In the age of cord-cutters and streaming services, it’s impressive to see that DD Free Dish, India’s free-to-air direct-to-home service, is not just surviving but thriving. In fact, the platform has witnessed a surge in popularity, with Prasar Bharati’s revenue from MPEG-2 slots increasing by a staggering 66 per cent to reach Rs 1071 crore. This bounce-back comes after a 12 percent decline last year, and the revised methodology for e-auction is being credited for the turnaround.
However, industry experts believe that broadcasters and advertisers’ need to reach a vast rural population and generate maximum ROI has also contributed to this growth. Despite the rise of streaming platforms, DD Free Dish remains the preferred platform for cost-conscious consumers who don’t want to compromise on quality entertainment. With its potential for incremental sales and the ability to reach a vast rural population, it’s no wonder that DD Free Dish has become so popular. So, it seems that even in this digital age, DD Free Dish is here to stay.
Pay TV’s Loss-Free Dish’s gain
Interestingly, according to the latest FICCI-EY report, the subscription revenues of television in India saw a 6 percent decrease in 2021 due to a fall in average revenue per user (ARPU) as customers adjusted their packs and a reduction in the paid subscriber base by around six million television homes.
The decline in the number of homes has been attributed to both cord-cutting at the top end and a shift to free television (FreeDish) at the bottom end of the customer pyramid. Meanwhile, free television continued to expand its reach, with an estimated 43 million subscribers due to the addition of new channels, economic factors, and less expensive television sets. The FICCI-EY report predicts that the DD Free Dish base will exceed 50 million homes by 2025.
The Free Dish Universe
Bernadine Dsouza, associate director – strategy, Carat India explains the Free Dish phenomenon in India. According to him, the platform added about 21 million subscribers within a span of 5 years, till 2022, and reaches about 43-45million households currently.
This phenomenal growth was driven by less expensive television sets, economic issues, and the addition of new channels to the platform. Hosting almost 167 TV channels, and 48 radio channels, including 91 Doordarshan channels and 76 private TV channels, the platform has garnered a huge reach in the past few years. The platform currently hosts channels showing drama, movies, news, music, and regional and foreign content, making it more diverse and appealing over the years.
“The growth in the Indian rural population is majorly responsible for the growth of the DD Free DISH Network,” Dsouza says.
Love it or hate it, the consumer has spoken and cannot do without free television.
Cost-Benefit analysis
No wonder the huge reach turned out to be a cash cow for the public broadcaster at this year’s MPEG-2 slot auctions. Most buckets saw an impressive turnout both in terms of bids and total earnings. Bucket Bucket A+ for instance that comprises Hindi GECs (General Entertainment Channels) sold 11 slots for Rs 189.65 crore against last year’s six slots that went for Rs 91.1 crore. This pushed the bucket average by at least Rs 2 crore.
Ramsai Panchapakesan, the senior vice president and national head of Integrated Media Buying at Zenith, provides insight into the cost proposition for channels vying for a slot on DD Free Dish. According to him, there is a vast array of content inaccessible to audiences across rural India. The channels that bid for free dish slots typically consist of small to medium-sized enterprises that have their eyes on this audience base. These channels focus on content syndication at an economical and affordable cost proposition. As a result, the revenue margins of these bidders are kept in line with the expenditures and input costs required to sustain their operations.
While GECs have been known to be generous spenders on DD Free Dish, other categories such as news also witnessed a massive turnout during the recent e-auction of MPEG-2 slots, despite some initial concerns over the high cost of bidding.
Why are news channels competitive about securing a slot on Free Dish though?
“Being on Freedish gives news channels an opportunity to garner mass reach and guaranteed eyeballs, especially in rural regions. In a year’s time, India will witness several assembly polls and Lok Sabha elections in 2024, and it is imminent for channels to be present on the platform,” says an industry expert.
As a genre, news is consumed out of habit developed over a period and the advantage that medium like Freedish offers is the stickiness and longevity, making it a lucrative reach-maximizer for channels which in turn enable them to get a decent ROI in terms of ad pricing.
Low-cost advertising opportunity and room for growth
From the advertiser’s perspective, advertising on Free Dish makes sense for several reasons. Firstly, there is a cost benefit as the pricing of pay channels is typically 35 percent to 40 percent higher for pay TV, based on audience profile and content library. However, there are other factors that make advertisers active on Free Dish, according to Panchapakesan.
He explains that close to 67 percent of the population in India resides in rural areas, and approximately 37 percent of FMCG consumption comes from these consumers.
Being on Freedish gives news channels an opportunity to garner mass reach and guaranteed eyeballs, especially in rural regions. In a year’s time, India will witness several assembly polls and Lok Sabha elections in 2024, and it is imminent for channels to be present on the platform.
“This presents an opportunity for advertisers to expand their reach by up to 67 percent. Incremental sales are only possible when new consumers are added, as existing consumers tend to buy what they require in a consumption-driven economy. These new consumers, who aspire to purchase branded products, are reached through free dish channels, which take brand communications to them and build aspiration in their ecosystem. This is how advertisers benefit from free dish advertising,” he says.
Validating Panchapakesan’s observation on the advertiser sentiment, Abhishek Kaushik, founder of D2C FMCG brand Mitra that sells a range of flour, pulses, spices, dry fruits, rice, instant mixes, millet-based and ready-to-eat products says as an FMCG brand, they recognize the immense potential of advertising on channels available through DD Free Dish.
“The platform offers an extensive reach across India, including rural and remote areas, which is a crucial segment for our products. We can effectively communicate with our target audience and build brand awareness at a national level. By investing in this platform, we are not only expanding our market reach but also supporting the democratization of access to entertainment and information. Overall, advertising on DD Free Dish is a strategic decision for us, and we are pleased to be part of this growing platform,” he says.
As the EY FICCI M&E Report – Turning into Consumer says, “Love it or hate it, the consumer has spoken and cannot do without free television.”
The only thing missing from the platform is high quality content but that hasn’t stopped its reach from growing. The same FICCI-EY report says soon originals and regional content will be added to the mix of the existing options on the platform to serve an audience segment that will always prefer free access and is not that bothered around quality.
No hidden fees: Quick take from the corner office
Prasar Bharati CEO Gaurav Dwivedi tells Storyboard18 that the popularity of Free Dish comes down to factors like economic viability, deep reach and no hidden fees.
Dwivedi says, “There are no hidden charges or fees when it comes to DD Free Dish. Also as a public broadcaster, Prasar Bharati not only broadcasts its own channels but also provides a platform for other channels to share, enabling a large number of audiences to access a wide variety of content. Since most channels are ad-supported, the reach that free dish provides translates into adequate revenues for them.”
The growth in the Indian rural population is majorly responsible for the growth of the DD Free DISH Network
Free Dish has been around for about 20 years, and over that period, Dwivedi says the platform has seen a massive technological upgrade to offer better services to both broadcasters and end users. In 2024, the organisation plans to offer a greater variety of content to viewers by allowing an even larger number of channels to come on board.
Dwivedi also explains the reasons behind the rise in popularity of Free Dish over cable TV or other platforms.
“Firstly, cable TV relies on LAN cable networks, which can be expensive to lay in sparsely populated areas. This makes it difficult for cable TV operators to set up a financially viable network in these areas. Therefore, the choice for the consumer then lies between going for a Free Dish or one of the other platforms.”
“Additionally Free Dish includes only a one-time expenditure for setting up the dish and antenna, after which there are no charges,” he says, adding, “Overall, Free Dish offers a valuable proposition for viewers who want access to a wide variety of content without any hidden fees or charges.”