MUMBAI: The very survival of small television networks and free-to-air (FTA) channels is at stake after the advertising<\/a> slump due to Covid-19 pandemic delivered a crippling blow to their cashflows, and with costs mounting every day, the liquidity crunch has now begun hindering their day-to-day operations.

Advertising
revenues<\/a> are a lifeline for smaller channels, constituting over 75% of total revenues but for the FTA channels, they are the only revenue stream. Out of around 900 permitted TV channels in India, only 330 or 1\/3rd are pay channels, while 65% are FTA. The top five broadcasters own around 250 of these channels. A top executive at a large media agency said that no one knows how deep the impact of the current slump will be and for how long this uncertainty over economy will last. “The testing time will be post July when consumers’ sentiments will be truly revealed. Right now everything is based on guess work,” he said. “In April, advertising expenditure was down by 80% and May isn’t looking any better.”

Some experts fear that the tough advertising environment could last a few months before the consumer sentiment changes. “Most of the categories and advertisers are not advertising. I believe this phase will last for another 5-6 months as advertising is driven by sentiments. It’s now a question of survival,” said the ad sales head of a TV network.

ET had earlier reported that categories which advertise heavily during the summer, including soft-drinks, ice-creams, ACs, etc have either not released or deferred their ad campaigns.

“We are in a unique situation where the clients with money aren’t advertising while others who are facing disruption in their business, are in no position to spend,” said a top executive of another media agency.

Sources say that planned campaigns of leading consumer companies like Coca Cola, McDonalds and KFC have been cancelled or put on hold.

A top executive from a traditional media company added that larger networks like
Star India<\/a>, Zee Entertainment Enterprises<\/a> and Sony Pictures Networks India will weather the storm due to their size, existing cash reserves, support from holding companies — and distribution revenues which might get delayed, but will not be wiped out.

“It looks like the overall ad ecosystem has collapsed and most of the impact will be on smaller and regional networks. If the crisis drags on for another 5-6 months, you will see a lot of channels staring at bankruptcy,” he added.

<\/p><\/body>","next_sibling":[{"msid":75630388,"title":"Mukesh Ambani isn't letting a lockdown derail his plans of tech-domination","entity_type":"ARTICLE","link":"\/news\/mukesh-ambani-isnt-letting-a-lockdown-derail-his-plans-of-tech-domination\/75630388","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"75639174","title":"tv thinkst","entity_type":"IMAGES","seopath":"industry\/media\/entertainment\/media\/small-tv-networks-pushed-against-wall\/tv-thinkst","category_name":"TV broadcasters face existential crisis amid drop in ad revenue","synopsis":false,"thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-814876\/75639174.cms?width=150&height=112","link":"\/image\/industry\/media\/entertainment\/media\/small-tv-networks-pushed-against-wall\/tv-thinkst\/75639174"}],"msid":75639464,"entity_type":"ARTICLE","title":"Small TV networks pushed against wall","synopsis":"The very survival of small television networks and free-to-air (FTA) channels is at stake after the advertising slump due to Covid-19 pandemic delivered a crippling blow to their cashflows, and with costs mounting every day, the liquidity crunch has now begun hindering their day-to-day operations. ","titleseo":"telecomnews\/small-tv-networks-pushed-against-wall","status":"ACTIVE","authors":[{"author_name":"Gaurav Laghate","author_link":"\/author\/479252640\/gaurav-laghate","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479252640.cms?width=100&height=100&hid=268","author_additional":{"thumbsize":true,"msid":479252640,"author_name":"Gaurav Laghate","author_seo_name":"gaurav-laghate","designation":"Assistant Editor","agency":false}}],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2020-05-09 08:07:58","lastupd":"2020-05-09 08:09:00","breadcrumbTags":["TV networks","Zee Entertainment Enterprises","star india","covid impact","lockdown","Industry","advertising","revenues"],"secinfo":{"seolocation":"telecomnews\/small-tv-networks-pushed-against-wall"}}" data-authors="[" gaurav laghate"]" data-category-name="" data-category_id="" data-date="2020-05-09" data-index="article_1">

小电视网络紧靠着墙

生存的小电视网络和免费(自由贸易协定)频道广告衰退后的股份是因为Covid-19流行带来了严重打击他们的现金流,和每天成本增加,流动性危机已经开始阻碍他们的日常生产中去。

Gaurav Laghate
  • 更新2020年5月9日08:09点坚持

孟买:生存的小电视网络和免费(自由贸易协定)通道后岌岌可危广告衰退由于Covid-19流行带来了严重打击他们的现金流,和成本越来越多的每一天,流动性危机已经开始阻碍他们的日常生产中去。

广告收入生命线的小通道,构成超过总收入的75%但自由贸易协定的渠道,他们唯一的收入来源。的约900允许电视频道在印度,只有330年或三分之支付渠道,而65%的是自由贸易协定。五大广播自己的这些通道约250。一家大型媒体公司的一位高管说,没有人知道有多深的影响当前的衰退将会和这个不确定性经济将持续多长时间。“测试时间将发布7月当消费者的情绪将会真正透露。现在一切都是基于猜测工作。”他说。“今年4月,广告支出下降了80%,可能不是更好吗。”

广告
一些专家担心,艰难的广告环境可能会持续几个月之前,消费者信心指数的变化。“大多数的类别和广告商不是广告。我相信这一阶段将持续5 - 6个月广告是由情绪驱动的。现在是生存的问题,电视网络广告销售负责人表示。

等早前报道,类别,在夏季大打广告,包括软饮料、冰淇淋,ACs等没有公布或延迟他们的广告活动。

“我们处于一个独特的情况,客户的钱不是广告虽然人面对他们的业务中断,无法花,”另一家媒体公司的一位高管说。

消息人士称,计划活动的主要消费者像可口可乐这样的公司,麦当劳和肯德基已经取消或暂停。

从传统媒体公司一名高管说,更大的网络星空集团印度公司,Zee娱乐企业和索尼影视网络印度将暴风雨天气由于其尺寸,现有的现金储备,控股公司和销售收入的支持可能会延迟,但不会消失。

“看起来整个广告生态系统已经崩溃和大部分的影响将在较小和地区网络。如果危机持续5 - 6个月,你会看到很多渠道盯着破产,”他补充道。

广告

  • 于2020年5月9日08:07坚持
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MUMBAI: The very survival of small television networks and free-to-air (FTA) channels is at stake after the advertising<\/a> slump due to Covid-19 pandemic delivered a crippling blow to their cashflows, and with costs mounting every day, the liquidity crunch has now begun hindering their day-to-day operations.

Advertising
revenues<\/a> are a lifeline for smaller channels, constituting over 75% of total revenues but for the FTA channels, they are the only revenue stream. Out of around 900 permitted TV channels in India, only 330 or 1\/3rd are pay channels, while 65% are FTA. The top five broadcasters own around 250 of these channels. A top executive at a large media agency said that no one knows how deep the impact of the current slump will be and for how long this uncertainty over economy will last. “The testing time will be post July when consumers’ sentiments will be truly revealed. Right now everything is based on guess work,” he said. “In April, advertising expenditure was down by 80% and May isn’t looking any better.”

Some experts fear that the tough advertising environment could last a few months before the consumer sentiment changes. “Most of the categories and advertisers are not advertising. I believe this phase will last for another 5-6 months as advertising is driven by sentiments. It’s now a question of survival,” said the ad sales head of a TV network.

ET had earlier reported that categories which advertise heavily during the summer, including soft-drinks, ice-creams, ACs, etc have either not released or deferred their ad campaigns.

“We are in a unique situation where the clients with money aren’t advertising while others who are facing disruption in their business, are in no position to spend,” said a top executive of another media agency.

Sources say that planned campaigns of leading consumer companies like Coca Cola, McDonalds and KFC have been cancelled or put on hold.

A top executive from a traditional media company added that larger networks like
Star India<\/a>, Zee Entertainment Enterprises<\/a> and Sony Pictures Networks India will weather the storm due to their size, existing cash reserves, support from holding companies — and distribution revenues which might get delayed, but will not be wiped out.

“It looks like the overall ad ecosystem has collapsed and most of the impact will be on smaller and regional networks. If the crisis drags on for another 5-6 months, you will see a lot of channels staring at bankruptcy,” he added.

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