FICCI-KPMG-Report-13-FRAMES

The power of a billion: Realizing the Indian dream
33
Music
While the music genre continues to be a very competitive
space, viewership share increased from 2.7 percent in
2011 to 3.1 41 percent in 2012. However, 2012 saw the
genre approach a ‘hyper-competitive’ scenario with a large
number of channels competing for the viewer mind-share
and time-share. With Hindi film music dominating the
content on music channels, content differentiation has
always been a challenge. Broadcasters are now looking
at specialized music channels to engage viewers. 9XM
launched two new niche music channels – 9XO which runs
international music content and 9X Jalwa which features
timeless ‘Bollywood’ hit songs.
“
LC1 markets are now being reported by
TAM and that will have an impact on all
channels and broadcasters will have to
make investments to increase reach in
those markets.
“
- N P Singh
COO,
Multi Screen Media Private Limited
“
“
The music genre is very crowded. Further,
music is consumed through various media
– not just TV.
- Shailesh Kapoor
CEO,
Ormax Media
on LC1 markets, the music channels will be impacted and
may need to consider investing more in carriage payouts to
be able to increase reach in these regions.
Channel [V] effectively exited the music genre, replacing
music with youth focused fiction and non-fiction
programming and may be looking for higher advertisement
rates with its new positioning as a youth GEC channel.
“
No other genre has so many number of
channels. This clearly demonstrates that
music is a liked genre across various target
group of people and their geographies.
Like it happens in all genres, people/
viewers bookmark their favorite and
preferred channels. Digitisation will lead
to more offerings to consumers/viewers.
So there will be an overall increase in the
consumption of favourite/preferred/niche
channels. It’s a fact that music, across
languages and English language channels,
is the driving category of preferred/niche
channels. Music consumption would
continue to grow with regional viewership
growing. Markets like Punjab, Haryana,
Maharashtra, and Bengal have responded
very well. Also, digital ENGAGEMENT, and
not just presence, would be one of the key
differentiators for broadcasters.
“
- Punit Pandey
EVP New Business,
9X Media Pvt. Ltd.
Hindi music accounts for close to 75 42 percent of the
advertisement market. However, growing advertiser
interest in regional markets has led to music channels
looking at further expansion in the regional markets. 9X
Media Pvt. Ltd. launched two new regional music channels
in Punjabi and Marathi market - 9X Tashan and 9X Jhakaas,
respectively. CNEB launched a new Bhojpuri music
channel, ‘Hummra M’. However, with TAM now reporting
41. TAM; Week 1 to 52, 2012, All India CS4+ market. Copyright reserved with TAM MEDIA RESEARCH PVT.
LTD. Any use of TAM data (or derivative thereof) mentioned herein without express permission of TAM
shall be treated as illegal
42. Indian television, 12 February 2013
43. TAM; Week 1 to 52, 2012, All India CS4+ market. Copyright reserved with TAM MEDIA RESEARCH PVT.
Our discussions with industry players indicated that
consumption of music is across various platforms, and
therefore a standalone TV strategy for music channels may
not be sustainable. Digital extensions of music channel
brands onto online platforms, including pads and phones
will drive revenue growth and will need to be considered in
the medium term.
News
The news genre consists of general and business news in
Hindi, English and regional languages. Hindi and regional
news account for 50 percent and 5 43 percent of total news
viewership, respectively. In 2012, news viewership declined
by 15-20 44 percent, with English News channels impacted
more than Hindi channels. Several news channels appear to
have witnessed a decline in advertisement revenue in 2012
as rates continued to be under pressure.
A decrease in carriage fees is critical for news channels, as
carriage payouts are significantly higher than subscription
revenue. English news channels are reported to spend
approximately 70 45 percent of their distribution costs on
carriage fee in metros. However, discussions indicate that
the news genre is yet to achieve significant benefits from
digitisation of metros, which account for a significant share
of their viewership. While subscription revenue benefits are
yet to flow in, overall decline in carriage fee payments for
news channels has been below industry expectations.
Earlier this year, Star group exited its 26 percent 46 stake
in MCCS which runs Hindi, Bengali and Marathi news
channels due to its inability to invest more than the FDI limit
of 26 percent.
The upcoming national elections that may be held in 2013 or
2014 are expected to help improve advertisement revenues
for news channels.
LTD. Any use of TAM data (or derivative thereof) mentioned herein without express permission of TAM
shall be treated as illegal
44. Pitch Madison
45. Indiantelevision.com, 24 July 2012
46. Business Standard, 2 April 2012
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