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Television Broadcast Industry Trends Media Essay

Paper Type: Free Essay Subject: Media
Wordcount: 1671 words Published: 1st Jan 2015

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Television broadcasting is the most prominent form of broadcasting which is actually distributing video content to a dispersed audience. It was started experimentally from 1925, commercially from the 1930s. Television broadcasters operate studios and facilities for the programming and transmission of programs to the audience.

The variation from analog-to-digital television broadcasting is going well in progress, creating new business prospects for broadcast equipment manufacturers, as well as television broadcasters. new ways to distribute video content are rapidly evolving and deploying such as Internet protocol television (IPTV) and mobile TV, creating more opportunities for television broadcasters to bring innovation and growth. The accessibility of digital high-definition (HD) content is growing rapidly. The number of HD channels available to the consumer is growing rapidly and HD-capable television sets are setting new sales records. The fundamental for this entire is for the ongoing pursue for improved audio/video quality to enable increased demand and lower costs of distribution, respectively.

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HD (high definition) creation is gaining popularity worldwide .Local broadcast stations and movie studios are increasingly upgrading their facilities to enable HD recording and broadcast to get the attention of is customers. Content scaling is previously recorded content available in a variety of formats. It enables up conversion to HD, cross conversion to different formats, and efficient downscaling for applications such as mobile tv.

IPTV is enabling telecom companies to include video in their product offering. IPTV has quickly evolved from concept to field trials to actual deployments. IPTV also offers cable companies considerable benefits including gradual cost reductions. 

Mobility, convenience, and personalization are the drivers behind the mobile TV trend. Deployment is just beginning, yet uptake has been very promising in Korea and many other areas throughout the world. As the “winning business model” is yet to be proclaimed, there is great opportunity for innovation and differentiation for equipment manufacturers in this market.


Television broadcasting industry in India ia a very huge industry and has thousands of programs in almost all states of India. Almost half of the households in India own a television. In a research conducted in 2010, it was found that a total of 515 channels are available in the country out if which nearly 150 are paid channels.

Indian television markets display today many of the attributes of the sector typical to broadcasting across the world, a mix of state-supported and advertising based services; a separate and growing segment offering scrambled services in return for subscription; a variety of distribution means. At the same time, Indian television has a number of unique characteristics that are the result of its size and history, source of funding, regulation and technology choices. In common with other Indian industries, the development of broadcasting has been coloured by India’s comparative isolation due to tariff barriers and other regulatory constraints. These impacted unevenly across television and related sectors, while Bollywood flourished in part because of the scarcity of non Indian content, Indian broadcasting was confined to a single service – Doordarshan – offered over some of the national territory. Without competition, Doordarshan could focus – from the 1960s to the late 1980s – on programming that responded to the state’s development goals and secular messaging but ultimately proved to be unappealing to audiences.


In India, the television broadcasting industry is undergoing remarkable change and is one of the fastest growing sectors. The main factors responsible for this are rising per capita/ national income; high economic growth and strong macro-economic fundamentals; and democratic set up, good governance as well as law and order position in the country. Specifically, spectacular growth of the television industry, new formats for film production and distribution, gradually liberalizing attitude of Government towards the television broadcasting sector, easier access to and for international companies as well as advent of digital communication and its technological innovations are the other attributes of the growth of the sector. This industry plays an important role in creating people’s awareness about national policies and programs by providing information and education, besides creating healthy business environment in the country. Thus, it helps people to be active partners in the nation-building endeavor.

At present, there are 110 million TV households in India, out of which 70 million are cable and satellite homes and rest 40 million are served by the public broadcaster, that is, Doordarshan.


Indian Broadcasters are now under increasing pressure to present superior quality content, as is reflected in some recent trends:

Narrowcasting or launch of specialty or niche channels, which achieve faster breakeven (given the lower investment) focus also being brought onto regionalization and content creation for Tier II and Tier III towns.

Launch of reality shows, despite the high investments required, to gain viewership; broadcasters are depending on reality shows for channel branding.

Near immediate launch of movies on the broadcasting platform following theatrical release, although at high acquisition costs; however revenue potential of such broadcasting remains a challenge for the broadcasters despite the relatively high gross rating points (GRPs) of the programmes.

Switchback to the outright exclusive rights model for movies to reduce fragmentation of viewership, albeit at higher costs.

Increasing presence in the overseas markets so as to tap non-resident Indians (NRIs) who have been demanding Indian content; this along with dedicated local programming is opening up an additional revenue stream for Indian broadcasters.

Overall, competition is expected to keep profitability under strain for most broadcasters, especially those in the GEC space(GEC refers to fiction and non-fiction shows; examples include, among others, Colors, Zee TV, Sony, Star Plus, and Imagine), over the near to medium term.


The television industry in India continues to experience strong competition from the digital cable and satellite TV industries. The cable TV industry, in particular, represents a significant threat to future industry growth. A number of factors point to low growth in advertising revenue, including forecast low economic growth, the declining overall share of the TV audience, and competition from new media. The bleak outlook for this industry has already prompted News Corp to expand its satellite TV interests. The onset of digital television may provide a much needed boost for demand.

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The entry of newer players in the indian broadcasting industry has had the positive impact on expanding the overall market. For instance, since the launch of the new channels like GECs 9X, Colors, Imagine and Real, the overall GRPs have increased by around 30 per cent in less than a year, according to industry estimates. This has also helped in expanding the overall advertising volumes by 31% in 2009 over 2008. However, with the number of channels increasing significantly over the past decade (over 460 in 2009 from 120 in 2003), every broadcaster is struggling to retain its share of the advertising pie. Following the fragmentation of the advertising revenues, the viewership ratings and hence the placement of a channel have become even more important for broadcasters. In the highly cluttered GEC genre, the largest in the Indian broadcasting space, it has become critical for broadcasters to invest heavily in content development and acquisition so that they can differentiate themselves from their peers. In addition, GECs in particular, being highly dependent on mass segment viewership to attract advertisers, are being forced to incur large carriage fees for the placement of the channels on the prime band in view of the lower bandwidth availability on the analog distribution network. This high expenditure is slowing down the process of achieving breakeven for channels considerably.

To leverage the benefits arising out of foray into regional markets, in general, the basic strategy followed by new entrants in regional markets is to first establish their presence through a GEC, a news channel and a movie channel, and then get into more niche categories. However, as regional markets begin to saturate, a closer evaluation of the regional market’s potential would have to be done before launching a new regional channel.

The swift growth and change in the television broadcasting sector is composed of several essential characteristics: the emergence of mega global communication companies as a result of merger and acquisitions; privatization of existing broadcasting companies; the relaxation of foreign ownership restrictions; corporate investment in newer media such as cable and satellite television; and transnationliztion of advertising and its convergence with communication empires to create a demand for and to promote cultural products and other industries such as consumer goods and services

The Indian television broadcasting industry consists of television distribution, advertising content and other services has reported a compounded annual growth rate(CAGR) of 13.8% over the period of 2005 to 2009 increasing to Rs 26,550 crores according to industry estimates.the industry continues to remain at an attractive mode of entertainment because of its reach and penetration.


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