Private TV channels to lose huge advertisement revenue

Ministry of Information and Broadcasting (MOIB) to withdraw TV channel slot auction process fromplatform DD-Freedish, private TV channels bound to lose huge advertisement revenue. It is pertinent to mention here that most of the big private TV channels have become Free-to-Air(FTA) channel due to the availability of DD-Freedish reach at a very nominal fee and as a result there was a sudden increase of their TRPs and hence the advertisement revenue. In fact few of private TV channels which are still a pay channel for private DTH platforms and cable operators have become FTA for DD-Freedish.

Suspension of e-auctionThe last e-auction took place in July, in which DD-Freedish had earned Rs85.10 crore and awarded slots to 11 private broadcasters. Another auction scheduled for August was cancelled by the broadcaster, citing “administrative reasons” as per the notice dated 18.8.2017.

DD-Freedish used to hold e-auction once in every couple of months to award vacant channel slots on DD Freedish to private broadcasters. At present, the platform carries 80 TV channels, including private entertainment channels like Star Utsav, Sony Pal, Zee Anmol, Rishtey and news channels like Aaj Tak, ABP News, Zee News, News 24 etc. At present the platform has two vacant slots but the number will increase to about ten by the end of this month if no decision is taken by the ministry.

In the last three years, large broadcasters including Zee, Star and Sony have been leveraging the DD-Freedish platform to access the DD stronghold markets by broadcasting content that is superior to that shown on Doordarshan. It is estimated that DD Freedish increased its reach to around 25 million households in a run-up that is faster than the growth of the entire DTH industry in the last few years. The advertisement revenues of private TV channels have increased manifold.

Few private TV channels have already moved to TDSAT against DD-Freedish decision.