industry & economy _ marketing _ consolidation, digital is at ion
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8/3/2019 Industry & Economy _ Marketing _ Consolidation, Digital is at Ion
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Page 1ss Line : Industry & Economy / Marketing : Consolidation, digitalisation marked the year for broadcasting industry
1/5/2012 5:21:25 AMwww.thehindubusinessline.com/industry-and-economy/marketing/article2752019.ece?css=print
nsolidation, digitalisation marked the year for broadcasting industry
vita Chatterjee
ng 2011, TV networks continued to launch more channelsmbai, Dec. 27 :
gitalisation of cable TV along with alliances and acquisitions among television networks were the major highlightsing 2011 for the media broadcasting industry.
evision networks were consolidated through acquisitions (Walt Disney picked up 100 per cent stake in UTV tware), while alliances formed the backdrop of TV distribution with big networks, like Zee and Star, comingether to distribute combined channel bouquets.
cording to Mr Farokh Balsara, Head, Media and Entertainment, Ernst & Young, Consolidation was the trending 2011, and going forward there will be more pan-Indian networks emerging with about five-six largeworks. Going forward, we may see North India-based networks like Network18 going down south while Sun TV y look at acquisitions up north. There will hardly be any standalone channels left and each will form part of auquet belonging to some big network.
anwhile during 2011, TV networks continued to launch more channels keeping in mind digitalisation in theure. Today the number of TV channels in India has grown to 845, including 430 news and current affairsnnels. Several new channels were launched in 2011 focused on regional and niche genres such as food, lifestyle,hnology and science.
ense competition in the general entertainment and news genres along with low barriers to entry led broadcastersoffer differentiated content in the regional and niche channels businesses.
me of the new channels launched during the year were Mix (the music channel of Multi Screen India), UTV Starzollywood content), Life OK (Star India's second GEC) and Sonic (Viacom18's youth channel).
w regulations
here are a lot of new regulations coming into play with digitalisation which is favourable for television networks,king them launch new channels. New channels are looking at new kinds of revenues and going forward there will50-50 ratio between subscription and advertising revenues. Television, the largest segment of the media industry,l see positive growth in 2012, said Mr Timmy Khandari, Leader, Entertainment and Media Practice, PwC, India.
wever, slowdown concerns did affect advertising revenues for the television industry during the year. Withwing concerns of economic slowdown, the advertisers, mainly in FMCG and telecom, have reduced theirnding on television. As a result, the ad growth rate forecasts have been reduced to 13-15 per cent in 2011 insteadaround 20-25 per cent forecasted at the beginning of 2011. Ad revenue growth rate in the second half ismated to slow down in the range of 8-10 per cent. Inventory utilisation levels for Hindi and regional GECs haven at 75-80 per cent, while these are around 60 per cent for other genres. However, the leading channels in the
pective genres are likely to benefit as advertisers play safe bets with lower budgets, claims a report by Ernst &ung.
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t broadcasters will not depend on advertising revenues alone to boost their bottom lines. Subscription revues willon the rise as digitalisation will bring about more transparency in viewership among channels. Revenues will bescription-driven and broadcasters will have more stable revenues streams and not be dependent on advertisingne, added Mr Balsara.
wever, the biggest bonanza for the media industry was the Bill to digitalise cable TV that was passed in Lok bha towards the end of 2011. Clearly the landscape will change now for both broadcasters and distributors.ere will be transparency with respect to the number of subscribers (which is currently not declared correctly)ding to greater subscription revenues for broadcasters and distributors like the MSO (multi-service operators),erved Mr Jehil Thakkar, Head, Media and Entertainment, KPMG.
ywords: broadcasting industry , year ender ,
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me on!
B: Future-ready @ 10
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lice of India's future at marked down price
ere is hope for 2012
11, a year to cherish
esting in turbulent times
T testing psychological support
mpanies
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ud computing, social media will provide industries with new avenues: Gartner
pee fall may help outsourcing companies in short term
ngalore-centric attitude on IT investment comes in for criticism
S campus coming up at Kolkata
et on computer communication
hoo close to naming new CEO
ta management software revenue may rise by 21% this year
nking
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eral insurers' rejected more claims in 2010-11
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nChart sees 25-30% growth in pvt banking in 2012
rintable version | Jan 5, 2012 5:20:05 AM | http://www .thehindubusinessline.com/industry-and-economy/marketing/article2752019.ece The HinduBusiness Line