X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Media: The endorsement story... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 28, 2007

    Media: The endorsement story...

    In an earlier article we had explained the key trends in television advertising in the first half of 2007. In this article we shall have a review of the advertisement volumes across the different genres of channels and programmes in CY 06.

    Ad volumes across channel genres
    The different genres of television channels are Hindi general entertainment channels, Hindi movie channels, regional general entertainment channels, Hindi news channels, and English news channels. The major Hindi GEC channels are Star Plus, ZEE TV, Sony TV. Popular regional entertainment channels are SUN TV, Etc Punjabi.

    The pie chart below shows the contribution of genre of channels in TV advertising (volume wise) in the year 2006.

    Regional GECs on TV contributed 23% share of advertising in the year 2006. Hindi news channels contributed 13% share on TV. However, the revenue share of different genres of channels reveals an altogether different picture.

    General entertainment channels have a maximum revenue share of 40% while southern regional channels have a share of 19%. Thus the ad volumes on the regional entertainment channels are higher but the ad rates per second are significantly lower than on Hindi general entertainment channels. However, the viewership and revenue share of the Hindi general entertainment channels is going down while that of niche and regional channels is going up. The rollout of CAS and DTH will lead to an increase in the proliferation of regional and particularly niche channels, as they will be able to garner subscription revenues to sustain their operations.

    Ad volumes across program genres
    News bulletin genre accounted for the maximum 18% share of ad volumes closely followed by feature films with 16% share on TV in the year 2006. India is one of the few countries in the world where news bulletins enjoy such high viewership and high ad rates. This is one of the key reasons for the proliferation of several Engish, Hindi and regional news channels. Infact, broadcasters are even launching city centric news channels to cash in on the same. TV Today has launched its Delhi-centric news channel.

    However, the soaps that are telecast on prime time (between 8 p.m to 11 p.m.) enjoy high TRPs and higher ad rates. One-day cricket matches featuring India also command high ad rates. Recently music and reality shows have become very popular and are telecast on prime time enabling them to garner significant advertisement revenues.

    The next diagram shows the program genres with the maximum growth in the year 2006 over 2005. All the top five program genres saw rise in ad volumes in 2006, with huge 90% increase registered in ad volumes of film songs compared to the previous year

    We expect the buoyancy in advertisement revenues to continue in line with the buoyant growth in the Indian economy. The above analysis shows that news, movie channels and general entertainment channels, which have the right content, are likely to do well in the future. The high TRPs enjoyed by these channels will enable them to garner higher advertisement and subscription revenues. Niche channels do not enjoy such a high viewership and thus their advertisement revenues continue to languish. Consequently, niche channels would have to garner subscription revenues for their survival.

     

     

    Equitymaster requests your view! Post a comment on "Media: The endorsement story...". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Taxes, lower other income mar bottomline (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE TECK


    Aug 18, 2017 (Close)

    S&P BSE TECK 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS