It’s showtime for television channels

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For a year that began with plenty of promise in terms of revenue for the niche and general entertainment segment in the Indian television industry, the first quarter of 2007 has seen some setbacks as well as a few unusual surprises.

The big-ticket KBC3, for instance, after a 52-week run could not quite whip up the television viewership ratings (TVR) frenzy it had in 2000. Despite many innovative add-ons—an interactive quiz called Khelo India Saath Saath, celebrity guests, the show which on day one recorded TVR of 12.33 in the Hindi-speaking belts and one of 11.26 across populations in the metropolises of Mumbai, Delhi and Kolkata, fell to 4.45 and 5.8 respectively during April 2-5, according to TAM Media Research.

Industry sources estimate that Star Plus earned close to Rs 100-crore in ad sales from KBC3, another Rs 70-Rs 80 crore from sponsors, Rs 30-Rs 40 crore from spot ad sales and branding associations. However, they could have earned 50% more with better TVR ratings, experts estimate.

Television holds a lot of promise as the current size of the industry in India is Rs 19,100 crore and the projected size by 2011 is Rs 51,900 crore with a CAGR of 22% according to estimates by the industry and a PwC report.

The World Cup cricket was expected to earn Rs 1,000 crore worth of advertising on SET Max—SET had sold Rs 350-Rs 400 crore worth of spots across 51 matches, Doordarshan has sold Rs 160 crore through spot buys and sponsorships.

However, SET Max experienced a setback when the Men in Blue (Team India) crashed out of the World Cup. Media planners estimate that advertisers lost close to Rs 163 crore (for on-air advertising on SET alone), while SET reportedly lost only 5% of its inventory, which had been reserved for the remaining India matches.

The advent of CAS in 2006 in select areas of Delhi, Mumbai and Kolkata saw mixed results. Advertisers on general entertainment channels have been asking for a 5% drop in rates, according to industry estimates, a figure that might escalate in the second phase of CAS. According to industry observers, CAS has affected Star more than the other broadcasters.