OVERALL GLOBAL AND INDIAN ECONOMY OVERVIEW
a GLOBAL ECONOMY
The IMFs World Economic Outlook Update report for January 2024 paints a notably brighter picture of the global economy compared to the previous year. The projections indicate a substantial improvement in the global growth rate, set at 3.1% for 2024, a 0.2 percentage point higher than that in October 20231. This resurgence signals a robust pace of economic expansion, propelled by enhanced resilience in both the United States and emerging markets, alongside significant fiscal support measures in China. However, it is noted that advanced economies, including the United States, may witness marginal dips in growth rates before regaining momentum in 2025.
Regarding inflation, the outlook remains positive for the upcoming years. Forecasts suggest a decline in inflation to 5.8% in 2024, further dropping to 4.4% in 20252. These projections mark a substantial improvement from previous periods plagued by persistent inflationary pressures. This also underscores the influential role of the central banks policy rates in shaping economic activity, as well as the potential effects of withdrawing fiscal support on inflation dynamics.
Overall a more optimistic and favourable trajectory for global growth and inflation in 2024 and 2025, underlines the significance of policy actions and fiscal adjustments in navigating potential challenges and fostering economic resilience.
^ INDIAN ECONOMY
According to the World Banks South Asia Development Update, Indias growth is forecasted to reach 7.5% in FY 2023-24 but is anticipated to slow down to 6.6% 1 2 3 4
1 World Economic Outlook, IMF I Jan 2024
2 World Economic Outlook, IMF : Jan 2024
3 India: South Asia Development Update, The World Bank : Apr 2024
4 Press Note, National Statistical Office - NSO I 29 Feb 2024
in FY 2024-25, with a subsequent recovery expected in the following years3. This deceleration in growth in FY 2024-25 is attributed to factors such as the subdued external environment, the normalization after the COVID-19 rebound, and a general slowdown in activity, especially in capital expenditure, during the election period. However, the medium-term outlook remains positive due to previous public investments, which are expected to stimulate corporate investment and drive private consumption growth.
The National Statistical Office (NSO) also estimated Indias real GDP growth at 7.6% in FY 2023-24, reflecting an increase from 7.0% in FY 20 22-234.
This projected growth in the Indian economy is expected to have a positive impact on the Media and Entertainment (M&E) sector, which has shown a faster recovery compared to the overall economy. The Interim Budget for 2024-25 has allocated Rs.4,342.55 crores for the Ministry of Information and Broadcasting, slightly lower than the revised estimates of Rs.4,449.76 crores in the previous fiscal year. Its important to note that these figures are from the Interim Budget, with the full budget set for presentation in July 20245.
OVERVIEW OF THE INDIAN MEDIA &
ENTERTAINMENT (M&E) SECTOR
In 2023, the Indian Media and Entertainment (M&E) sector witnessed a growth of 8.1%, bringing its total value to Rs.2,32,000 crores (US$27.9 billion)6. This growth signifies an increase of Rs.17,300 crores over last year7. However, this growth, reveals a nuanced picture as segments like television, print, and radio still continue to operate below their pre-pandemic levels. Projections for the sector are optimistic, with an expected 10.2% growth that would push the industry to Rs.2,55,000 crores by 2024, followed by a steady CAGR of 10%, culminating in a value of Rs.3,08,000 crores by 20268 .
| Segment | 2022 | 2023 |
| Television | 70.9 | 69.6 |
| Digital Media | 57.1 | 65.4 |
| 25.0 | 26.0 | |
| Filmed Entertainment | 17.2 | 19.7 |
| Online Gaming | 18.1 | 22.0 |
| Animation and VFX | 10.7 | 11.4 |
| Live Events | 7.3 | 8.8 |
| Out of Home Media | 3.7 | 4.2 |
| Music | 2.2 | 2.4 |
| Radio | 2.1 | 2.3 |
| Total | 214.4 | 231.7 |
| Growth | 8% |
All figures are gross of taxes ( in Rs.000 Crores) for calendar years : Source: #Reinvent: EY-FICCI Media and Entertainment Outlook, March 2024
A notable highlight within this growth narrative is the substantial contribution made by emerging sectors such as digital and online gaming, which have significantly expanded their market share from 20% in 2019 to an impressive 38% in 2023. This leap translates to an added value of Rs.12,200 crores, underscoring the dynamic evolution of Indias media landscape9.
In the year 2023, all sectors of the M&E industry exhibited positive growth trajectories, barring television, which, while retaining its position as the largest segment, faced challenges in matching its previous growth rates and shrunk by 1.8% in 2023. Digital media, on the other hand, is poised for a monumental shift as it gears up to surpass television as the leading segment in 2024, marking a pivotal moment in the industrys evolution.
Advertising growth fell behind Indias GDP growth rate. Indias nominal GDP expanded by 9%, whereas advertising only grew by 7%10. Currently, advertising January 2024 for FY24 : #Reinvent: EY-FICCI Media and Entertainment
Outlook, March 2024 accounts for 0.33% of Indias GDP11, significantly lower than major developed markets, where the ratio ranges from 0.6% to 1%.
Examining the composition of revenues within the M&E domain, traditional media components like television, print, filmed entertainment, live events, out-of-home (OOH) advertising, music, and radio collectively accounted for 57% of sector revenues in 2023, a decline from their 76% share in 2019. This decline is balanced by the surge in experiential sectors such as online gaming, filmed entertainment, live events, and OOH media, which collectively contributed 48% to the overall growth trajectory in 2023, showcasing the growing diversification and dynamism of the sector12.
KEY TRENDS SHAPING THE M&E INDUSTRY
Connected TVs - Transforming Advertising and Content Creation in the M&E Industry: The surge in Connected TVs (CTV) is reshaping the landscape of the media and entertainment (M&E) industry in India. According to the #Reinvent: EY-FICCI Media and Entertainment Report March 2024, Connected TVs experienced a 50% growth in 2023, reaching over 3 crore households. Notably, smart TV sets accounted for more than 90% of television sales during this period. This adoption trend is propelled by factors like faster internet, the advent of 5G, and the engaging content featured in major events like the IPL13. Your Company too has solidified its CTV dominance with video views showing a remarkable 66% surge in FY 2023-24.
In the context of advertising and marketing, Connected TVs present a unique opportunity for immersive and interactive audience engagement. The data-driven nature of CTV advertising enables precise audience segmentation based on user behaviour, interests, and demographics, unlike traditional televisions reliance on broad demographics. This precision targeting enhances advertiser reach, engagement, and conversion rates. Moreover, the flexibility of CTV advertising models, such as shorter, non-intrusive ad formats, resonates well with modern viewer preferences, ensuring a seamless and enjoyable viewing experience on OTT platforms.
Similarly, for content creators, Connected TVs offer a direct avenue to reach consumers, bypassing traditional broadcast channels and providing greater control over content distribution. This has led to a proliferation of diverse and niche content, catering to the varied interests of viewers.
PWCs Global Entertainment & Media Outlook 2023-2027: India perspective report released in July 2023 emphasizes the immense long-term potential of the OTT and Connected TV market in India, driven by the countrys vast and diverse population. The report predicts continued growth in OTT video, especially fuelled by regional content, and anticipates further market expansion with advancements in 5G and broadband infrastructure14.
The AI Revolution - Paving for Innovation and Efficiency in the world of M&E: Artificial Intelligence (AI) is fundamentally transforming the Media & Entertainment (M&E) landscape, poised to inject an impressive Rs.450 billion into Indias M&E sector by 202715. This surge in AI adoption signifies more than just financial growth; it signifies a pivotal shift in content creation, consumption, and innovation strategies.
The time is here when AI seamlessly integrates with human creativity, amplifying rather than replacing it. This symbiosis not only drives efficiencies in workflows but also enhances the impact of creative outcomes. From producing captivating stories to crafting immersive videos and music and breath-taking visual effects, AI serves as a catalyst for innovation across the entire M&E value chain.
The pace of innovation is remarkable, with technologies like virtual production and machine learning becoming practical tools for studios to streamline processes and accelerate idea realization. Visionary companies like Open.AI, Meta and technology start-ups are leading this charge, showcasing transformative AI applications.
Investments in AI are witnessing substantial growth across various sectors, with major players committing significant resources to develop AI technologies and the necessary hardware that drives AI-driven innovations. This trend is not limited to big-tech companies but extends to news and media organizations, which are actively embracing AI for a wide range of initiatives. These initiatives include deploying AI anchors for news delivery, integrating chatbots for more interactive user experiences, and implementing automated tools for content rewriting, text-to-audio/video conversion, and text-to-image generation, thereby streamlining the production of multimedia content. Moreover, the advancement of Language Models (LLMs) has empowered news organizations to tailor information specifically to their audiences, offering personalized news headlines and addressing individual queries in a more customized manner. Your Company is at the forefront of AI adoption with several successful industry-first initiatives including AI-Anchor, AI- collaborated audio/visual production and AI-enabled back-office newsroom operations, among many others.
As AI continues to evolve rapidly, organizations must strike a balance between harnessing AIs efficiency gains and preserving the human touch that defines compelling media experiences. This journey of innovation, collaboration, and adaptation promises to redefine the future of Media & Entertainment, creating a dynamic landscape where AI-driven efficiencies fuel creative endeavours, resulting in richer, more engaging content for audiences worldwide.
Digital Dominance in Indian Advertising: The trend of digital advertising overtaking television advertising marks a significant shift in the media landscape, especially for large news publishers. In India, where advertising has reached Rs.1.1 trillion, with digital media claiming 52% of the total share and traditional media standing at 48%, this shift is particularly notable. Projections indicating a further increase to 57% by 2026 underscore the dominance of digital platforms in the advertising space16.
For news publishers, this trend brings both opportunities and challenges. On one hand, digital advertising allows for precise audience targeting based on demographics, interests, and behaviour. This level of targeting enables news publishers to reach a broader audience without significant additional costs, maximizing the impact of their advertising campaigns. Moreover, digital advertising generates valuable user data that publishers can leverage for targeted advertising, audience insights, and potential data monetization partnerships. Customized advertising solutions such as interactive ads, native advertising, and sponsored content further enhance the value proposition for advertisers and publishers alike.
By leveraging these opportunities, news publishers can expand their revenue streams, better serve advertisers, and strengthen their position in the evolving media landscape. However, the rise of digital advertising also brings challenges, particularly concerning misleading ads, privacy, ad-fraud and security. These concerns have prompted the government to introduce new advertising regulations aimed at ensuring disclosures and accountability across platforms. Upholding transparency and combatting misleading advertisements are crucial steps in fostering a trustworthy advertising environment while supporting the continued growth and evolution of Indias media landscape.
In contrast, large tech platforms often benefit disproportionately from the digital advertising boom due to their vast user bases, sophisticated targeting capabilities, and data monetization strategies. This can create a competitive imbalance, with platforms capturing a significant share of digital ad spending. For news publishers, navigating this landscape requires a strategic approach that leverages their unique strengths in content creation, audience engagement, and trusted brand reputation while also embracing digital innovations and partnerships to remain competitive in the digital advertising ecosystem.
PRODUCT-WISE PERFORMANCE AND INDUSTRY OUTLOOK
TELEVISION
Despite the rise of digital media, television remains a cornerstone in Indian households. In 2023, there was a 1% year-on-year increase in TV screens, totalling 18.2 crores. Additionally, TV consumption grew by 2% from 2022, with both Hindi-speaking and southern regions seeing a slight uptick in viewership17. In 2023, the count of television channels rose to 89918, with 61% being free-to-air channels19 and 44% dedicated to news content20. DD FreeDish maintained its position as the largest distribution platform in India21.
According to BARC, affluent audiences decreased by 1%, while lower socio-economic classes increased by 4% compared to 2022, contributing to overall viewership growth. There was a 15% decline in the 15-to-21-year age group, reflecting a shift towards online digital platforms22. Among regional languages, English and Bangla experienced the most significant declines in viewership23.
Regarding content on TV, approximately 76% of content was produced for general entertainment channels and movies, a ratio that has remained stable for six years24. Genres like infotainment and music have decreased as consumption has shifted to digital platforms. Sports viewership also increased by 26%, driven by marquee events like the Cricket World Cup, however, non-cricket sports saw a 39% decline25.
Although news viewership grew by 11% in 2023, it remains over 30% lower than 2020 levels. News consumption has become multi-platform, with digital news reaching 45.6 crores as of December 2023, diminishing the necessity for television visits26. This led to innovations like increased focus on local news, non-news content, and specials and events.
In terms of revenue, distribution income reversed its falling trend in 2023 as television subscription revenues in India rose by 2% in 2023 despite a decline of 20 lakh Pay TV homes to 11.8 crores. This was due to a 4% increase in TV subscription ARPUs. On the other hand, free television remained steady at an estimated 4.5 crore subscribers on the back of less expensive television sets, economic issues, and as an add-on connection to pay TV27.
24 BARC I India 2+ U+R Weekly Average AMARs.000s wk1-wk52 I #Reinvent: EY-FICCI Media and Entertainment Outlook, March 2024
25 BARC I India 2+ U+R Weekly Average AMARs.000s wk1-wk52 I #Reinvent: EY-FICCI Media and Entertainment Outlook, March 2024
26 Comscore I #Reinvent: EY-FICCI Media and Entertainment Outlook, March 2024
27 Television subscriptions in millions I Industry discussions, billing reports, TRAI data, EY analysis I #Reinvent: EY-FICCI Media and Entertainment Outlook, March 2024
Connected TVs have a larger reach than individual pay platforms, with 3 to 3.5 crores of unique sets connecting to the internet monthly, of which an estimated 1.9 crores connect weekly28. This has led to advertising services on smart TV platforms targeting the top-tier audience.
The growth of connected smart TV sets is expected to continue, reaching 4.0 crores by 2026, driven by wired broadband and 5G connections29.
In the future, we can see a clear segmentation of the market into Pay TV, Free TV, and Connected TV, with each segment representing a substantial share.
a RADIO
The radio segment in India experienced a 10% revenue growth in 2023, totalling Rs.2,300 crores. However, this figure represents only 73% of the revenues from 2019. Currently, there are 1,313 operational radio stations across the country, including 446 community radio stations. Notably, radio ad volumes surged by 19% compared to the previous year30.
Radio companies are strategically focusing on regional shows, incorporating innovative and multimedia content, which now constitutes 20% to 25% of total revenues, indicating a shift in revenue streams31. Despite these positive trends, the lack of unified and independent third-party monitoring remains a critical industry challenge.
Looking ahead, the radio segment is projected to rebound, with revenues expected to reach Rs.2,700 crores by 2026, with approximately a fourth attributed to non-FCT revenues32. However, challenges persist, including restricted radio measurement in specific cities, uncertainty surrounding the implementation of digital radio, and the absence of FM radio receivers/ chipsets in top-end smartphones.
Despite these obstacles, the radio industry anticipates continued recovery and revenue growth, driven by the SME and retail advertiser segment. This growth is fuelled by the ease of attributing spending to sales in these sectors. Additionally, the launch of new brands, particularly in FMCG, durables, and electronics, is expected to contribute significantly to advertising revenues, leveraging the effectiveness of retail ad media in generating brand awareness.
a DIGITAL
Digital media in India experienced a 15% growth in 2023, with advertising revenue increasing from Rs.49,900 crores in 2022 to Rs.57,600 crores in 2023. Subscription revenue also saw growth, rising from 7,200 crores in 2022 to 7,800 crores in 2023. The total revenue for the industry reached 65,400 crores in 2023, with a projected increase to 95,500 crores by 202633.
In terms of consumption trends, Indians spent an average of 4.8 hours per day on their phones in 2023, a 9% increase from 202034. Despite leading in phone usage globally, India did not rank in the top 20 revenue-generating markets of 2023, indicating a gap between usage and revenue generation35.
Social media accounted for 50% of phone usage in India, with another 28% dedicated to entertainment and news. Average monthly mobile data usage per smartphone increased by 24% to 31GB in 2023 and is expected to reach 75GB by 2029. This growth is fuelled by the adoption of 4G and 5G technologies, which now constitute 85% of total subscriptions, up from 74% in 202236.
Online video viewership grew by 7% in 2023, reaching 56.3 crores, or 98% of smartphone owners and wired broadband subscribers37. Original content production for streaming platforms remained stable compared to 2022, with a notable increase in regional language content. Music streaming saw a slight decline in users but an increase in paid subscriptions. The introduction of cricket as a free ad-supported streaming television (FAST) product on mobile phones resulted in a significant supply of inventory due to increased viewership. This move also enabled better segmentation of mobile and connected TV audiences for more precise ad targeting.
The online news audience in 2023 was 45.6 crores, approximately 32% of Indias population38. Mobile devices dominated news consumption, constituting 86% of total reach. Notably, 80% of news consumption occurred on the web, with only 14% through apps39. Social media emerged as the primary source of news for 79% of online news consumers, highlighting the need for vigilance against fake news and misinformation40. Hyperlocal news services gained traction, particularly among users of Indian languages like Hindi and Gujarati. Monetization remains a challenge, with ad revenues only reaching 1,900 crores and subscriptions generating around 200 crores41, primarily driven by premium and exclusive content.
The rise of generative AI and deepfake technologies underscores the importance of self-regulation to combat fake news effectively.
a ADVERTISING
In 2023, the Indian advertising industry experienced robust growth, expanding by 7% to reach a market size of Rs.1,13,500 crores42. This growth was primarily driven by new media, which contributed 105% to the total ad growth, while traditional media (excluding television) added another 23%. However, television advertising saw a decline in growth by 28%, attributed to a decrease in sports advertising compared to 202243. Notably, new media surpassed traditional media in advertising share, accounting for 52% of total advertising, marking a significant shift in the industry landscape44.
Looking ahead, a continued upward trend in advertising is projected with a forecasted 10% growth in 2024 and a healthy 9% compound annual growth rate (CAGR) expected until 202645. Digital media is anticipated to lead this growth at 14%, outpacing traditional medias growth rate of 5%46.
TV Advertising: Despite Television remaining the most effective mass medium in terms of ad rates, TV advertising revenue fell by 6.5% in 2023, with ad volumes declining by 2.6%47. FMCG contributed 47% of ad spends on TV, experiencing an increase in spending during 2023 and contributing to 73% of the absolute change48. Conversely, the e-commerce, education, and telecom sectors significantly reduced their spending on television.
TAM AdEX data reveals that GEC channels captured 30% of ad volumes despite commanding a 50% share of viewership. On the other hand, news and music channels managed 37% of ad volumes with only a 10% share of viewership49.
Looking ahead, a 3.6% annual growth (CAGR) in television advertising is projected until 202650. This growth is expected to be driven by a resurgence in television advertising, particularly in news channels, due to the upcoming general elections in 2024. Additionally, regional channels are expected to perform strongly, maintaining firm ad rates due to the ongoing preference for local language content.
Radio Advertising: The radio advertising sector experienced a noteworthy upswing of 19% in 2023 compared to the previous year, marked by a more balanced distribution of advertisement volumes throughout the year51. This growth encompassed a diverse range of sectors, with over 426 categories represented by 10,000+ advertisers and an impressive array of over 13,615 brands actively promoting themselves on radio platforms during 202352.
TAM AdEX data indicates a particularly robust increase of 22% in the retail and local advertiser segment, driven by the resurgence of the retail industry in 2023 and the escalating costs associated with digital advertising rates, especially at the local and city-centric levels53.
Looking ahead, a continued recovery in radio revenues is forecasted, albeit with sustained pressure on ad rates. This recovery trajectory is anticipated to be buoyed by the SME and retail advertiser segments, which find radio advertising advantageous due to its direct impact on sales attribution. Additionally, the introduction of numerous new and challenger brands will further stimulate growth, as radio proves to be an effective medium for generating brand awareness.
Furthermore, non-FCT (free commercial time) revenues are poised to play an increasingly significant role, as radio companies diversify into brand extensions that tap into opportunities for community engagement, content creation, influencer collaborations, and the burgeoning realm of short-form video content.
Digital Advertising: Digital advertising has surpassed traditional advertising for the first time this year, with a growth of 15% to reach Rs.57,600 crores, constituting 51% of total advertising revenues54. This includes advertising by SMEs and long-tail advertisers exceeding Rs.20,000 crores, along with advertising earned by e-commerce platforms amounting to Rs.8,600 crores. Factors such as the growth of 5G, the rising per capita income of Indians, and the expanding SME advertiser base are driving digital ad spending55.
Large ad platforms report that there are now between 8 lakhs to 10 lakhs of small and medium enterprises advertising on them to generate business in India and abroad, with spending as low as Rs.20,000 per year56. Two categories allocated over 50% of their total ad spends to digital, while six categories allocated over 30%. All categories increased spending on digital media in 2023 compared to 2022. FMCG remains the leading contributor to the digital advertising pie, followed by e-commerce57.
The content distribution of digital news via social media was impacted by Metas shutdown of the Insta articles feature, potentially leading to a 50% dip in online traffic to news publishers platforms58. Frequent algorithm changes by large platforms resulted in news
publishers experiencing lower ad CPMs, necessitating a greater reliance on direct deals.
a DIGITAL INFRASTRUCTURE
The telecommunications landscape in India saw notable growth in 2023, with total subscriptions reaching 119 crores by December, up from 117 crores in the previous year59. Urban subscriptions accounted for 56%, while rural subscriptions made up 44% of this total60. However, tele density stands at 85%, with a significant disparity between urban areas at 133% and rural areas at 58%61.
According to the Ericsson Mobility Report from November 2023, 4G remains the dominant subscription type at 74%, driving connectivity and data growth. The adoption of 5G subscriptions saw substantial growth from 2% in 2022 to 11% in 2023, while 12% of subscriptions still utilize 2G or 3G technology62. The average data traffic per smartphone in India is the highest globally.
Internet penetration in India grew by 8% in 2023, with 79% of telecom subscriptions accessing the Internet, up from 74% in December 2022. Urban and rural Internet subscriptions saw growth rates of 7% and 10%, respectively, in 202363. A report by Ookla in February 2024 reveals that Indian consumers can expect median mobile internet speeds of 100.6 Mbps via cellular networks and median fixed internet speeds of 62.07 Mbps64. Indias low data charges for 1GB of mobile data are a key driver for the growing telecom internet user base, fostering growth in online entertainment, audio streaming, gaming, and social media.
Despite rising phone prices, smartphone users increased to 57.4 crores in 2023 from 53.8 crores in 2022, representing around 40% penetration of Indias population. Estimates by EY project user numbers to reach 64 crores by 202665.
The growth in wired broadband connections, 5G wireless connections, and major sports events like the ICC Cricket World Cup, IPL, and FIFA World Cup with advanced engagement features contributed to the sale of connected TVs. In 2023, over 90% of all television sets sold were smart TVs. Smart-connected TVs are expected to exceed 4 crore by 2026, growing from 1.9 crore66.
DISTRIBUTION AND IMPACT ON BROADCASTERS
As on 31st December 2023, there are 998 MSOs registered with MIB. As per the data reported by MSOs and HITS operators, as of 31st December 2023, there are 11 MSOs and 1 HITS operator which have a subscriber base greater than 10 lakhs67. GTPL Hathway has the largest subscriber base followed by Siti Networks Ltd and Hathway Digital Networks.
A total of approximately 920 private satellite TV channels have been permitted by the Ministry of Information and Broadcasting (MIB) for uplinking only/ downlinking only/both uplinking & downlinking. Out of 920 permitted satellite TV channels, 910 channels are available for downlinking in India68.
As per the report published by broadcasters in pursuance of the Tariff Order dated 3rd March 2017 as amended, out of 910 permitted satellite TV channels which are available for downlinking in India, there are 363 satellite pay TV channels as of 31st December 2023. Out of 363 pay channels, 259 are SD satellite pay TV channels and 104 are HD satellite pay TV channels.
Pay DTH has attained a total active subscriber base of around 6.35 crore. This is in addition to the subscribers of the DD Free Dish (free DTH services of Doordarshan). The total active subscriber base has decreased from 6.41 crore in September 2023 to 6.35 crore in December 202369.
M/s Tata Play Limited is the market leader with 32.71% market share of total net pay active DTH subscribers followed by M/s Bharti Telemedia Ltd. with 27.76% as on 31st March, 202370.
IPTV
As per information provided by the Ministry of Information and Broadcasting (MIB), as of 31st December 2023, there are 28 IPTV Operators.
The News Genre
Advertising in the news genre remains elevated, surpassing pre-pandemic levels with a 6% growth in 2023 over 2019. Hindi news claimed the top spot, accounting for over 15% of the ad volumes in the news genre during both 2023 and 2022. In 2023, a drop of 8% in ad volumes was witnessed over 2022 and a growth of 6% as compared to 201971.
New Tariff Order (NTO 3.0)
Under new amendments to the tariff order, NTO 3.0, broadcasters were allowed by the Telecom Regulatory Authority of India (TRAI) to hike the price of channels that are part of a bouquet to Rs.19 from Rs.12 earlier.
TRAIs New Tariff Order (NTO 3.0), has been the bone of contention between broadcasters and the Cable TV industry ever since its announcement, may have allowed media companies to hike channel prices but, in hindsight, it seems they are losing subscribers ever since it was implemented in February this year.
DD FreeDish
Prasar Bharati, Indias public broadcaster, has successfully concluded its recent DD FreeDish e-auction with record revenue. The seven-day bidding war concluded with a remarkable 8% surge in total revenue, amounting to approximately Rs.1,157 crore, driven by the sale of 64 MPEG-2 slots.
Comparing the figures to the previous years, the growth trajectory is evident. Last year, Prasar Bharati raked in Rs.1,071 crores from similar e-auctions, marking a substantial 66% increase compared to 2022. In contrast, the revenue generated in 2022 stood at Rs.645 crores, reflecting a 12% decline from the Rs.734 crores garnered in 2021.
OPPORTUNITIES AND THREATS
a OPPORTUNITIES
Al-led efficiency and productivity advantage: The
Companys proactive adoption of AI technology within its newsroom has positioned it as an early innovator, leveraging innovation to enhance productivity and efficiency. Early results demonstrate its significant potential as a force multiplier in several key areas. Central to this is content generation, where AI algorithms are anticipated to not only analyze audience preferences and trending topics but also conceive innovative content ideas, optimize content and headlines for maximum impact, and autonomously craft basic articles or video scripts. This streamlined process is set to revolutionize editorial workflows, freeing up human resources for more strategic and creative pursuits, thereby fostering a culture of innovation and excellence.
Moreover, anticipated advancements in AIgenerated visuals and voiceovers are expected to elevate the visual appeal and storytelling quality of content, captivating audiences with immersive and engaging narratives. AI anchors are poised to take on mundane and repetitive tasks, allowing human anchors to focus on in-depth analysis and investigative reporting, thereby enriching the news narrative and driving deeper audience engagement.
Furthermore, AI-driven content distribution strategies leveraging advanced data analytics hold the promise of pinpointing optimal platforms and ideal engagement timings, leading to an exponential increase in reach and resonance. This targeted approach not only enhances audience engagement but also paves the way for personalized content delivery, thereby forging stronger connections and fostering long-term audience loyalty. In essence, by embracing AI technologies proactively, the Company is positioned to enhance agility, scalability, and cost-effectiveness, ensuring consistent delivery of compelling content and experiences to our audiences.
Unlocking revenue-scale in digital for high- potential brands: The Companys recent strategic focus on digital business is paving the way for a transformative impact on revenue generation. Through targeted efforts in focus brands across diverse digital platforms, we are primed to unlock significant revenue potential. A key element of this strategy is our emphasis on leveraging Search Engine Optimization (SEO) not just for traffic growth but also as a catalyst for pioneering new formats and innovative monetization strategies.
By optimizing content across our digital ecosystem, we are poised to significantly enhance visibility, attract precise audience segments, and drive deeper engagement. This approach not only maximizes the value of our current digital assets but also positions us to lead in exploring and leveraging emerging trends. As a result, we anticipate a substantial increase in revenue scale, solidifying our position as a frontrunner in the dynamic digital media landscape.
Along with the anticipated revenue growth, this embrace of digital transformation is also about ensuring sustained relevance and competitiveness in an ever-evolving media environment. By staying at the forefront of digital innovation, we are not only securing our future success but also setting the stage for continued leadership and impact in the years to come.
Focus on International reach and influence: Focus on strengthening our reach internationally is a strategic move for our news brand, acknowledging the growing demand for high-quality news content globally. With a vast global audience seeking reliable perspectives from Indian media, stepping into new markets presents a lucrative growth opportunity. Our goal is to broaden revenue sources, boost brand visibility, and connect with diverse audience segments.
By extending our reach beyond domestic borders, we not only tap into new revenue streams but also meet the global thirst for credible news and information. This expansion allows us to cater to the huge demand for diverse perspectives on a global scale, enhancing our reputation as a trusted news provider and fostering consumer trust and loyalty worldwide.
Moreover, building a strong presence in international markets positions us as a key player in the global media landscape. Our commitment to delivering culturally resonant content ensures that we cater to diverse preferences, driving growth and influence across continents while reinforcing our status as a formidable force in the industry.
Consolidation of technology and operations:
As our Company continues its growth trajectory, the consolidation of technology and operations emerges as a pivotal cornerstone of our future strategy. This consolidation effort involves integrating our digital infrastructure, optimizing workflows, and standardizing processes across our media ecosystem. By doing so, we not only enhance efficiency and reduce costs but also lay down a clear roadmap for innovation and future growth. This approach is not just about streamlining operations; its about fostering a culture of continuous improvement and adaptability in response to evolving market dynamics.
Our commitment to consolidation reflects our proactive approach to staying competitive, resilient, and value-conscious in an ever-changing digital landscape. Its not just about doing things right; its about doing the right things that drive sustainable value creation and long-term success for our organization and stakeholders.
Right-sizing of the business models: The Company has experienced rapid digital growth in the past, leading to the expansion of its brands and revenue streams. However, this trajectory has also introduced new cost structures and operational complexities. Committed to a value-oriented future, the Company prioritizes right-sizing its digital business model for lasting success. This strategic alignment harmonizes growth aspirations with operational efficiency, ensuring sustainability.
Balancing scalability and resource optimization enhances agility and accelerates investments in core value propositions. This approach creates an opportunity to foster responsible growth and fortify the foundation for delivering impactful content, driving meaningful audience engagement and longterm impact while maintaining financial prudence.
aTHREATS
High dependence on evolving policies and guidelines of large-tech platforms: News companies face a multifaceted challenge stemming from the ever-evolving algorithms, policies, and guidelines set by tech giants like Google and Meta. These platforms, with their immense reach and influence, dictate the visibility and accessibility of news content to a global audience. However, the continuous changes in their algorithms often result in fluctuations in traffic and engagement for news companies, making it difficult to predict and stabilize audience interactions.
Moreover, the continuous evolving of policies and guidelines regarding news content, such as factchecking standards and community guidelines, adds another layer of complexity for news organizations striving to maintain editorial independence while adhering to these platform requirements. This dynamic environment not only necessitates constant adaptation and optimization of content strategies but also raises concerns about the potential impact on the diversity and quality of news available to users. The Company aims to strike a balance between meeting platform standards, preserving journalistic integrity, and sustaining audience trust in an era dominated by tech-driven information dissemination.
AI-generated Deep Fake and Fake News: In todays media landscape, one of the most significant threats to a news Companys credibility arises from the proliferation of AI-generated deepfakes and fake news. These technologies have made it increasingly challenging to discern between authentic and manipulated content, undermining the trust that audiences place in journalistic integrity. Deepfakes, with their ability to create highly realistic but entirely fabricated audio and video content, can be used to spread misinformation at an unprecedented scale.
Similarly, AI-generated fake news articles can mimic the style and tone of legitimate reporting, making it difficult for readers to differentiate between what is real and what is fabricated. This threat erodes the credibility of news organizations ultimately weakening the foundation of informed public discourse.
Uncertain Copyright Ecosystem: Unclear copyright laws pose a significant threat to media companies, especially in todays digital age where usergenerated content (UGC) and social platforms play a crucial role in news reporting. Many media teams rely on such sources to enrich their content and provide timely updates to their audience. However, the challenge arises when copyright holders exploit these laws to demand exorbitant fees or restrict the use of content, often conflicting with fair use policies. This not only limits the diversity and authenticity of news coverage but also imposes financial burdens on media organizations, hindering their ability to deliver comprehensive and unbiased reporting.
Balancing the protection of intellectual property with the principles of fair use is essential to ensure a vibrant and informative media landscape.
Lowering Ad yields on third-party platforms:
The emergence of third-party platforms like YouTube and Facebook has transformed the news publishing landscape, providing unprecedented opportunities for content distribution and audience engagement. However, the cost of this exposure is steep, as these platforms compete with traditional media outlets for advertising revenue.
Like 2022, in 2023 as well we witnessed a decline in ad prices and yields for news and media publishers. Meta for the full year 2023, reported a 9% year-overyear decline for the average price per ad72. This downward trend poses a threat to the Company to the incumbent revenue streams and requires immediate action to counter the adverse impact on their business.
Stringent Privacy Regulations: The looming threat of restrictions on tracking cookies poses a significant challenge for news companies, impacting their ability to gather crucial audience insights and deliver personalized content effectively. These restrictions not only limit the tracking of user behaviour across websites but also hinder the creation of targeted advertising campaigns, which are a major source of revenue for many media organizations. Moreover, without granular data on user preferences and behaviours, media companies may struggle to tailor their content to meet audience expectations and preferences, potentially leading to a decline in reader engagement and loyalty.
As the digital landscape evolves, the Company is navigating these challenges by exploring alternative data collection and enrichment methods and adopting innovative strategies to maintain relevance and sustain its business models.
Sustained Competitive Intensity in Television: Thetelevision news landscape in India is characterized by a sustained intensity of competitive pressure, with every channel vying for viewer attention and market share. Numerous regional and national players, both incumbent and new entrants, are constantly innovating their content formats, editorial strategies, and technological capabilities, turning the industry into a battleground of ideas and narratives. The quest for breaking news, exclusive interviews, and compelling storytelling has intensified, prompting channels to continue investing heavily in talent, production infrastructure, and digital integration. This competitive fervour is further fuelled by audience fragmentation, evolving viewer preferences, and the rise of digital media as a formidable competitor.
Consequently, news publishers face the dual challenge of retaining traditional television audiences while also expanding their digital footprint to engage with an increasingly tech-savvy and discerning audience.
The Company is continuously monitoring the various threats which can hamper growth and are taking appropriate and effective steps in this regard.
RISKS AND CONCERNS
The Companys enterprise risk management framework enables the achievement of the Companys strategic objectives by managing risks. The Risk Management Committee and the Board of Directors periodically review various external and internal business risks and their mitigation plans.
Our risk management framework follows a structured and comprehensive approach which allows us to periodically identify, monitor and mitigate these risks. This system provides assurance to the management that key risks are being properly identified and effectively managed in the Company.
The risks are identified and monitored as a continuous process. The management ensures to make use of the best available technology to strengthen controls and minimise manual intervention in business processes that help the organisation in mitigating the operational and reporting risks.
Please refer to the section ‘Risk Management & Opportunities for details of identified risks and their mitigation plan.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established comprehensive systems, policies, and procedures to ensure the business is conducted in an orderly and efficient manner. These systems ensure adherence to company policies, safeguard assets against loss and misuse, prevent and detect fraud and errors, maintain complete and reliable accounting records, and prepare timely and reliable financial information. Periodic reviews of these controls are also conducted.
Our internal control systems consist of the following main elements:
- Delegation of authority
- Standard Operating Procedures & Policies
- Effective IT systems aligned with business needs
- An internal audit framework
- An ethics framework
- Adequate segregation of duties
All documented controls are in place for business processes and IT general controls. These essential controls are regularly and rigorously tested to ensure ongoing effectiveness. We have prepared numerous Standard Operating Procedures (SOPs) for all functions, including procurement, capital expenditure, human resources, sales, finance and treasury etc.
Our Internal Financial Control framework aligns with regulatory requirements, assuring the Audit Committee and the Board of the adequacy and effectiveness of Internal Controls over Financial Reporting (ICOFR).
Our robust internal control systems have demonstrated efficacy and have not undergone significant changes during the year. These systems are subject to periodic reviews, and the statutory auditors further strengthen compliance with ICOFR. The Audit Committee annually reviews the effectiveness of the internal financial controls to ensure the robustness of the deployed systems/frameworks.
AUDIT COMMITTEE
L Sets guidelines and scope for internal audit
Quarterly reviews of internal audit findings/ recommendations
INTERNAL AUDIT FUNCTION
Objectives
The Companys internal control is designed to:
• Safeguard the companys assets and identify liabilities
• Ensure that transactions are properly recorded and authorised
• Ensure maintenance of proper records and processes that facilitate relevant and reliable information
• Ensure compliance with applicable laws and regulations
Team Composition and Activities
Companys internal audit process is handled by one of the leading audit firms, who reports to Audit Committee.
Apart from this, we have a team of experienced professional consisting chartered accountants and company secretaries.
Both the teams conduct extensive exercises around the year to:
• Cover key aspects of the business activity
• Ensure the accuracy, reliability and consistency of records, systems and procedures
Other control functions
• Risk Management Function
• Independent Statutory Audit
• Compliance management and monitoring system etc.
OUTLOOK AND PERFORMANCE
a TELEVISION
Your Company has been continuously focusing on sustaining and enhancing its growth trajectory with the channels from the network including Aaj Tak, Aaj Tak HD, India Today TV and Good News Today. All four network channels have a unique offering and are gaining market share and coverage with credibility from audiences as well as advertisers. The network reached 54.1 crores viewers in FY 2023-24, with an average of 24.8 crores viewers per month73.
We have consistently strived to uphold unmatched reach and viewership for our flagship news channel Aaj Tak, widely favoured by our viewers as their foremost preference in news. Aaj Tak maintained a pole position in FY 2023-24 amassing a staggering 100 crore gross impressions over the period amongst affluent audience group74.
In FY 2023-24 the nation made an indelible impact on the global arena with many a news events like Chandrayaan 3, Indias third lunar exploration mission, first G20 Summit in India that left Indian hearts swell with pride.
Aaj Tak remained at the forefront throughout this momentous year, reporting each event which encapsulated the very essence of Indias unmatched journey of progress and excellence with unparalleled dedication and insightful commentary, capturing the essence of each moment with unmatched precision and passion.
A highly contested Karnataka Elections were held in May 2023. India Today Groups Exit Poll often deemed as the exact poll was the only one predicting the correct margin of Congresss resounding victory in the state. As a custom, Aaj Tak was the undisputed #1 Hindi news channel during the key counting hours of the Karnataka Elections75.
The new parliament was inaugurated by Honourable Prime Minister Narendra Modi - Aaj Tak was the #1 Hindi news channel on the day during the coverage76.
India created History on 23rd August 2023 when Chandrayaan 3 became the first and only space mission to land successfully on the southern node of the moon. India watched this event with pride on Aaj Tak which relentlessly covered this event and was the #1 Hindi News channel with a wide margin and market share77.
Shortly, India again attained remarkable achievement by hosting the 2-day G20 summit attended by world leaders. As always, Aaj Tak untiringly presented the event from the Bharat Mandapam and was the most-watched Hindi News channel during coverage78. 2023 concluded with the most awaited mega 5 State Elections of Rajasthan, MP, Chhattisgarh, Mizoram and Telangana. Aaj Tak was a clear leader on the much-awaited counting day. It did not end here as Aaj Tak continued to lead during the highly anticipated and thrilling CM announcement in Chhattisgarh, MP and Rajasthan79Rs.82.
A monumental, once-in-a-lifetime event - The consecration of the idol of Ram Lalla in Ayodhya by Honourable Prime Minister Modi was held on 22nd January 2024. Keeping with tradition Aaj Tak provided comprehensive on-ground coverage. During the consecration of the idol of Ram Lalla at Ayodhya, Aaj Tak was the most-watched Indian channel amongst all TV channels in India83.
India Today Groups Marquee Event - The India Today Conclave 2024 returned in March 2024 with the theme of "Brand Bharat". The 2-day event was addressed by prominent figures from the Indian business, sports and political fraternities and was concluded by the Honourable Prime Minister Narendra Modi in a speech which happened to be his first address post announcement of the Lok Sabha Election Dates. The event along with pre and postprogramming reached out to 3.65 crore Audiences across India84.
The year also marked many news events on the international stage such as the breakout of the Israel- Palestine war. Aaj Tak was at the forefront with our reporters being one of the first to provide coverage from the Gaza Border, often risking their lives in this brave-heart mission to provide uninterrupted live updates from the war zone.
Away, from regular news and into the world of sports, Aaj Tak was one of the few channels to have had dedicated programming covering Indias historic run to the finals of the 50 over Mens World Cup. The Channel achieved peerless leadership during the Post Match Coverage of many of Indias victories including the Thumping Win over New Zealand in the Semi Finals85.
The year also had the tragic train accident in Balasore which led to the loss of many lives, as the nation mourned the tragedy, it trusted Aaj Tak as its Number #1 source of continuous on-ground updates of the distressed event86.
Our new Hindi News Channel - "Good News Today" continued to make progressive strides in the genre. It
had the 2nd Highest Cume reach amongst Hindi news channels for this FY in Free network and in terms of viewership was ahead of the likes of ABP News, News Nation and DD News8788.
Our Marquee English News Channel - "India Today Television" continued to dominate the genre on critical news and events such as the Republic Day Parade, the Counting of Karnataka Assembly Elections and the consecration of the idol of Ram Lalla in Ayodhya89Rs.91.
Crossing over 6 crore Viewers, Aaj Tak HD had the highest Cume Reach amongst all HD Channels in India at an overall level92.
a RADIO
Your Company operates Rs.104.8 Ishq FM, renowned as ‘Indias only Romantic Radio Station. Currently broadcasting in the top three metro cities of Delhi, Mumbai, and Kolkata, Ishq FM has carved a niche for itself with its exceptional music quality and consistent sound.
Ishq FM is lauded by both listeners and industry experts for delivering an unparalleled listening experience. Its romantic music repertoire and innovative soundscape captivate audiences, providing an immersive entertainment journey. Radio Jockeys ("RJs") at Ishq FM curate emotionally rich content, blending humour and celebrity interviews to amplify the entertainment quotient for listeners.
Ishq FMs launch of the Consumer Ticketing Event Vertical marked a significant milestone for the station, signalling a strategic expansion into consumer engagement beyond traditional broadcasting. The initiative saw the successful hosting of four Grand Concerts featuring top-tier artists such as Sonu Nigam, Sunidhi Chauhan, and Shankar Mahadevan in major cities. This move not only garnered massive success in terms of ticket sales but also significantly enhanced brand engagement and visibility within the entertainment industry.
The stations proactive approach to social media yielded remarkable results, with its social media presence experiencing a surge and reaching approximately 2 crore accounts across platforms like Instagram & Facebook93. This heightened digital footprint played a crucial role in fostering deeper connections with the audience, amplifying brand awareness, and facilitating interactive engagements.
In addition to its successful event vertical launch, Ishq FM also made notable strides in talent acquisition and content diversification. The introduction of popular RJs in Delhi & Kolkata, along with the unveiling of exciting new shows, added fresh dynamics to the stations programming line-up. The ‘Rang De Blue campaign launched during the Cricket World Cup resonated strongly with listeners, offering engaging contests and exclusive giveaways such as official fan jerseys, further solidifying Ishq FMs appeal among its audience.
Further showcasing its commitment to offering diverse and engaging content, Ishq FM expanded its content portfolio with initiatives like ‘The Winning Captains podcast series and the revival of signature events such as the Ishq Music Awards, Diwali Gift Stock Exchange, and Azaadi Kiraye Se. These endeavours not only catered to varied listener interests but also reinforced the stations position as a comprehensive entertainment platform catering to a wide range of audience preferences.
Embracing technological advancements, Ishq FM ventured into AI integration with the introduction of an AI segment featuring India Today Groups AI anchor Sana. This innovative addition provided listeners with regular updates on tech trends and cricket news, enhancing the overall listening experience and showcasing the stations commitment to staying at the forefront of broadcasting innovation.
a DIGITAL
Your Company maintains its unchallenged supremacy as the leader in CTV video views, boasting a remarkable 66% surge in FY 2023-24. Furthermore, it has reclaimed its top position in total minutes, exhibiting an impressive 72% growth compared to FY 2022-2394.
Your Company saw a significant 31% increase in VMX reach and a notable 28% growth in VMX video views. Additionally, it has reclaimed the top spot in total minutes spent by users on VMX for the second half of FY 2023-2495.
Aaj Tak remains the most followed News channel on YouTube and the only News channel with a Custom button in the world. Aaj Taks dominance extends to the newly launched WhatsApp channel, firmly establishing itself as the unrivalled leader in news consumption on the platform, boasting a staggering subscriber base of 2.02 crore96.
Your Company is driving rapid growth through its digital-first initiatives, unwaveringly dedicated to developing, evaluating, engaging, and monetizing exclusive content crafted by Indias esteemed editorial team.
Aajtak.in stands as a beacon of digital news innovation, constantly pushing boundaries with fresh formats and cutting-edge technologies. Bolstered by a team of acclaimed and most followed journalists on social platforms, Aaj Tak consistently delivers top- notch content that strikes a chord with the audience. The website remains the most searched news website in FY 2023-2497.
IndiaToday.in stands as one of Indias premier and highly regarded news websites, revered for its extensive coverage of current affairs spanning politics, business, sports, entertainment, and technology, both domestically and internationally. In addition to its news and analysis offerings, IndiaToday.in provides a diverse array of content, including videos, podcasts, and live streams, ensuring readers stay abreast of the latest developments while delving into in-depth coverage of significant issues.
India Today continues to lead the pack as the most- watched video news publisher, captivating audiences with a whopping 11.5 crores minutes of content consumption per month in FY 2023-24 with 55% growth over FY 2022-2398.
Aaj Tak and India Today maintained their top positions throughout the year in the highly regarded Power Rankings by Comscore Social, which assess total engagements across social media platforms like Facebook, Instagram, and X (formerly known as Twitter). This underscores the networks unwavering commitment to delivering news with precision and impartiality. It stands as a testament to the viewers trust in your Company99100.
Aaj Tak and India Today both were No.1 among their respective set of competition on the counting day of highly contested Karnataka elections and 4 state assembly elections held in FY 2023- 24101102.
A landmark moment in FY was the Consecration of the idol of Ram Lalla in Ayodhya by the Honourable Prime Minister. Both Aaj Tak and India Today dominated their respective genres during this event. Aaj Tak achieved a milestone with 18 lakhs concurrent users on live stream on YouTube103.
Business Today, a prominent player in Indias business news arena, has experienced a remarkable 86% increase in unique visitors among all peers for MMX Mobile Metrix in FY 2023-24 vs FY 2022-23104. Business Today was the Number #1 in Facebook Video Views, Actions, and Likes in March 2024105.
FY 2023-24 proved to be pivotal for news viewers across genres, both domestically and internationally, especially on digital platforms. Key events such as the Karnataka Assembly elections, the inauguration of the new Parliament building, Chandrayaan-3s successful landing on the southern node of the moon, Indias first-time hosting of the 2-day G20 summit, 5 state Assembly elections, and the historic Consecration of the idol of Ram Lalla in Ayodhya captured the attention of audiences worldwide.
Throughout the year, the Company maintained its steadfast commitment to meticulous reporting, ensuring comprehensive coverage of each event that highlighted Indias unparalleled journey of progress and excellence.
a DIGITAL FIRST
The Company has established a strong foothold in the digital-first news landscape with its two flagship platforms, Taks and The Lallantop, each catering to distinct linguistic and content preferences.
Tak set of channels embodies the philosophy of ‘Aapki Khabar, Aapke Liye, Aapke Time Par, Aapki Bhasha Main, offering a diverse portfolio comprising 22 digital-first channels spanning across 10 content genres and five languages. On the other hand, The Lallantop stands out for its delivery of news in Hindi, employing an engaging narrative format that resonates with its audience. This approach has not only set new standards in terms of video views and subscriptions but has also cultivated a strong relationship with the audience.
Both Taks and The Lallantop adopt a digital-first strategy, commanding a formidable presence across various social media platforms.
As of March 2024, the Companys digital-first channels boast a YouTube subscriber base of 9.9 crore and have amassed an impressive 2,162 crores video views across social media platforms. Among the top five channels in terms of subscription growth, Mumbai Tak and UP Tak have witnessed subscriber growth of 66%, and 40% respectively. On the other hand, Bihar Tak and Crime Tak have seen a 25% jump, followed by Astro Tak with 23% subscriber growth in FY 202324106.
The Lallantop YouTube channel has also experienced substantial growth, accruing 0.44 crore new subscribers, totalling 2.85 crore subscribers. Additionally, the channel has garnered 333 crores views and a watch time of 18.3 crores hours. Taks YouTube channels have also witnessed a significant growth in video views. Haryana Tak had the highest growth with 229% increase in video views. Dilli Tak & Kisan Tak registered a 164% jump, followed by Karnataka Tak & Mumbai Tak with 133% and 77% increase in video views for FY 2023-24107.
Both the platforms - Taks & The Lallantop have demonstrated a cumulative reach of more than 32 crore users and 100+ crore page views across all websites from April 2023 to March 2024, underscoring its extensive audience penetration108.
In FY 2023-24, both, Taks & The Lallantop received several awards and recognition. Lallantop received awards for Best Current Affairs Programme (Hindi), Best Anchor (Hindi), Best Digital Media News Microsite, and Best Coverage in Food & Beverages along with two awards for Best Talk Show (Hindi). For the Tak platform, Crime Tak bagged the Best In-depth Series award whereas Shams Tahir Khan won the Best Anchor (Hindi) award. UP Tak received awards for the Best Media News Channel & Best Microsite (regional channel). Biz Tak, on the other hand, got the award for Best Business programming and Sahitya Tak received the award for Best Show Identity (Hindi). Mumbai Tak got the Best Microsite (Western Region) award, whereas Sports Tak got the award for the Best Talk Show (Hindi) and Vikrant Gupta received the Best Anchor (Hindi).
Furthermore, the Company has successfully organized on-ground brand shows such as Kisan Tak Aam Sabha. Strengthening the regional presence, onground shows like UP Tak Utsav and Chhattisgarh Tak Baithak, were also organised.
GROUP INFORMATION
Living Media India Limited is the holding Company of T.V. Today Network Limited, which is primarily engaged in the publishing of magazines.
FINANCIAL OVERVIEW
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
A brief analysis of the Companys financial position and performance for the year has been presented here.
a A. ANALYSIS OF FINANCIAL POSITION
1. Equity share capital
The Company has an authorised share capital of Rs.134 crores comprising of equity share capital and preference share capital of Rs.129 crores and Rs.5 crores respectively. The Company has only one class of issued share capital i.e. equity share capital of Rs.29.83 crores divided into 5,96,68,615 equity shares of Rs.5 each. There has been no change in the share capital during the year.
2. Other Equity
Other equity of the Company comprises securities premium, capital reserve, general reserve and retained earnings. Securities premium, capital reserve, and general reserve remained unchanged from the previous year at Rs.54.04 crores, (Rs.34.01) crores and Rs.79.32 crores respectively.
Retained earnings are increased to Rs.738.24 crores as of March 31,2024, compared to Rs.699.28 crores as of March 31,2023. The increase is on account of profit for the year and other comprehensive income offset by the final dividend of the FY 2022-23.
3. Property, plant and equipment Additions to gross block
During the year, additions to gross block were Rs.15.90 crores, comprising Rs.7.02 crores on plant and machinery, Rs.4.03 crores on computers and Rs.2.62 crores on office equipment, Rs.1.73 crores on vehicles, Rs.0.39 crore on furniture and fixtures, Rs.0.06 crore on building and Rs.0.05 crore on leasehold improvements.
Deletions to net block
During the year, we reduced Rs.0.21 crore from the net block on account of the disposal of various assets as against Rs.1.94 crores in the previous year.
Capital commitments
The Company has capital commitments of Rs.3.44 crores as of March 31, 2024, as compared to Rs.3.42
crores as of March 31, 2023. The commitments are primarily for plant and machinery and computers.
Capital work-in-progress
The Company has a capital work-in-progress of Rs.2.01 crores as of March 31,2024. All the projects are within the ageing of less than 1 year.
4. Investment Property
The net block of investment properties as of March 31,2024, is Rs.2.31 crores as compared to Rs.2.36 crores as of March 31, 2023. The decrease in net block is due to a depreciation of Rs.0.05 crore.
5. Intangible assets
Intangible assets largely comprise license fees for radio stations, production software and computer software etc.
The carrying value of intangible assets as of March 31, 2024, is Rs.24.85 crores, whereas on March 31, 2023, it was Rs.37.56 crores. There is an addition of Rs.2.95 crores to production software and computer software during the current year.
The Company has carried out a valuation of its radio business and the said valuation shows a decline of Rs.4.92 crores in the carrying amount of Radio licence fee. The reduction in the value of the Radio licence fee has been recorded in the year ended March 31,2024, as an exceptional item.
The Company has intangible assets under development of Rs.1.40 crores as of March 31,2024. All the projects are within the ageing of less than 1 year.
6. Right-of-use assets and lease liabilities
Ind AS 116 - "Leases" requires a lessee to recognise liabilities and right-of-use assets for all leases, unless it is a low-value/short-term lease. The Company has active lease arrangements for its registered office as well as various bureau offices.
The Company has right-of-use assets amounting to Rs.27.69 crores and Rs.28.96 crores as of March 31,2024 and March 31, 2023, respectively. Correspondingly, it has lease liabilities of Rs.33.95 crores and Rs.34.24 crores as of March 31, 2024 and March 31, 2023 respectively.
7. Financial assets
a. Investments
Investment majorly includes investment in 3 subsidiary companies. There is no movement in the investment except impairment of Rs.0.30 crore of investment in Mail Today Newspapers Private Limited during the current year.
Investments in equity instruments of subsidiaries are carried at cost as per Ind AS 27 - Separate financial statements.
b. Trade receivables
Trade receivables amounted to Rs.276.48 crores (including not due of Rs.131.02 crores) as of March 31, 2024, compared to Rs.212.26 crores (including not due of Rs.132.16 crores) as of March 31,2023, respectively.
The Company applies the simplified approach permitted by Ind AS 109 - Financial Instruments to assess any required allowances. The application of a simplified approach does not require the Company to track changes in credit risk of trade receivable. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.
c. Cash and cash equivalents, Other bank balances and Bank Deposits
| Particulars | As at March 31,2024 | As at March 31,2023 |
| Cash and bank balances | 33.17 | 13.07 |
| Bank deposits | 433.87 | 452.90 |
| Unpaid dividend accounts | 0.54 | 0.60 |
| Unspent corporate social responsibility account | 1.19 | 0.60 |
| Total | 468.77 | 467.17 |
The Company has a restricted balance of Rs.10.03 crores and Rs.9.31 crores as of March 31, 2024 and March 31, 2023, respectively. Restrictions are on account of bank deposits held as lien by the banks, unpaid dividend accounts and Unspent corporate social responsibility accounts. Other balances do not have any restriction of use. Lien on bank deposits are for the issue of bank guarantees which were issued through a non-fund-based credit limit as of March 31, 2024.
d. Loans
The company has outstanding loans given to employees of Rs.0.17 crore and Rs.0.37 crore as of March
31,2024, and March 31,2023, respectively. Out of the total loans of Rs.0.17 crore, Rs.0.16 crore is recoverable in 12 months.
e. Other financial assets excluding Bank deposits
The details of other financial assets are as follows:
| Particulars | As at March 31,2024 | As at March 31,2023 |
| Security deposits - non current | 9.33 | 8.08 |
| Security deposits - current | 0.26 | 0.27 |
| Claim recoverable - current | 0.07 | 0.09 |
| Total | 9.66 | 8.44 |
Security deposits are given to the vendors in the normal course of business.
8. Other assets
| Particulars | As at March 31,2024 | As at March 31,2023 |
| Capital advances | 1.67 | 2.24 |
| Prepaid expenses | 39.03 | 36.72 |
| Receivables against exchange of services | 4.29 | 1.18 |
| Unbilled Revenue | 18.69 | 14.10 |
| Balance with government authorities | 20.33 | 18.98 |
| Advances | 14.75 | 13.29 |
| Total | 98.76 | 86.51 |
The increase in other assets is majorly due to an increase in prepaid expenses, unbilled revenue and receivables against the exchange of services which are in the normal course of business.
9. Deferred tax assets
The Company has net deferred tax assets of Rs.19.94 crores and Rs.16.45 crores as of March 31,2024, and March 31,2023, respectively on account of temporary differences. Temporary differences majorly relate to allowances for doubtful debts and advances, expenses disallowed under section 40(a) of the Income Tax Act, 1961 and differential depreciation on property, plant and equipment as per the Income Tax Act, 1961 and the Companies Act, 2013.
10. Income tax assets/liabilities
The company has net current tax assets of Rs.56.11 crores and Rs.65.75 crores as of March 31, 2024 and March 31,2023, respectively.
11. Trade payables
The Company has trade payables amounting to Rs.99.82 crores and Rs.100.80 crores as of March 31, 2024 and March 31,2023, respectively.
12. Other financial liabilities
The details of other financial liabilities are as follows:
| Particulars | As at March 31,2024 | As at March 31,2023 |
| Security deposits | 0.65 | 0.68 |
| Unpaid dividend | 0.54 | 0.60 |
| Employee benefits payable | 28.12 | 30.52 |
| Capital creditors | 1.91 | 0.50 |
| Legal claim | 7.01 | 7.01 |
| Total | 38.23 | 39.31 |
Employee benefits payable majorly include managerial remuneration, accrued salaries and incentives to employees as a part of their annual compensation. The
decrease in employee benefit payable is majorly on account of the decrease in managerial remuneration.
13. Provisions
The Company has provision for gratuity and compensated absences of Rs.0.72 crore and Rs.13.08 crores respectively as of March 31, 2024. Gratuity and compensated absences were Rs.3.22 crores and Rs.11.04 crores respectively as of March 31, 2023. The provision for employee benefits is based on the actuarial valuation of leave and gratuity benefits.
14. Other liabilities
(Rs. in Crores)
| Particulars | As at March 31,2024 | As at March 31,2023 |
| Trade payables against exchange of services | 6.83 | 8.56 |
| Deferred revenue | 20.55 | 24.47 |
| Deferred government grant | 0.46 | 0.49 |
| Statutory dues payables (including provident fund and tax deducted at source) | 28.71 | 20.68 |
| Advances from customers | 17.58 | 2.43 |
| Total | 74.13 | 56.63 |
The balances mentioned above are in the regular course of business.
a B. ANALYSIS OF FINANCIAL PERFORMANCE
The function-wise classification of the Standalone Statement of Profit and Loss is as follows:
| Particulars | Year ended March 31, 2024 | % of revenue | Year ended March 31, 2023 | % of revenue | % Change |
| Revenue from operations | 952.09 | 100.00% | 878.23 | 100.00% | 8.41% |
| Production Cost | 122.80 | 12.90% | 107.57 | 12.25% | 14.16% |
| Employee benefits expense | 371.84 | 39.06% | 326.53 | 37.18% | 13.88% |
| Other expenses | 368.42 | 38.70% | 313.04 | 35.64% | 17.69% |
| EBITDA | 89.03 | 9.35% | 131.09 | 14.93% | -32.08% |
| Depreciation and amortisation expenses | 41.39 | 4.35% | 41.28 | 4.70% | 0.27% |
| Finance cost | 3.42 | 0.36% | 3.34 | 0.38% | 2.40% |
| Other Income | 37.76 | 3.97% | 43.56 | 4.96% | -13.31% |
| Profit before tax & exceptional items | 81.98 | 8.61% | 130.03 | 14.81% | -36.95% |
| Exceptional items | 4.92 | 0.52% | 9.85 | 1.12% | -50.05% |
| Profit before tax | 77.06 | 8.09% | 120.18 | 13.68% | -35.88% |
| Tax expense | 20.67 | 2.17% | 32.12 | 3.66% | -35.65% |
| Profit for the year | 56.39 | 5.92% | 88.06 | 10.03% | -35.96% |
1. Revenue from operations
Revenue from FY 2023-24 and FY 2022-23 are as follows:
| Particulars | Year ended March 31,2024 | Year ended March 31,2023 | % Change |
| Income from advertisement and other related operations | 826.56 | 794.82 | 3.99% |
| Subscription income | 99.42 | 63.97 | 55.42% |
| Others | 26.11 | 19.44 | 34.31% |
| Total | 952.09 | 878.23 | 8.41% |
The increase in income from advertisement and other related operations is largely attributed to an increase in the volume. Subscription income has witnessed a boost largely on account of an increase in TV Channels subscription prices. Other revenue mentioned above increased due to an increase in income from the exchange of services.
2. Expenses
| Particulars | Year ended March 31, 2024 | % of revenue | Year ended March 31, 2023 | % of revenue | % Change |
| Revenues | 952.09 | 100.00% | 878.23 | 100.00% | 8.41% |
| Expenses | |||||
| Production costs | 122.80 | 12.90% | 107.57 | 12.25% | 14.16% |
| Employee benefits expense | 371.84 | 39.06% | 326.53 | 37.18% | 13.88% |
| Other expenses | 368.42 | 38.70% | 313.04 | 35.64% | 17.69% |
| Total costs | 863.06 | 90.65 % | 747.14 | 85.07% | 15.52% |
On a standalone basis, expenses were 90.65% of revenues, compared to 85.07% during the previous year.
Production costs got increased by 14.16% in the FY 2023-24 compared to the financial year 2022-23. This is largely on account of an increase in Subscription expenses, Transmission Expenses, Content procurement expenses, Licence fees and other miscellaneous production expenses for organising more ground events this year.
Employee benefits expenses increased by 13.88% year-on-year basis. This increase is contributed by two factors largely; (i) on account of cyclical increments in compensation and; (ii) an increase in human resources for the expansion of existing business lines which mainly included digital operations.
Other expenses increased by 17.69% in the FY 2023-24 compared to the FY 2022-23. This is largely on account of an increase in Advertising, distribution and sales promotion expenses and Allowances for doubtful debts- trade receivables and advances.
3. EBITDA
The Earnings before Interest, Tax, Depreciation and Amortisation during the year was Rs.89.03 crores, representing 9.35% of revenues, compared to Rs.131.09 crores, representing 14.93% of revenues in the previous year. Such a decrease at the EBITDA level is due to an increase in production expenses, employee expenses and other expenses partially set off by an increase in revenue. EBITDA, as mentioned above, doesnt include other income.
4. Other income, finance cost and depreciation and amortisation expenses
Our other income and finance costs for FY 2023-24 and FY 2022-23 are as follows:
| Particulars | Year ended March 31, 2024 | Year ended March 31, 2023 | % Change |
| Other income | 37.76 | 43.56 | -13.31% |
| Finance costs | 3.42 | 3.34 | 2.40% |
| Depreciation and amortisation expenses | 41.39 | 41.28 | 0.27% |
Other income for FY 2023-24 primarily includes Interest income from Financial Assets of Rs.33.14 crores. The decrease in other income is due to a decrease in average bank deposits (on account of the distribution of a special interim dividend of approximately Rs.400 crores in February 2023) partially set off by an increase in the rate of interest on bank deposits.
Finance costs of the Company largely include interest on lease liabilities on account of Ind-AS 116 "Leases" and bank charges etc.
Depreciation and amortisation expenses have increased slightly i.e. by 0.27%, year-on-year basis, in line with additions to property, plant and equipment and Intangible assets.
5. Provision for tax
We have provided for our tax liability. The applicable Indian corporate statutory tax rate for both the years ended March 31 , 2024, and March 31 , 2023, is 25.168%.
| Particulars | Year ended March 31, 2024 | Year ended March 31, 2023 |
| Income tax expense (Rs. in Crores) | 20.67 | 32.12 |
6. Net profit after Tax
The Companys net profit decreased by 35.96% to Rs.56.39 crores for the year ended March 31, 2024, from Rs.88.06 crores in the previous year.
7. Other comprehensive income
Other comprehensive income comprises remeasurement gains on defined benefit plans, net of taxes.
KEY FINANCIAL RATIOS
As per SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.
The Company has identified the following ratios as key financial ratios:
| Ratio | Standalone | Consolidated | ||||
| FY 2023-24 | FY 2022-23 | % Change | FY 2023-24 | FY 2022-23 | % Change | |
| (i) Current Ratio (times) | 3.86 | 3.89 | -0.82% | 3.87 | 3.91 | -1.04% |
| (ii) Debt Equity Ratio (times) | 0.04 | 0.04 | -5.30% | 0.04 | 0.04 | -5.30% |
| (iii) Interest Coverage Ratio (times) | 24.97 | 39.93 | -37.47% | 24.97 | 39.99 | -37.56% |
| (iv) Debtors turnover (days) | 110.31 | 101.00 | 9.22% | 110.94 | 101.92 | 8.85% |
| (v) Operating Profit Margin (%) | 8.47% | 14.19% | -40.30% | 8.47% | 14.21% | -40.39% |
| (vi) Net Profit Margin (%) | 5.92% | 10.03% | -40.93% | 5.97% | 10.05% | -40.59% |
| (vii) Basic EPS (Rs.) | 9.45 | 14.76 | -35.98% | 9.45 | 14.79 | -36.11% |
| (viii) Basic EPS (excluding exceptional items) (Rs.) | 10.07 | 15.99 | -37.02% | 10.07 | 16.02 | -37.14% |
Ratios where there has been a significant change from FY 2022-23 to FY 2023-24.
• Interest Coverage Ratio
The decrease is largely on account of the downfall in profit for the year.
• Inventory Turnover
There is no inventory balance as of March 31,2024, March 31,2023 and March 31,2022. Further, there is no cost of material consumed during the FY 2023-24 and 2022-23. Hence, the inventory turnover ratio is not applicable.
• Operating Profit Margin
The operating profit margin has decreased due to a decrease in operating profit.
• Net Profit Margin
Net profit margin has decreased due to a decrease in profit after tax, for the reasons mentioned earlier in Financial Overview.
• Basic EPS
Basic EPS has decreased due to a decrease in profit after tax, being equity share capital remained the same.
• Basic EPS (excluding exceptional items)
It has decreased due to a decrease in profit after tax, being equity share capital remained the same.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS
The Company had 2,552 permanent employees as of March 31, 2024, comprising 2,411 full-time employees and 141 consultants. Recognizing the strategic importance of human resources in the media sector, the Company has undertaken initiatives to streamline processes for improved talent acquisition, performance evaluation, merit recognition, and increased productivity. Emphasizing Diversity, Equity, and Inclusion (DEI) in the workplace is crucial, as diverse backgrounds contribute to a range of perspectives, fostering innovative ideas and solutions. This commitment is reflected in our healthy gender diversity ratio of 25% across the Company.
The Company actively promotes DEI and has implemented various programs to support employee welfare. These initiatives include group insurance coverage, an onsite medical facility with dedicated medical staff at our Corporate Office and partnerships with hospitals to handle medical emergencies and conduct preventive health screenings for all employees. We also provide recreational activities and workshops covering topics like yoga, social skills and emotional intelligence to foster holistic development among our workforce.
Furthermore, the Company has prioritised initiatives to boost employee engagement and talent retention, alongside implementing core policies aimed at enhancing operational efficiencies.
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