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ZEEL targets 30% ad revenue growth in FY16

MUMBAI: Zee Entertainment
Enterprises Ltd (ZEEL) is targeting ad
revenue growth of 30 per cent from
its non-sports business this fiscal due
to increased spending from e-
commerce, auto and FMCG companies.
While the main existing channels will
see double-digit growth, new
channels like &TV and Zindagi will
also contribute to expand the ad
“We are eyeing a 30-per cent
increase in our ad revenue from our
non-sports business this fiscal. While
the main existing channels will grow
their ad revenue by 16–18 per cent
over the prior year, new channels will
also contribute to this growth,” said
ZEEL chief sales officer Ashish
The closure of non-performing
channels like Zee Jagran and Zee
Premier will more than be offset by
new revenues from &TV and Zindagi.
Zee TV and the cinema cluster should
each grow by 15 per cent, said Sehgal.
“We expect everything to fire. This
gives us the confidence that we will
be able to achieve 30 per cent ad
revenue growth in FY16 over the
previous fiscal,” said Sehgal.
According to Sehgal, the free-to-air
(FTA) ad market is also growing. “We
expect Zee Anmol to grow at least by
25 per cent over the previous year.
After digitisation, new markets have
emerged and the viewership of FTA
channels is increasing.”
When BARC starts reporting
viewership data of rural markets, the
FTA channels will stand to gain. “The
FTA ad market currently stands at
around Rs 800 crore (Rs 8 billion), the
bulk of which goes to Doordarshan.
The private channels make about Rs
200 crore (Rs 2 billion),” said Sehgal.
The regional channels also should see
strong growth. With Zee channels
dominating the Marathi TV space,
there will be revenue growth due to
pricing power.
“Our audience share in the Marathi TV
market varies between 65 and 75 per
cent. This includes Zee Marathi, Zee
Talkies, and ZMCL’s [Zee Media
Corporation Ltd] news channel Zee 24
Taas. We are almost like Sun TV
Network in Tamil Nadu. We will have
the flexibility to increase ad rates,”
said Sehgal.
Zee Bangla, which had somewhat
slowed down, will also see a healthy
double-digit growth due to improved
channel performance. It is in any case
a duopoly market, said Sehgal.
Since BARC started reporting data,
ZEEL’s southern-language channels
have started showing improved
performance. “Since Zee Telugu is a
market leader, we are looking at a
20–30-per cent ad revenue growth
from the channel. Zee Kannada also
should see good growth. Zee Tamizh
should see an organic growth of 10–
15 per cent,” said Sehgal.
In the fiscal first quarter, ZEEL
posted advertising revenue of Rs
779.9 crore, up 25.4 per cent from
the earlier year. The company
reported that excluding sports
business, which is event led, ad
revenue growth was in mid to high

ZEEL targets 30% ad revenue growth in FY16

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