuated around Rs 90.40 in April, hit its highest at Rs 99.92 in August and closed at Rs 81.97 by the end of September. Its lowest price was Rs 75.60 in June, indicating some volatility but with recovery efforts by Q2 end. 

ZMCL opened its new fiscal in April at Rs 11.55 and hit its lowest in May at Rs 10.55. The channel closed its H1 on 30 September at a high of Rs 22.82 with a sudden hike during the last week of September due to increased investor interest.

TV Today opened its FY 24-25 with Rs 219.55, and then hit its lowest in June with Rs 207.25. Its share price touched the skies on 1 August at Rs 287 and closed at Rs 234.05 on the last day of H1, reflecting positive market interest.

NDTV opened its new fiscal with Rs 222.65 and declined to Rs 187.34 by the end of September, touching the peaks in the beginning of June at Rs 263.40. This decline may reflect market reassessment amid broader industry changes.