What are the real source Income of TV Channels? Filmmakers Fans Presenting you the list of ways TV Channels earning money in India. If You need any further clarification on this topic, please write your thoughts in the comment section shown below. Happier to assist you.
Real Source of Revenue for TV Channels In India
From Star Plus, Sun TV, Star Maa to Aaj Tak, ESPN, and TLC are successful enough to woo their potential audience. These channels are running efficaciously from years by succeeding their revenue targets. Generally the year plan of these TV channels are constructed in such a pattern that they always end up earning more than their set target. It is only once in a blue moon that their predictions are not in their favour. But that is how business works. “RISK IS THE KEY TO PROFIT.” There are many factors that become a determinant and derivation of their revenue.
- TV Shows – In order to air a new show on a particular show, the producer has to pay the TV channel. The rate of payment depends on the time the producer wishes the show to be air. If the show is aired during the prime time 8pm – 11pm then it will expensive deal, however if it’s any other time of the day, the deal is negotiable and reasonable. Once the TV shows start gaining popularity, the revenue earned by the show through TRP, a conventional amount goes to the channel.
- Advertisements – The main source of revenue in the field of media is Advertisements. Cosmetics, Innerwear, Ornaments, LIC policies, Swach Bharat Abhiyanand other brands aligning with the above classifications are profoundly seen during the breaks. Another criterion that decides the price of the advertiser has to pay to the channel is GRP -Gross Rating Point. A technique used to calculate the status of promotion and marketing done through digital media, thus it is a trial and error method to analyse the advertising impact on the viewers. In order to calculate GRP, percentage of the target market touched is multiplied by the covered frequency. Thus, if you get to publicize your brand to 50% of the aimed market and give them 3 exposures, the GRP rate would be 150 points. So a TV channel has GRP and the show has TRP….
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This means even if the channel is watched a lot regardless of the shows running on it, irrespective of the time, the GRP automatically rises giving it an opportunity to the channel to charge more per second for every advertisement they air. Also the TV shows with high TPR, are always in demand for advertisements, which also increase the rate. For example the advertisements during a cricket match depending upon how popular the match is whether a series or World Cup, especially if it is India-Pakistan match, the channel make up to Rs.1Lakh/per second.So even though the GRP of the channel is low-slung but the TRP of the show is great, the channel can increase the rate of per second the advertisements appear on the screen. Apart from that there are Ticker Advertisements that appear when the show is running, though it appear for 5- 10 seconds, but are more expensive than the advertisements during the break. Infomercials like Naaptol are those advertisements that are aired during non-peak hours at considerably cheaper rate.
- Subscription – Subscription is another source of income for the TV channels. Every time, a person subscribes a show either on You Tube or on Hotstar, Voot etc, certain amount from the subscription fees goes to the channel that is served as their revenue.
- Royalty- TV channels generally prefer to air their own content, however if any production house creates a content according to the format of the channel, the channel deserves royalty for it. For example, Kaun Banega Crorepati has copied its format from the British show Who Wants to be a Millionaire? The British Production house deserves Royalty from Big Synergy Productions.
Thus the TV channel owners earn estimate revenue of about of 80 Cr. – 150Cr. The top three channels that rule rural audience are Zee Anmol, Sony Pal and Star Utsav. According to BARC India, while the most watched television channels like Star Plus, Colors and Zee TV, on an average, command anywhere with the estimate revenue of 145Cr. – 150 Cr.