Is free YouTube content costing Sony its TV audience?

Sony Pictures Networks India (SPNI) has been leveraging digital media quite effectively by uploading its TV content on YouTube. Sources suggest that SPNI is earning around Rs 250 crores annually from YouTube by offering full episodes of most of its TV shows for free. However, this raises a critical question: Is cashing in on YouTube costing Sony its TV audience?

According to TV ratings agency BARC, the viewership of SPNI’s flagship Hindi General Entertainment Channel (GECs), Sony Entertainment Television (SET) has seen a significant decline in recent years. As earlier reported by exchange4media, its GRPs have dropped from 90-100 to around 70.

Experts believe that one of the reasons for the drop in viewership could be Sony putting out content on YouTube.

Posting content on YouTube has been a common practice for many broadcasters, but usually, it is either small clips or teasers of the current popular shows on air. But Sony has been uploading full episodes of most of its TV shows on YouTube. Though there is an uploading gap of around 15-20 episodes from the current broadcast, the content is available for free. 

“They have put out their content on YouTube which gives users an option to watch without a paid subscription. Viewers prefer to watch their favourite shows in their leisure time. SonyLIV is a paid platform, so they opt for YouTube where they can watch for free, even if behind by a few episodes," said an industry expert. 

Experts say that Sony TV's viewership has been affected by a general shift of viewers towards digital platforms, but uploading of the content on YouTube by the network has impacted it further.

According to Karan Taurani, Senior VP, Elara Capital, putting content on YouTube could be one of the reasons for the dropped ratings but it is not the primary reason.

Another expert said that availability of free content on YouTube has a negative impact in terms of SonyLIV’s viewership, because broadly, more than 60 percent of OTT platform consumption is catch-up TV content.

“The hurt for Sony TV rating in any which way was happening because of the reduction in the number of pay TV households and time spent on TV. YouTube is one of the reasons, but not the prime reason for Sony TV's rating coming down.

“Somewhere, digital in general is impacting pay TV negatively because audiences are already watching the content on a platform like SonyLIV, for which they have a paid subscription. So, YouTube is not the only reason for Sony TV's rating coming down. It's also the consumption,” the expert said.

According to the Broadcast Audience Research Council (BARC) India's data Week 1, 2024 data, the top ten channels (All India 2+) were Star Plus, Dangal, Sun TV, Star Maa, Colors, Goldmines, Sony Sab, Star Pravah, Zee Telugu, and Star Vijay. In HSM (U+R NCCS All 2+), the top five channels were Dangal, Star Plus, Colors, Goldmines, and Sony SAB.

In the same week, in the Delhi market (2+), Sony TV was among the top channels. It ranked fifth with 77.36 weekly Average Minute Audience (AMA). In week 2, the viewership further declined in Delhi market (2+), to 65.48 weekly AMA. 

The channel was again missing in the top ten all India channels and mega cities. As per the BARC data for week 17, the channel is not ranked in the top ten in All India 2+. In the top five channels of HSM (U+R) NCCS All 2+, includes, Star Sports 1 Hindi, Dangal, Star Plus, Sony SAB, and Star Pravah. The Delhi market, where the channel was among the top five in the first few weeks, was missing in the week 16 and 17. 

Industry sources said that Sony is among the few broadcasters putting out full episodes of its content on YouTube and monetizing it. The same content is available on TV channels and its OTT app SonyLIV.

“SPNI is earning Rs 250 crore from SonyLIV. The revenue from YouTube will be less than or around Rs 250 crore. Definitely it is a good monetising option,” said an industry source who did not wish to be named.

According to Karan Taurani, it's a very small portion of the revenues. “Not all content, but certain shows are available free, and this helps you get a larger reach in a way,” he said.

The network has put out most of the latest shows currently airing on its general entertainment TV channels- SET India, Sony Sab, Sony Marathi, Sony Aath and Sony YAY- on the respective YouTube channels.

For example, full episodes of its mythological show, Shrimad Ramayan, which is currently on air on Sony TV and SonyLIV, are available on YouTube. However, there is a gap of around 15-20 episodes. Similarly, full episodes of comedy show Madness Machayenge, daily soap Kavya and others from the Hindi GECs are on YouTube. 

From Sony Sab, popular dramas Wagle Ki Duniya and Pushpa Impossible are available on the YouTube channel with a gap of 10-12 episodes from the current broadcast.

From Sony Marathi, Nivedita Majhi Tai, Abol Preetichi Ajab Kahani, and others are available for free on Youtube. Here also, there is a gap of 15-20 episodes compared to TV channels.

According to Pankaj Krishna, Founder and CEO, Chrome Data Analytics and Media (Chrome DM), the availability of full episodes on YouTube has led to higher engagement levels,  with many viewers discovering the content on YouTube and then transitioning to SonyLIV for more.

Taurani also said that there's also a positive impact of putting content on YouTube because, getting content on YouTube increases reach.

“YouTube has got a wider monthly active user (MAU) base as compared to what a SonyLIV would have. I think YouTube has got close to 500 million MAUs as compared to Sony Live, which will be more towards 100-150 million MAUs.

“So, I think you can get a larger reach, you can penetrate deeper. The only thing is you have to share revenues with YouTube, but getting a larger reach means you can do better monetization of your content and try to make it viral and large for a larger reach. I think it's a win-win proposition, both for YouTube and for Sony content,” he said.

He added that it is being tried by many other players in the ecosystem.

“I think even Star has done this for some of their shows, and so has Zee. So, it's a very good strategy which augurs well,” he said.

e4m reached out to Sony for its comments on the story, but is yet to get a response.