Broadcast in India: Diverging subscription revenues reflect shifting industry dynamics

The subscription revenue of India’s leading broadcasters over the past four years highlights the contrasting trajectories shaping the industry. Broadcasters such as ZEEL, Star India, Sony Pictures Networks India and Sun TV have experienced varying degrees of success, reflecting the critical role of content strategies, regulatory changes, and digital adaptation in the competitive media landscape. While Network18’s subscription-specific growth remains undisclosed, its overall financial performance in FY 2024 underscores its ability to adapt to evolving market demands.

ZEEL’s subscription revenue growth accelerates

Zee Entertainment Enterprises Limited (ZEEL) demonstrated steady growth in subscription revenues, rising from ₹3246.6 crore in 2022 to ₹3666 crore in 2024. This 10% year-on-year (YoY) increase in 2024 builds on the modest 2.7% rise in 2023, when revenues reached ₹3335.5 crore. ZEEL’s improved performance is attributed to the implementation of the New Tariff Order (NTO) 3.0 and the robust success of its digital platforms, including ZEE5 and Music. These platforms, supported by diverse and engaging content, have positioned ZEEL as a strong player in the increasingly digital-centric broadcasting space.

Earlier, in 2022, ZEEL’s subscription revenues had remained flat due to the regulatory challenges posed by NTO 2.0. The resolution of these legal issues and subsequent tariff reforms in 2023 and 2024 allowed the company to regain momentum. By leveraging its digital assets and a strategic focus on premium content, ZEEL has managed to achieve consistent revenue growth, marking a significant turnaround from earlier stagnation.

Star India shows stability amid declines

Star India, known for its dominance in India’s broadcasting market, has displayed resilience despite slight revenue declines. Subscription revenues peaked at ₹7000 crore in FY 2023 before stabilizing at ₹6909 crore in FY 2024. The marginal dip reflects the challenges faced by traditional broadcasters in retaining their subscriber base amid the growing competition from over-the-top (OTT) platforms and changing consumer preferences.

In FY 2021, the subscription revenue of the company was Rs 5,521 crore. It went up to Rs 6,130 crore in FY 2022.

The network has successfully merged with Reliance Industries Ltd, and all attention is now focused on the future trajectory of the newly created mega entity, JioStar. As the market eagerly watches, the coming years will reveal how this powerful merger shapes the competitive landscape and drives innovation within the industry.

Sony Pictures shows consistent growth

Sony Pictures Networks India (SPNI) has shown gradual but steady growth in subscription revenues, increasing from ₹2484 crore in 2021 to ₹3206 crore in 2024. This growth reflects Sony’s success in leveraging regional content and a diversified strategy to cater to niche audiences.

By focusing on regional markets and introducing innovative programming, Sony has managed to strengthen its subscription revenue streams and expand its reach across various demographics.

In the last four years, the company faced strong headwinds with fallout with Zee on the merger, national and international litigations that followed and SPNI getting a new CEO and MD Gaurav Banerjee. All eyes are on how FY2025 and FY2026 turn out for the company.

Sun TV faces challenges

Sun TV has struggled with stagnation, reporting subscription revenues of ₹1814 crore in 2024, a marginal increase from ₹1761 crore in 2021. Despite its stronghold in regional markets, Sun TV’s inability to significantly grow its subscription revenues highlights the challenges faced by traditional broadcasters in adapting to the digital shift. The company’s reliance on legacy content and limited investment in digital transformation have hindered its ability to compete with more agile and tech-savvy players in the industry.

Network18 leads the growth with a 45.8% revenue surge

Network18 emerged as the standout performer among India’s top broadcasters in 2024, reporting a remarkable 45.8% growth in consolidated advertising, subscription, and program syndication revenues. Its revenues reached a record-breaking ₹8076.6 crore, up from ₹5537 crore in 2023. While Network18 does not disclose advertising and subscription revenues separately, the surge highlights its ability to capitalize on market trends and leverage the growing demand for digital and syndicated content.

The company’s comprehensive approach to addressing audience needs through innovative programming and strategic partnerships has positioned it as a leader in the broadcasting space. By focusing on digital expansion and tapping into new revenue streams, Network18 has set a benchmark for growth and adaptability in a competitive and rapidly evolving industry.

Sources: www.exchange4media.com