Tag: FTA

Reliance Big DTH to take FTA route under new management?

MUMBAI: Is another free-to-air (FTA) DTH operator pawing to take off in India? If the statements made by the Pantel Technologies (the company that took over the ailing Reliance Big DTH) management in media releases are to be believed, then the answer is in the affirmative.

Yesterday, Sri Adhikari Brothers Television Network and Pantel Technologies announced through a release on the Bombay Stock Exchange that the companies had arrived at an understanding to jointly create a bouquet of over 20 FTA channels comprising diverse genres, such as entertainment, kids, infotainment, mythological, and movies.

The release further stated that “the varied product offering will strengthen the business of Reliance Big TV (RBTV) and will give a leg up to the largest FTA network in India. FTA channels have shown an upsurge with all the leading broadcasters showing a keen interest in the FTA product offering.”

Pantel Technologies CMD Vijendra Singh was quoted in the release as saying: “Our main aim is to develop the entertainment appetite of the rural market and create an alternative India. With our coalition with Sab Group, we will bring together our technological proficiency and their content expertise thereby enabling us to provide good content for rural India, which is what we are committed to for their upliftment.”

Pantel had acquired the entire shareholding of RBTV with the business on an “as-is, where-is” basis. The transaction ensured that all 1.2 million customers of Big TV would continue to enjoy uninterrupted services, the company said in a statement. The deal also ensured continuity of employment for about 500 employees of RBTV.

Attempts to connect with SAB group managing director Markand Adhikari and Singh were not successful.

However, if Indiantelevision.com’s interpretation of the announcement today is correct, then it should prove encouraging for private broadcasters. The Prasar Bharti-owned FTA service FreeDish has been an unmitigated success but its future looks in doubt with conflicting reports appearing about whether the powers that be want to continue providing the slots to private players. According to sources in the public sector Prasar Bharti, minister of information and broadcasting Smriti Irani has put a full stop to the e-auction process as the government wants to populate the FreeDish platform with its own channels.

Also Read: Veecon Media acquires Reliance Big TV

Sab Group, Pantel Tech join hands to launch over 20 FTA channels

Reliance launches JioTV for web

December 20, 2017
MIB, Prasar Bharati mulling B-school help on DD & FreeDish biz models

MUMBAI: The government is exploring seeking help of an Indian Institute of Management to suggest ways on revitalising Doordarshan, including studying the existing business model of national broadcaster’s FTA DTH service DD FreeDish and whether further suggested improvements could be implemented.

According to government sources, the move is part of ministry of information and broadcasting (MIB)’s efforts to shore up the bottomlines of Prasar Bharati, an autonomous body that manages India’s two pubcasters, Doordarshan and All India Radio.

A B-school may be roped in to study the business model of DD FreeDish — that at present auctions slots on the platform to private broadcasters too — and explore whether if private sector TV channels are bumped off DD can generate revenue on the strength of its own channels, many of them also distributed terrestrially.

As per some media reports, DD not only put on hold the latest round of e-auctions for slots on FreeDish in August 2017 on an advisory from MIB, but has also stopped renewing agreements of TV channels, which are presently on the DTH platform but are faced with a blackout once their annual contract comes to an end.

A top Prasar Bharati official is said to have made a presentation to MIB minister Smriti Irani recently on how the DD set-up could be revitalised, including rejigging the business model for DD FreeDish, amongst other things.

Though most big private sector broadcasters like Star India, Zee, Viacom18 and Sony, all having their channels on FreeDish, have not yet officially reacted to DD FreeDish keeping in abeyance the e-auctions for administrative reasons, smaller TV channels may feel the pinch. One of them, Cinema 24×7, has moved the telecoms and broadcast disputes tribunal TDSAT seeking interim relief as its contract expired in September 2017 and, according to its petition, it failed to get clarifications from DD on future auctions.

The magic of DD’s FTA platform was discovered by TV channels a couple of years back with the battle for a slot intensifying in the last one year or so, egged on by BARC India starting to measure non-urban and rural audience. On DD FreeDish, it’s not pubcaster’s channels that top the list in terms of audience ratings, but mostly those belonging to the private broadcasters.

A TV executive, on the condition of anonymity, explained that while Doordarshan, as a statutory body, survives on annual grants from the government, in 2016-17, DD FreeDish recorded revenues of about Rs 2641.7 million, a 47 per cent increase from a year ago. Hence efforts to revamp the current business model for DD FreeDish, having almost 52 per cent rural viewership that attracts private TV channels willing to pay hefty carriage fee, could prove detrimental for the pubcaster’s revenue, the exec added.

Former MIB minister Manish Tiwari, while criticising DD’s reported moves to change the existing revenue models for DD FreeDish by putting on hold a transparent mechanism like e-auctions, told Indiantelevision.com, “DD FreeDish benefits from the presence of private TV channels on its platforms as it provides diversity of content to non-paying rural audiences.”

ALSO READ ;

WOW Cinema petitions TDSAT on delayed auctions for DD FreeDish slots

Govt to help revitalise DD under ‘autonomous Prasar’, dubs censors as ‘facilitators’ within law

October 12, 2017
Star Bharat debut ratings and reach impressive

MUMBAI: Well, Star India seems to be on a roll these days. No sooner had the euphoria dimmed after it outwitted others with a masterstroke $ 2.56 billion global bid for India’s premier cricket league IPL, it’s now time to savour the success of  rebranded-cum-rechristened channel Star Bharat, which is rubbing shoulders with category leaders in terms of ratings and reach — and that too within a short period.

On 28 August 2017, Life OK was revamped with a new name, logo, tag line and, of course, a lineup of fresh original shows. It debuted on free-to-air DTH platform DD FreeDish with its parent having successfully bid for a place after coughing up a shade over Rs. 160 million. That Star Bharat continues to be available on other cable and DTH platforms could be another masterstroke.

Now sample the data collated by audience measurement organization BARC India. In week 36, Star Bharat took the second position in the GEC category garnering 669588 (000s) Impressions and 378234 (000s) Impressions, respectively, in the urban+rural and rural markets. The two-week old channel’s reach too had gone up by 15 per cent from week 35-36, while the ratings or impressions grew by 29 per cent.

In contrast, in week 34 of BARC India, Life OK (the earlier avatar of Star Bharat) was placed at 10th spot in the urban+rural market with 328571 (000s) Impressions, while  in the urban market it did slightly better at sixth position with 213162 (000s) Impressions.

Cometh week 35 of BARC India. After an overhaul in name and programming, Star Bharat in its first week of operation climbed to the fifth spot in urban+rural market with 519743 (000s) Impressions. It also made an entry in the rural market at the fourth spot with 278785 (000s) Impressions and in urban market occupied the sixth position with 240958 (000s) Impressions.

An independent observer of the TV industry, having seen many a channel strategy gone awry, admitted that Star’s planning and research regarding distribution and programming does seem to be working. Primarily the FTA platform approach, though audience data provided to indiantelevison.com regarding Star Bharat doesn’t specify whether the viewership and reach is coming from DD FreeDish or elsewhere.

TG: HSM, 2+
Top 10 Channels pre re-branding and post:

Top 10 Hindi GECs in week 36:

Here the equation becomes interesting. According to information collated by Indiantelevision.com, a 10-second ad rate for Star Bharat is presently estimated at around Rs 10,000, whereas Life OK commanded a higher price in the range of Rs 30,000-40000/10 seconds.According to the BARC India data, the four-week average for Life Ok (Week 31-34) was 345621 (‘000s) Impressions.However, the average for weeks 35-36 shows a growth of 72 per cent in the viewership of Star Bharat with figures of 594666 (‘000s) Impressions.

“The (sponsorship) rates will pick up once the ratings come. At present, it is just two weeks data. If there is stability in the ratings over the future weeks, there is a possibility that Star Bharat may increase its ad rates. Right now the marketing buzz and hype is pushing the channel, but after a few weeks it will not only stop, but may even out too,” a senior media planner told Indiantelevision.com, adding that the channel, as also the advertising world, will have to wait for at least “four to six weeks” to fairly evaluate the viewership data.
Old shows  such as ‘May I come in Madam’, `Sher-E-Punjab Ranjeet Singh’, ‘Ghulam’ and `Chandrakanta’ have been taken off the air by the channel management of Life OK/Star Bharat, though crime series ‘Savdhaan India’ continues on Star Bharat. The channel in its new avatar has unveiled a content line up that is aimed at living up to the brand’s philosophy of ‘Bhula ke darr, kuch alag kar’ (forget the fear of the unknown and do something different).

So, Star Bharat now flaunts shows like `Om Shanti Om’, `Kya Haal Mr. Panchaal’, `Nimki Muhkiya’, `Saam Daam Dand Bhed’ and `Ayushman Bhav’.

Reach ‘000s for week 35 and 36

Star has three other channels on the DD FreeDish platform including Star Utsav, Star Utsav Movies and Star Sports First. The last one, which debuted earlier this year, again is a new FTA offering of sorts that has been riding the kabaddi league wave.Indiantelevision.com tried to reach out to Star India for its comments, but could not elicit a response till the time of writing this report. However, if we get some comments on Star Bharat from the channel owner, it’d be updated.

The big question is: will this rebranding and repositioning strategy work for Star Bharat? To use a cliché, only time will tell… oops, sorry, BARC India will tell.

ALSO READ :

Life OK rebranded as Star Bharat may start from 15 Aug

Star Bharat to be available on DD FreeDish as b’caster’s fourth FTA offering

TDSAT ‘no’ to stay Star Bharat launch, DPO payments subject to adjudication

September 15, 2017
Zee’s communication head Usha Thomas quits

MUMBAI: After a seven year term, Zee’s Hindi channels head of communication Usha Rachael Thomas has called it a day at the network. .

A source close to the development informed Indiantelevision.com that Thomas put down her papers on 1 September.

Thomas heads communication for Zee’s Hindi GEC, cinema, FTA and premium clusters including Zee TV, Zee Cinema SD & HD, &pictures SD and HD, Zee Classic, Zee Anmol Cinema, Zee Action, Zee Anmol and Zindagi.

Usha joined Zee in 2010. Prior to Zee, she worked as a consultant at CMCG India Pvt ltd. Thomas also headed public relations for Star Plus, Star Pravah and Star Jalsha prior to that.

Before taking the plunge into public relation, Usha was a journalist and worked with media organisations like HT cafe, DNA After Hrs and Indiantelevision.com.

Thomas also initiated and executed #Zeeforall and made Zee first broadcaster to show content for the visually impaired and hearing viewers. The movie ‘Dangal’ was premiered with subtitles for those who cannot hear and audio description for those who cannot see on the Independence Day, 2017.

September 1, 2017

Guest Column: 5 Trends lending the Power to Believe in Indian TV industry

The four pillars influencing the M&E sector are: Infrastructure, Government policies, Devices and Digital Technologies. Growing consumer demand is inviting policy support driving innovation and resulting in increasing investments in the sector.

There are 5 identifiable trends which lend television industry the power to dream and the analysts the power to believe. These are:
1. Positive Government Directives
2. Surge in Digital consumption
3. Consolidation the new buzzword
4. Rural India beckons
5. Data undergirds everything

1. Positive Government Directives
The M&E industry is expected to leap forward after a slow 2016. 2016 experienced two large government directives which affected the TV industry in negative ways for the short term.

Demonetisation came as a bolt from the blue and shaved off around 2% of ad revenues for the TV industry.

GST as another one to rationalise taxation across the M&E industry. While challenges abound initially, overall M&E industry is however a beneficiary for two reasons:
• Availability of input credits across the board and inclusion of entertainment tax within the ambit of GST are both positive developments.
• Formalisation of economy and widening of tax base will result in overall positive impact on GDP and thereby resultant positive impact on ad spends.

Both Demonetisation and GST will however give a further boost to GDP in the long run. Over and above these, Cable digitisation is already creating a paradigm shift as a game changer with ARPU on an uptrend post digitisation. Even as it is delayed, the same is expected to be completed in 2017.

2. Surge in Digital Consumption
The surge in digital consumption is compelling existing players to take a hard look at their business models. OTT VOD is emerging as a parallel platform along with TV broadcast. Entry of Netflix, Amazon Prime as global leaders; VOOT, OZEE, Hotstar and Sony Liv as broadcast network backed platforms; and Jio Apps and Airtel Wynk as telecom companies backed platforms joining the game with syndicated content offerings.

Development of a sustainable digital ecosystem will be required in the long run to address credible measurement and limited monetisation models.

3. Consolidation the new buzzword
Consolidation is gaining momentum across the value chain. Even as there have been less number of transactions, the good news is that they are of higher value. The three biggest ones are Dish TV and Videocon merger, Ten Sports acquisition by Sony and Reliance ADAG TV broadcast business takeover by Zee.

4. Rural India beckons
Post commencement of rural measurement by BARC, the big story has bene that of the high levels of TV viewing habits of rural India. This has resulted in higher advertising spending in rural HSMs, introduction of new FTA channels and realignment of content focus for mass tastes.

5. Data undergirds everything
Along with the data dividends of digital becoming visible, BARC viewership data has led to consumer analytics becoming indispensable thereby leading to changes in content, distribution and ad strategies.

Conclusion
The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues. The Indian Media & Entertainment industry is on the ball with Television leading the charge.

(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

August 29, 2017

Guest Column: 3 drivers lending power to create impact in Indian TV industry

The Indian Media & Entertainment industry is categorised across nine segments of which Television by far is the largest and is expected to be the largest in the next couple of years.

India is the second largest Television market in the world characterised by rising number of subscribers.

Three top long term growth catalysts that are acting as the biggest drivers for the Television industry are:

1.   Growing Rural Demand
2.   Increasing FTA channels, and
3.   Deeper Audience Measurement

Growing Rural Demand

Digitisation which is expected to be completed in 2017 is leading to higher digital access and consumption. High data consumption has already been experienced and there are encouraging trends with rising internet and broadband penetration, declining data charges, proliferation of internet enabled mobile phone, government and private initiatives around wifi and greater emphasis on broadband roll-out by MSOs. This has led to an unprecedented advertiser interest in digital which played out with a strong performance of digital in 2016. OTT is therefore seeing a major traction wherein both digital VOD and TV would see a harmonious co-existence.

Increasing FTA channels

The big story is 2016 has been that of the rural viewership habits. BARC viewership data for rural has thrown up interesting insights and goldmine data about rural viewing habits and hence the proliferation of FTA channels. This development will however require realignment of content for mass tastes.

Deeper Audience Measurement

With viewership data leading to better consumer analytics and with advertiser focus and monies increasing in rural HSMs, scientific audience measurement will be the third most important driver for the television industry.

Conclusion

The global economy grew at 2.6% in 2016 while the Indian economy is projected to grow at 7.1% in 2017. The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues.

August 18, 2017

Star Sports FTA to be aired on FreeDish from 21 July

MUMBAI: Shortly after its successful regional foray with the launch of Star Sports 1 Tamil, Star Sports in its relentless pursuit of bringing fans closer to sports launches India’s first private free-to-air sports channel, Star Sports First. The channel will go on air on 21 July on DD’s FTA DTH platform Freedish. This will allow sports fans and enthusiasts to watch their favourite sports, in Hindi, without paying any subscription fee.

Besides a very rich funnel of sports content, the channel will also air the much-awaited VIVO Pro Kabaddi League Season 5, which will begin in Hyderabad on 28 July, 2017. In addition, the channel’s programme calendar will also include BCCI domestic cricket tournaments, domestic football tournament etc.

A Star India spokesperson said: “Television penetration in India has grown exponentially. We recognise that there is a very sizeable subset of this universe that is not on conventional pay TV. In the ‘Free-to-air’ content that they have access to, sports content is mostly absent and only sporadically available. It is our belief that there is, however, an eager appetite for it and that is the reason to launch SS First. We believe tens of millions of fans will be created for many different sports offerings through our content bouquet.”

“Kya aapki life se sports action missing hai”, asks former Indian captain Mahendra Singh Dhoni, in the film ‘Star Sports First, Aana Hai First’, capturing the essence of the launch of the FTA channel. The TVC runs fans through a diverse range of sports that will now be accessible on the Star Sports First channel.

The launch of Star Sports First is supported by a 360-degree marketing campaign, Star Sports First, Aana Hai First, which includes television, radio, OOH and on-ground activations.

July 8, 2017
Block illegal DTH FTA, space dept told

NEW DELHI: The Department of Space has been asked to block the signals of Asia Broadcast Satellite Free-to-air channels which is beaming in India without the permission of the Ministry.

Minister of State Rajyavardhan Rathore said this had been done keeping in view the national security angle. He said the I and B Ministry is the licensing authority for DTH broadcasting services in India and it has received no application or reference from ABS for DTH operations.

Meanwhille, he told Parliament today that there was no violation of Downlinking guidelines by permitted Broadcasters on account of providing signals to unauthorised DTH operators. In order to deter the permitted Broadcasters (channels) from violating the downlinking guidelines, he said the Ministry had issued a Web Notice on 23 December 2015:

http://mib.nic.in/WriteReadData/documents/Notice_to_all_Broadcaster_Private_TV_(Channels)_registered_with_MIB_.pdf

After the Ministry had learnt from Telecom Regulatory Authority of India (TRAI) that ABS had started providing permitted free to air (FTA) channels, the Home Ministry was consulted from the security angle and its implication from national security perspective.

The Home Ministry said the transmission of DTH service by ABS is without any application to the I and B Ministry and not in line with the guidelines of that Ministry.

Clause 5.6 of the Article 5 of Downlinking guidelines issued by Ministry of I&B stipulates that all the Broadcasters (Channels) shall provide Satellite TV channel signal reception decoders only to MSOs/Cable Operators registered under the Cable Television Networks (Regulation) Act, 1995 or to a DTH operator registered under the DTH guidelines issued by the Government of India or to an Internet Protocol Television Service Provider duly permitted under their existing Telecom License or authorized by Department of Telecommunications or to a HITS operator duly permitted under the policy guidelines for HITS operators issued by the Ministry

April 5, 2017
Distributors cannot charge more than Rs 130 per month for 100 SD channels: TRAI order

MUMBAI: Consumers will now be able to receive 100 standard definition channels at Rs 130 a month plus taxes, according to the new TRAI tariff order issued last Friday. This will ensure reasonable rate of return to the DPOs on investments in the existing distribution networks as well as incentivise them for additional investment to ensure better network quality for providing value added services and broadband to subscribers. It is hoped that new framework will bring transparency, level playing field, encourage consumer choice and growth of the sector.

The regulator stated that no separate charges other than this Network Capacity Fee (NCF) would be paid by the subscribers for opting Free-to-Air channels or bouquet of Free-to-Air channels.

In order to provide choice to the subscribers and to curb skewed prices of a-la-carte channels as compared to bouquets, the Authority has mandated that a broadcaster can offer a maximum discount of 15 per cent while offering its bouquet of pay channels over the sum of MRPs of all the of pay channels in that bouquet. The restriction of maximum discount of 15 per cent on formation of bouquet is to ensure that a subscriber is not forced to take a channel which he doesn’t want. Forcing of non-driver channels to subscribers not only reduces choice of subscribers but also eats away bandwidth of distributors of television channels restricting entry of new and more competitive channels.

Digtal addressable television distribution platforms, TRAI stated, are envisaged to provide several benefits to consumers of broadcasting services including better quality of signals, choice of channels, availability of multimedia services etc. With the completion of first three phases of digitization to a large extent, though the addressability, capacity and quality of signal have improved, issues relatéd to consumer choice, transparency and non-discrimination.

Broadcasters want freedom to price their channels. Their contention is that since pricing at retail level is with distributors of television channels, the flexibility to maximise the revenue through advertisement and subscription fee has been compromised. News broadcasters, who primarily provide free-to- air (FTA) channels and have advertisements as only source of revenue, claim that many a time their channels at retail level are priced in such a manner that even pay channels are cheaper than their FTA channels. In the present framework distributors of television channels feel that they are totally dependent on effective negotiations with broadcasters for monetisation of their investment and due to non-transparency in the system, they end up at a loss while bargaining with the broadcasters.

According to TRAI, subscribers feel that the pricing of channels is skewed resulting effectively in no choice of individual channels. They feel lack of transparency. Questions are raised time and again as to why same channel is priced so differently by different distribution platform operators.

While prescribing the new regulatory framework, the TRAI has kept in mind the discussions in the Parliament on the motion for consideration of the Cable Television Networks (Regulation) Amendment Bill, 20 11, wherein the then Minister of Information and Broadcasting stated that TRAI would establish a system wherein consumers would be free to choose a-la- carte channels of choice and they would not be required to subscribe to bouquets.

While framing this Tariff Order, the emphasis of the Authority has been to ensure transparency, non-discrimination, consumer protection and create an enabling environment for orderly growth of the sector. The new framework attempts to address all the issues raised by broadcasters, distributors of television channels and subscribers. The broadcasters will have to declare their channels as ‘Pay’ or Tree-to-Air’ (FTA). Broadcasters have been given complete flexibility to declare maximum retail price (MRP) of their pay channels to subscribers with no restrictions as long as such channels are provided to consumers individually. However, if a pay channel is provided as part of a bouquet, MRP of such pay channel cannot be more than Rs. 19/-. This is to ensure protection of interests of consumers as bouquet deals are oblique to individual channel prices. The new framework in no way restricts or curtails the freedom of broadcasters to price their channels. Provisions have also been made to ensure that no additional charges are levied for subscribing to FTA channels.

The salient features of the Tariff Order are:

• Broadcasters to declare maximum retail price (MRP) (excluding taxes) ), per month, of their a-la-carte pay channels for subscribers.
• A broadcaster can also offer bouquets of its pay channels and declare MRP (excluding taxes) of bouquets for subscribers. However, MRP of such bouquets of pay channels will not be less than 85% of the sum of maximum retail price of the a-la-carte pay channels forming part of that bouquet.
• Separate bouquet for pay channels and free-to-air channels.
• Charges payable by a subscriber for distribution network capacity and channels have been separated.
• The distribution network capacity required for initial one hundred Standard Definition (SD) channels can be availed by a subscriber by paying an amount, not exceeding, Rs. 130/- (excluding taxes) per month to the distributor of TV channels.
• Within the capacity of 100 SD channels, apart from the channels to be mandatorily provided to subscribers as notified by the Central Government, a subscriber will be free to choose any free-to-air channel, pay channel, or bouquet of pay channels offered by the broadcasters or bouquet of pay channels offered by the distributor of television channels or bouquet of free-to-air channels offered by the distributor of television channels or a combination thereof.
• No separate charges, other than the Network Capacity Fee, to be paid by the subscribers for subscribing to free-to-air channels or bouquet of free-to-air channels.
• The additional capacity, beyond initial one hundred channels capacity, can be availed by a subscriber in the slabs of 25 SD channels each, by paying an amount not exceeding Rs. 20/- per such slab, excluding taxes, per month.
• Every distributor of television channels shall offer all channels available on its network to all subscribers on a-la-carte basis.
• Every distributor of television channels shall declare distributor retail price of each pay channel and bouquet of pay channels payable by a subscriber:
• A subscriber can choose a-la-carte channels of its choice.
• Distributors of television channels are permitted to. form bouquets from a-la-carte pay channels and bouquet of pay channels of broadcasters. However, distributor retail price of such bouquets of pay channels shall not be less than 85 per cent of the sum of distributor retail prices of the a-la-carte pay channels and bouquets of pay channels of broadcasters forming part of that bouquet.
• A subscriber has to pay separate charges, other than the Network Capacity Fee, for subscribing to pay channels or bouquet of pay channels.
• Distributors of television channels have to offer at least one bouquet, referred to as basic service tier, of 100 free-to-air channels including all the mandatorily channels to be provided to the subscribers as notified by the Central Government. This bouquet will be one of the options available for subscription to customers. It will be the subscriber Who will be free to exercise his option.
• Any pay channel having a-la-carte MRP of more than Rs 19/- per month (Excluding Taxes) shall not form part of any bouquet.

Also Read:

We believe the new cable TV tariff order will benefit everyone – Hathway Cable video CEO TS Panesar

TRAI gets support from Subhash Chandra on inter-connect guidelines

TRAI free to issue TV tariff, Star HC case disposal in 60 days

March 6, 2017
Adex 17: TV to contribute 45pc, FTA to aid 8pc growth rate, says GroupM

MUMBAI: GroupM, one of the leading global media management investment conglomerates, has released its biannual advertising expenditure futures report ‘This Year Next Year’ (TYNY) 2017, forecasting India’s advertising investment to reach an estimated Rs.61,204 crores in 2017. This represents a growth of 10 per cent for the calendar year 2017 over the corresponding period in 2016.

As per GroupM, the ad spending in 2016 was Rs. 55,671 crore. Even though the year began on a very optimistic note, the overall Adex took a downturn due to lower than expected ad spend growth from sectors like FMCG, traditional retail, telecom and sporadic spending in categories like Ecommerce. In the Januray-October period itself the Adex was growing at a lower trajectory than forecast. Furthermore, demonetization in the last quarter had a negative impact of about 2 per cent on the total Adex in 2016.

Speaking on the TYNY 2017 report, GroupM South Asia CEO CVL Srinivas said, “Despite a volatile 2016, we are estimating advertising expenditure growth at 10 per cent in 2017. The first quarter will give a slow start to the year, with the market picking up from March-April, fueled by a stable recovery process post demonetization. Sectors that are contributing to this positive trajectory include Auto, Media and e-Wallets. In addition Government and Political parties will increase spending with elections in several states this year.” Explaining the media scenario, he added. “Digital is leading the Adex growth with a 30 per cent growth, while TV continues to be the largest medium in the mix. Print continues to grow at a stable rate of 4.5 per cent and is still the second largest medium in the Adex.”

Looking at the advertising industry worldwide, GroupM estimates the global advertising expenditure (adex) to grow by 4.4 per cent and Asia-Pacific to grow by 6.3 per cent. With an estimated adex growth of 10 per cent, India remains one of the fastest growing ad markets globally. While 80 per cent of incremental ad spend growth in major markets comes from digital media, in India the numbers are more evenly split between traditional and digital media. Digital media accounts for about 40 per cent of the incremental ad spend growth.

The Indian advertising expenditure growth rate is also in line with the revised GDP forecast; India’s GDP is estimated to grow between 6.5 to 7.5 per cent. This will be led by low interest rates, sustained urban demand and the impact of key policy reforms. Over the last seven years, ADEX to GDP growth ratio has been between 1.5-2X, and 2017 will be no exception.

GroupM also elaborated on the major media trends that will emerge in the Indian advertising industry. These include trends in sports programming, content, data and digital media. Globally, GroupM has been leading the conversation on viewability with brands and partners. Taking this program forward, chief growth officer Lakshmi Narashimhan, explained the importance of viewability, “As India matures as a digital advertising market, transparency and trust are critical for higher adoption of the medium. Those adopting high viewability standards will be able to differentiate themselves on quality parameters. Once implemented, platform choice and pricing will depend on viewability scores.”

GroupM estimates the Digital Adex to grow by 30 per cent in 2017 to Rs. 9,490 crore. The digital Adex is estimated to take a 15.5 per cent share of the total Adex this year. There will be a high emphasis on viewability metrics and outcome based optimization. Ad spends will grow on OTT platforms, as internet speeds improve and catch up TV gains ground.

2017 is estimated to be a modest year for newspapers with 4.5 per cent growth. The increase in ad spends expected from print heavy sectors like Auto, BFSI, e-wallets will contribute to this growth. Vernacular and regional newspapers will see a higher growth rate.

Television continues to be the largest medium contributing to the Adex with close to 45 per cent share. This year, the growth rate for TV is 8 per cent, with ‘Free To Air’ channels adding more inventory, and pure HD content gaining ground. The market will also see a consolidation of niche channels.

While Radio is expected to grow at a little over 10 per cent, there is scope for the medium to pick up as the Phase 3 rollout is completed in 2017. Higher growth is expected as stations will see the supply impact of the full year.

Other media such as OOH will witness good traction from sectors addressing rural audience and premium niche audience. As per the trend in recent years, Cinema advertising will grow at a high double digit rate of 20 per cent. Cinema consolidation has led to investments in infrastructure, this coupled with the growing acceptance of premium Indian and Hollywood content by advertisers augurs well for the medium.

This Year, Next Year, is part of GroupM’s media and marketing forecasting series drawn from data supplied by holding company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications. The TYNY report is the most comprehensive understanding of the estimated media spends by advertisers in the current year. It also highlights some of the industry sectors that will have a major effect on advertising spends across media.

February 14, 2017