Is Free Dead ? Think Again !

In India, the landscape of television is rapidly evolving. Despite the dominance of major players like Sony, Disney, Zee, and Viacom18, a surprising trend has emerged: Free-to-Air (FTA) channels are not only surviving but thriving. According to the Telecom Regulatory Authority of India (TRAI), there are 920 TV channels in India, of which 553 are free-to-air. These FTA channels, which earn solely through advertisements, have seen explosive growth, even outpacing market leaders.

The Rise of FTA Channels

Dangal TV, operated by the relatively unknown “Enter10 Television,” has become the most-watched TV channel in India. Other prominent FTA channels include Shemaroo, Goldmines, and Manoranjan TV. Over 900 million Indians watch TV, with 35% tuning in exclusively to FTA channels—a significant increase from 20% in 2021. While the number of cable TV households dropped to 55 million in 2023 from 90 million in 2021, homes connected with free DTH (DD Free Dish) surged to 58 million from 35 million in the same period.

The Market Divide

The key to understanding this phenomenon lies in India’s socioeconomic landscape. From a consumption standpoint, India is divided into three distinct markets:

1. Affluent Market (3% of the population): With a per capita GDP comparable to Australia (USD 65,000), this market, though small in percentage, is substantial in size (42 million people).
2. Value-Conscious Market (25-30% of the population): This segment, with a per capita GDP similar to the Philippines (USD 3,500), is characterized by selective spending. These consumers might subscribe to Netflix for a month, binge-watch, and then cancel.
3. Sub-Saharan Market (60-65% of the population): This large segment has a per capita GDP akin to sub-Saharan Africa. Many are either media dark or heavily reliant on FTA channels. The affordability of DD FreeDish—a one-time cost of Rs. 1000-1200 with no recurring fees—makes it a popular choice.

Targeting the Right Audience

Top broadcasting channels primarily cater to the affluent and value-conscious markets, often overlooking the vast Sub-Saharan segment. However, with 58 million homes (approximately 278 million people) connected to DD FreeDish, this platform offers unparalleled reach. For companies like Hindustan Unilever, promoting low-cost products (e.g., Lifebuoy soap) on FTA channels is a strategic move.

The Hot Market for Advertisers

FTA channels are now a hotbed for advertisers, with major brands like Hindustan Unilever and Dabur leading the charge. The total ad spend on FTA channels is estimated to be around 3000 crores, roughly 10% of the 29,700 crore television ad industry. Given their rapid growth, FTA channels are poised to outpace several market segments in the near future.

Conclusion

For the broadcast industry, free is the new frontier. Entrepreneurs who recognized this shift early are now reaping significant benefits. As the number of FTA viewers continues to rise, the advertising landscape will undoubtedly evolve, making free-to-air channels a critical part of the media mix.

Embrace the power of free. The market is far from dead—it’s just beginning to flourish in new and unexpected ways.

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