Competition in the industry is rising, resulting in major structural changes on all fronts. None of the broadcasters want to lose in this battle where content with quality distribution will decide their fate.
At
present over 82 million households that comprise almost
40% of India's population, have access to television.
This particular segment of the Indian media industry
is projected to grow appreciably and is emerging as
the largest market after US and China. With a total
revenue of Rs. 111 bn, television at present accounts
for over 60% of the entertainment industry's revenues.
According to FICCI's report, the sector is expected
to continue its rapid growth at a CAGR of 21% till 2007.
In last couple of years, various broadcasters have proliferated
and now because of competition almost all smaller players
are becoming part of the stronger bouquet, so the segment
is witnessing consolidation. Competition is soaring
in the sector, forcing major changes in the distribution
and revenue models of the players in the industry.
Indian
television media industry comprises of three major segments:
Television content production, television broadcasting
and television distribution. A TV broadcaster executes
the responsibility of content aggregator, airtime marketer
and distributor of the programs straight to viewer or
through cable operators. For broadcasters, top programming
content, large-scale penetration in viewership, good
marketing capability to sell airtime spots to ad agencies
or direct advertisers, programming syndication capabilities
etc., will be the major factors for success in near
future. Alka Saxena, Editor and Head of Programming,
Zee News, says, "The revenue models in the television
industry have been evolving on similar lines to the
international markets, where 80 to 90% of the revenue
is subscription based. Post Conditional Access System
(CAS) the realization of subscription revenue would
go up, as CAS would pave the way for 100% declarations.
Also, the channels, which rely mainly on airtime revenue
models will have an opportunity to gain from such a
100% declared subscription base." |
