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.

However, most channels are eager to brush off the downturns in the first quarter of 2007 and look forward to the second part of the year. They insist that the second part of the year offers plenty of promise that should make viewers and advertisers equally buoyant. Star Plus, for example, has replaced the prestigious 9 pm-10 pm prime time slot where KBC3 was running until April 19, with a Fox TV Studio presentation—Meri Awaz Ko Mil Gayee Roshni and a Balaji soap (Kasturi). To perk things up, Sony will start airingIndian Idol 3 from May and SET Max has begun airing the Amitabh Bachchan film festival from Monday.

Says Harsh Rohatgi, general manager (content and communication), Star India: “KBC3 gave us the eyeballs we wanted. In a post-CAS scenario even a TVR of 12 is very good. Actually 2007 has been a monumental year for TV—with CAS, the new TAM panel which fragmented the market considerably.”

Budgets of shows have clearly shot up in keeping with changing demands from advertisers. Zee TV’s ‘Saregamapa, Challenge 2007’ series has been mounted on a lavish scale and as Ashish Kaul, vice president, Zee TV says, “Saregamapa is one of the most expensive and expansive shows of Indian television.”

Zee, which has had a smooth run so far and is Star’s nearest rival in the TVR battle claims that the financial year 2006-07 has been outstanding. “Zee Network and Zee TV in particular have recorded growth of over 31% in ad revenues over the previous year.

Significant and major advertisers have taken a long-term position on Zee TV.” According to industry estimates, Indian TV homes could grow from 112 million to 200 million. Even the pay TV market is poised to grow from the present 70 million to all TV homes.

Despite setbacks, there are a few bright spots in 2007. In the niche channel category, for example, as per TAM all India viewership data for the Q1 of 2007, Discovery Channel garnered higher viewership than English films, news, entertainment and music channels, including Star Movies, HBO, MTV, NDTV 24x7, Channel V and CNN-IBN. An upbeat Rajeev Bakshi, associate director, marketing, Discovery channel and Discovery Travel & Living, admits that while “ad spend and show budgets have shot up like never before these are good times for international channels like us. We have a 18% market-share and reach 33 million homes”.

Niche channels, therefore, have had something to celebrate in the first quarter of 2007. Rajesh Sheshadri, vice president (marketing), History India and National Geographic confesses that so far as revenues are concerned both channels are doing very well. While the National Geographic has clocked in nearly “35% growth” in Q1 2007, over Q1 2006, the absolute reach has increased by 53% and the time spent on the channel by 15%, according to TAM Media Research.

Discovery Travel & Living, which turns three this year reaches 23 million homes and is in a “comfort zone already being the only international, lifestyle, travel channel in India,” adds Bakshi.

Realignment has also helped. The History Channel that has shifted focus to entertainment in 2006 saw a rise in channel shares--by over 150% from May 2006 to Q1 2007. Explains Sheshadri, “The absolute channel reach has gone up from 16.3 million in May 2006 to 22.5 million in March 2007 . In terms of revenues, the channel has 50% growth over the same period last year.”

Meanwhile, even for children’s channels Cartoon Network and Pogo—the market leaders in their category, the upcoming months will offer a programming mix of new shows and blockbusters. “Although our channels do well year-round, the peak periods for revenue are Q2 because of summer and Q4 because of the festive season,” says Monica Tata, vice-president, advertising sales, India & South Asia, Turner International India.