How absence of ratings bruised smaller news channels
Five months into the BARC data blackout, smaller news channels have endured losses and some have also disappeared from TV screens in the last four to five months
It has been over five months since the last BARC data on news channels was released and this prolonged delay has been especially hard on the smaller regional news channels. Experts count up losses to the tune of Rs 2000 crore in this period.
While the larger news channels have been able to keep their businesses afloat on the basis of past ratings and performance history, smaller news channels have endured losses and a handful has also disappeared from television screens in the last four to five months.
“The bigger news channels have data from week 36 - week 39 to furnish and it is a given that a channel that is on number one or at number two or three for that matter wouldn’t suddenly lose its viewership even if there are marginal movement in numbers. It is the smaller channels that have been hit worst and especially the newer ones who have no access to any data,” said Romi Bidichandani, MD at Mumbai-based media sales company Affinity Media.
According to Bidichandani a handful of channels in states like Odisha, Assam and Bengal had to shut shop in the absence of TRPs. “With no ratings to furnish, the channels have also been asked by advertisers for deep discounts. The discount ranged anywhere between 5% and 50% and the smaller channels couldn’t afford the sudden drop in ad bills in spite of not having a huge drop in ad volumes."
According to experts, while advertisers continued to invest in news television they renegotiated rates and demanded bonus impacting inventory. Advertisers went for ‘more for less' in the period.
According to the latest TAM numbers, the ad volume actually went up by 19% between January and March this year as compared to the same period in 2020 while only two out of the top five advertiser category remained common between both periods. Between January 2021 and March 2021, the top five categories that advertised in the news genre included retail outlets-jewellers, paints, cars, toothpaste and two-wheelers. In the same period last year, the list had cars, retail outlets-jewellers, spice, toilet-floor cleaners and cement.
The absence of ratings has forced smaller players to find newer baits for advertisers for better negotiations.
Divakar S, Business Head at Bangalore based news channel News First Kannada for instance has been going to advertisers with his channel’s YouTube views to show its popularity. Launched in September 2020 the channel never got to see any of their ratings to date. “We show the advertisers our content and help them understand the perception of the channel through our online hits and views and the whole deal of not having ratings has cost me damages to the tune of at least Rs 15 crore- Rs 20 crore in these five months,” he said.
Broadcaster bodies such as NBF (News Broadcasters Federation) have been repeatedly reaching out to MIB requesting the return of ratings at the earliest. Recently they wrote to the chairperson of the Competition Commission of India (CCI), requesting them to investigate the “monopoly” practice of BARC India and its impact on FTA news channels in the county.
“Unlike entertainment, news cannot be planned we do not have any control on content as it is served on a real-time basis and that makes TRP the most important currency. Without ratings, it is like appearing for your board exams but not getting any marks to secure you a seat at a top college,” said R. Jai Krishna, Secretary-General, at NBF.
According to Jai, the news ecosystem couldn’t monetize the best period of the year which is the festive period between September and April due to the absence of ratings. “Channels especially the newer ones and local ones will also lose out on election season commercial ads because they have no data to back them up for a better pitch to advertisers,” he said.
