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DTH players looking at ad revenue as a growing revenue stream

MUMBAI: With subscriber growth on
the rise and reach high, direct-to-
home (DTH) companies are looking at
upping advertising revenues.
Still small in size, ad revenue has
potential to grow. Even media
agencies have realised that DTH has
become a good platform for
“There is big scope of advertising on
the DTH platforms. They [DTH
operators] are adding a lot of
subscribers and have huge reach,
which advertisers across categories
would want to target,” Starcom
MediaVest Group India CEO
Mallikarjunadas CR said.
According to TRAI data until 31 March
2015, the numbers of registered and
active subscribers being served by the
six private DTH operators are 76.05
million and 41.15 million.
Mallikarjunadas added that the pie
might be small today, but there is
definitely potential. “TV viewing is a
habit and families tend to switch on
their TV and DTH multiple times. By
default, the first channel is the home
channel, which DTH players use for
advertising. It has good visibility,” he
Recently, Airtel Digital TV gave
exclusive mandate to SVG Media’s
NetworkPlay to monetise all its
digital advertising inventories, while
Videocon d2h appointed a national
head of ad sales to exploit advertising
as a revenue stream across its
bouquet of regional-language and
proprietary channels.
Interestingly, Videocon d2h had
disclosed that its ad revenue in the
first quarter (Apr–Jun) of FY16 was
at Rs 8.1 crore (Rs 81 million). For
the full fiscal ended 31 March 2015,
the company had reported ad income
of Rs 10 crore (Rs 100 million).
For the rest of the current fiscal,
Videocon d2h is expecting to maintain
its momentum as it prepares to launch
more proprietary channels.
“We recently set up an advertising
team to sell ad inventory on our
proprietary channels. We are seeing
encouraging response from multiple
advertisers,” Videocon d2h executive
chairman Saurabh Dhoot had said
Videocon d2h currently runs 10
proprietary channels including d2h
Nursery Rhymes, d2h Cinema HD and a
music channel. Similarly, other
players also offer value-added
services and propriety channels,
where they can explore advertising
Videocon d2h CEO Anil Khera had said,
“With the goal of generating new
revenue through an expansive,
targeted ad sales platform, we have
assembled a solid team that is more
than capable of moving this initiative
forward for us. We look forward to
being a part of their success in
tapping Videocon d2h’s reach of 65
million consumers with exciting new
options, and we anticipate the
advertising programme to expand even
further as we launch our own branded
channels in future.”
In fact, Videocon d2h’s advertising
initiative, which is targeting
inventory opportunities, is a result of
positive feedback from advertisers
like Volkswagen, Honda, Disney, Sony
TV, Zee Group and Star Sports.

DTH players looking at ad revenue as a growing revenue stream

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