TV segment revenues fell 4.5% in 2024, for the second year in a row after a 2% fall in 2023. TV advertising revenue fell 6% on the back of similar ad
volume reduction and a 12% reduction in brands using television. Distribution revenue fell 3% on the back of a 6% reduction in Pay TV households (a loss of 6 million paying subscribers to 111 million) and a small increase in ARPU to INR281 (gross of taxes), as per the FICCI-EY report.
Linear TV advertising volumes declined by 6% in 2024 despite viewership remaining relatively stable. Number of advertisers on TV in 2024 decreased by
12% compared to 2023. In 2024, HSM channels bore the brunt of the fall in ad volumes; regional channels captured 16%10 more advertising volume share than national channels, up from a 13% difference last year. Due to the reduction in ad volumes, rates remained weak for most broadcasters.
FMCG accounted for 63% of TV ad volumes, though 8% lower than 2023 volumes in absolute terms, compared to the overall decline of 6%. The fastest growing category in 2024 was building and industrial materials, followed by telecom/ telecom products and banking and financial services. The highest percentage declines were in media, agriculture and services.
The time spent viewing sports reduced 27% mainly due to the ICC Cricket World Cup in 2023, which set viewership records, and which was not there in 2024
Out of 687 million sports viewers on linear TV, 12% came from metros, 36% came from Tier-I and Tier-II cities, whereas 53% came from rural markets. 29 million women viewers watched sports on linear TV in 2024, contributing to 41% of total consumption.
Active connected TV sets reached 50 million, of which around 30 million connected to the internet weekly.
The number of MSOs in India declined to 880 in June 2024, driven by users shifting to OTT platforms and resulting in smaller MSOs merging. Some industry participants also believed that there was an increase in piracy, both linear and digital, which had led to the business of distributing television channels
becoming less profitable.
According to TRAI, there were around 70,000 LCOs in India. We did a survey of around 28,000 LCOs, in which 49% of respondents claimed their subscriber base had fallen since 2018, and 35% of respondents claimed that Confidential, for FICCI onlytheir subscriber base had fallen by over 40% since then
DD FreeDish increased its reach
As of December 2024, DD FreeDish hosted 179 channels, including 37 Doordarshan channels, 12 e-Vidya channels and 33 Swayam Prabha channels
The FreeDish service also delivers All India Radio’s audio programming content of 25 satellite radio channels. Under TRAI’s proposed order, channels offered for free on DD FreeDish must also be FTA on other DPOs; however, this order is yet to be implemented, and many broadcasters fear this order could have significant revenue and/ or reach implications.
It is estimated that free TV, on the back of Prasar Bharati’s FreeDish satellite service, grew in 2024 to reach around 49 million homes. Amongst the 20 dealers of FreeDish customer premise equipment surveyed, 65% believed that the customer base was growing
15% felt it was flat, and Only 5% believed it was degrowing (another 15% were not certain). A large segment which would not wish to spend on Pay TV or on data, but were willing to spend INR300 to INR500 for hardware, if required
Survey respondents who believed that Free TV would remain flat or not grow, thought so because of the following reasons:
Growth in mobile viewing (particularly due to low electrification in certain markets)
Proliferation of fiber connections
TV viewing being limited to the older generation.
YouTube generated massive reach
YouTube continued to grow, reaching 476 million Indians in 2024, or double its audience base in the US. YouTube’s reach in India has grown to 63% of TV’s reach in 2024 (it was 61% in 2023), driven by increased internet adoption in HSM states like Bihar, Jharkhand, UP, Uttarakhand, Rajasthan, and the Northeast where 95% of its users consume content in local languages.
YouTube’s user base in India is expected to reach over 800 million by 2029 on the back of growth in mobile, wireless and wired broadband, providing a formidable proposition to compete with television. With a significant portion of Pay TV programming accessible on platforms like YouTube and OTT services
at no cost, this poses a threat for the growth of linear television.
Consumption of kids content has moved from television to YouTube and Connected TV in a significant manner, aided by the fact that it is available for free and favorite shows are available on demand.