Home >> Media-TV >> Article

Leading entertainment channels see robust revenue growth in Q1

19-August-2013
Font Size   16
Leading entertainment channels see robust revenue growth in Q1

It is understood that ad revenues for most broadcasters have increased in the first quarter of FY 2014. We spoke to experts to decode the reasons for this hike...

“We had a great quarter with IPL, with revenues growing over 30 per cent. Most of our channels in the network have recorded growth of over 25 per cent in the first quarter,” said Rohit Gupta, President Sales, MSM Networks.

According to some experts, the relative share of channels has gone up post digitisation and helped broadcasters command more money from advertisers. Also, channels are preparing for the 10+2 regulation, which is likely to be implemented post October. By hiking ad rates in a phased manner, rather than suddenly, broadcasters are paying extra attention to safeguard their revenue prospects.

“Our ad growth rate has been 18.5 per cent YoY for the first quarter and we see the figure likely to increase substantially in the coming months. Sectors such as FMCG, telecom and e-commerce have increased their ad spend, and auto is likely to follow. This is one of the natural reasons for the ad revenue increase. However, spends from sector such as BFSI has gone down,” said Ashish Sehgal, Chief Sales Officer, ZEE.

There is also a line of thought that the broadcasting industry is going through varied changes and advertisers are experimenting with probabilities of ad placement in various media. So, they are meticulously planning their budgets to be prepared for the scenario post 10+2 ad cap.

A Business Head of a leading GEC, on condition of anonymity, said, “Our ad revenues have gained almost by 13-15 per cent in the first quarter. The trend is likely to grow and revenue is likely to come from the consumer durables segment.”

Unlike SUN Network, which recently hiked its ad rates by more than 100 per cent for prime time slots, national channels have taken a cautious approach towards ad rate increase.
 
Balance sheet representing earnings of the first quarter of Network18 and ZEE have shown surging ad revenues, coupled with increased subscription revenue. Critics have often argued that 10+2 and digitisation will ensure better revenue prospects for broadcasters, and with digitisation the channels are likely to derive more benefit out of the same proposition and content offering.

“Most broadcasters have increased their ad rates by 10-15 per cent and this is the reason for increase in revenues. Numbers vary from region to region. All of us are waiting for 10+2 to reach a credible conclusion about numbers. If an advertiser was paying Rs 100 for a spot, he is now paying Rs 115 for the same spot, but that necessarily cannot be called increase in ad spend,” explained Anil Sathiraju, AVP and Head South, Mudra Max.

Since most broadcasting companies are not public and most channels we spoke to refused to reveal the actual numbers, it is difficult to arrive at a figure for the increase in ad revenues. However, industry sources reveal that an increase is inevitable in the current scenario, but numbers may vary from channel to channel. While some may see a considerable increase, others might see only a marginal rise. 

Tags ZEE MSM Ashish Sehgal Rohit Gupta Ad Revenue Q1 2013 Abhinav Trivedi

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Open Magazine has terminated the services of Karl Mistry, General Manager (West) and issued a show-cause notice to associate publisher Pankaj Jayaswal. Both of them featured in the Cobrapost sting.

The ‘Effortless Style Gets Sportier!’ campaign focusses on the evolution of the existing communication of the product- ‘Effortlessly Stylish’ and fortifies it with the addition of a new flavor – ‘spor...

For the launch of its latest range of Beard Care essentials, Bombay Shaving Company has collaborated with Jam8 studio, a brainchild of esteemed music producer, Pritam Chakraborty.