4 Sep, 2007, 03.19PM IST,REUTERS
Channel boom or turf: 700 TV channels by '09
MUMBAI: More than 100 new TV channels are scheduled for launch in India over the next 12 months, delivering ever smaller audiences to broadcasters and nudging up their cost of distribution and marketing.
With the total number of channels on air set to hit 700 by 2009, broadcasters will be forced to slash advertising rates and spend heavily on improving technology to ensure their channels are carried into homes, or face the prospect of being swallowed up by rivals.
Boost in adspend
India’s economic growth of around 9% a year is forecast to boost advertising spending which makes up 60% of broadcasters’ revenues by a fifth to $4.4 billion (Rs17,600 crore) this year.
“But even that fast pace can’t keep up with the speed at which the pie is getting sliced thinner and thinner,” said Atul Phadnis, chief executive of research firm Media e2e.
“There is also an expansion across other media, so broadcasters will be forced to discount to get advertisers.”
Most channel launches focusing on entertainment
Many of the new channel launches, which start this month, will be in the dominant general entertainment genre, whose Hindi-language soaps and movies corner about 40% of all TV ad revenues.
Leader News Corp’s Star India will face new launches from rival Zee Entertainment Enterprises as well as from New Delhi Television, UTV Software Communications Viacom-18 and INX Media.
“Longer term, we believe the market has the depth of spend, demographics and distribution to accommodate several new TV channels and genres,” said Vivek Couto, executive director of research firm Media Partners Asia in Hong Kong.
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