Picture set to turn bleak for broadcasters

Television broadcasters are a worried lot these days, thanks to the economic slowdown and the sharp rise in operating costs. Most under pressure are those in the news and entertainment genres.

"Broadcasters have become tense. There is inflation and there are signs of sluggish growth in the economy. Advertisers may eventually slash ad spends," said a Delhi-based consultant who sells advertising space for a clutch of film and entertainment channels.

A senior Star India executive added: "What adds to the squeeze is that channel income is not growing at the rate at which the input costs are rising."

Television generates Rs 8,500 crore as advertising revenue. Of this, the Hindi general entertainment channels grab nearly 50 per cent. The news channels make about Rs 1,000 crore a year.

Publicly, heads of broadcasting companies claimed that their channels have done well in the last two-three months and that they are not worried about the immediate future.

Privately, some of them admitted that the picture is no longer rosy. Yield from advertising is on the decline and subscription income is stagnant, while programming, marketing and distribution costs are rising.

Executives of at least two news channels admitted that advertising revenues dipped slightly last month and that they have not been able to increase their rates either.

Increased competition, especially in the Hindi general entertainment segment, has lead to a surge in availability of commercial airtime. In less than a year, two players