2023 so far many would call an interesting year for TV viewing audiences thanks to a slew of sporting events being hosted this year including the Asia Cup, The Asian Games, and the ICC Men’s Cricket World Cup, among others besides a few reality shows such as Bigg Boss and other fiction such as Naagin, Kumkum Bhagya, among others on Hindi general entertainment channels (GEC). Interestingly, Indian audiences have shown an appetite for both kinds of content. And today it’s no longer about one kind of content versus another as multiple screens have allowed multiple viewing choices. Yet the viewership continues to adversely impact Hindi GECs. “Reality TV programs have helped garner more audiences for Hindi GECs. The shows cater to a younger demographic and thus pack more stickiness and increased content consumption on TV. Live cricket has always had an impact on general entertainment channels (GECs) due to its tussle with GECs for primetime. GECs are affected first and most due to sporting events, mainly cricket,” Vinita Shah, a media analyst, said.
Hindi GECs’ current state of affair
Traditionally it has been the reality shows which has always generated higher television ratings. One of the key reasons behind the success of reality TV shows such as Bigg Boss, Indian Idol, and Kaun Banega Crorepati is to presence of actors like Salman Khan who hosts Bigg Boss and Amitabh Bachchan, who anchors Kaun Banega Crorepati. This is also a reason why these shows besides fiction shows command higher ad rates. If currently TV channels lack fiction shows, there is definitely now dearth of reality shows.
“While there has been a decline in the viewership on GEC, the decline in fiction shows as compared to non-fiction and reality shows in relative terms is lesser. Reality shows and non-fiction shows traditionally are skewed towards younger audiences and most of that target group is migrated or migrating to digital. The same shows enjoy viewership on digital mediums as catch-up content. The decline in non-fiction shows ratings can also be attributed to fatigue, lack of innovation and experimentation,” Ashish Golwalkar, a media consultant, said.
According to industry estimates, the title sponsorship of a reality TV costs anywhere between Rs 80-120 crore. Compared to this the title sponsorship of a regular fiction show during prime-time that is between 8-10 pm costs between Rs 15-20 crore. Similarly, even the ad rates for 10-second spots differ. Case in point, the cost of a 10-second advertising slot during a reality show ranges between Rs 8-12 lakh, while the cost of a 10-second ad spot during the prime-time of a fiction show ranges between Rs4-5 lakh. Besides, broadcasters also tend to bundle and two shows together, if it ranks under top performers.
There was a 65% and 57% increase in ad volume in 2021 and 2022, respectively, in Hindi reality TV shows, as per the latest TAM report. However, there was an approximately 4.85% drop in ad volume in 2022 as compared to 2021. The top 10 categories together accounted for a 43% share in ad volume in the first half of 2023. Furthermore, the volume of ads on Hindi GECs has witnessed a surge of 31% in 2022 when compared with 2020. 2021 also witnessed a hike of 29% in ad volume growth as compared to the previous year (2020).
Furthermore, Hindi GEC accounts for 16% of total ad volumes, as per a report by EY-FICCI while Hindi language viewership remained the most viewed language on television with 43% viewership. India, while being a nation with diverse languages, is dominated by Hindi language content on linear TV.
The OTT effect
The consumption of content on the back of the rise of over-the-top platforms has grown. Addo to that the rise of smartphones and smart TVs. While the urban population has been actively engaged with OTT platforms, linear TV also remains a source of entertainment for metros and tier-1, 2 and 3 cities. “Urban population is migrating to OTT but the base is relatively small so TV even in urban India continues to be the leader with respect to reach. However, with a lot of free OTT services particularly JioCinema, that will change faster. The adoption of digital mediums will get accelerated with platforms like YouTube, JioCinema and MX Player,” Golwalkar added.
The video over-the-top market is expected to grow to $12.5 billion by 2027, as per market intelligence platform, Statista. Hindi content continues to be big on OTT platforms as half of the original content produced for OTT platforms was in Hindi while the other half was content produced in regional languages, according to a report by EY-FICCI. “With changing preferences and vast content availability, there is a difference in consumption behaviour post-pandemic and pre-pandemic. Small video formats like reels and stories garner a lot of attention. The biggest challenge for the GECs would be to bring in variations and variety to suit this changing pattern of content consumption,” Shah added.
Industry experts opine that the adoption of free platforms such as YouTube has been a threat to traditional TV due to its content offerings being vast and diverse. They also believe that once it becomes a habit, it is going to be extremely tough to get the viewers back to TV while cord-cutting is rampant and with most of the content available on YouTube for free. “Younger audiences have moved to OTT regardless of their geography. Older audiences are still reliant on linear TV. Interestingly, people have swapped out their televisions in favour of their mobile phones with the linear TV cord being cut a long time ago even in tier-2 and 3 cities,” Meenakshi Menon, chairperson, Spatial Access, a Deloitte Business, said.