Advertising revenue from television channels witnessed a decline in 2023, according to reports. It also says that at the same time, the cinema sector created a revolution at the box office. Broadcasting companies like Zee Entertainment and Sun TV recorded a significant decline in advertising revenue. The reason is believed to be the ICC World Cup 2023. The figures suggest that the advertising revenue generated by the broadcasting of ICC World Cup cricket was 25 percent higher than expected. Despite rising spending, the FMCG sector saw a drop in advertising income. Advertising revenue decreased by 3.3 percent, bringing the total revenue down to Rs 980 crore.
According to the IIFL Finance Limited, as more businesses choose to connect their advertisements with ICC cricket, television providers’ ad revenue will keep dropping in the third quarter of the year. Zee Entertainment has previously responded that the World Cup will reduce the chances of ad revenue recovery, although it is optimistic that it will recover.
Global media investment firm Magna had stated that television companies’ revenue from advertising will increase by 8.9 percent in 2023, with total companies earning around Rs 36,500 crore. And by 2024, the revenue was predicted to reach Rs 40,100 crores. Gaming companies also increased their advertising spending. India’s total ad spending has declined to 11.8 percent in 2023 from 17.4 percent in 2022. It is estimated that by 2024, it is likely to decrease again to 11.4 percent.
Bollywood had a significant decline in box office receipts as a result of the Covid19 outbreak earlier. The film industry, however, experienced a Rs 4,700 crore increase this year. According to experts, this growth is almost 20 percent. In 2024, though, this growth might not hold up. There are just seven major Bollywood films scheduled for release between January and June.
Zee-Sony is attempting to recoup its advertising income from OTT and television. India’s OTT viewership decreased to 13.5% in 2022–23 after growing by 20% in 2021–2022. There are 48.11 crore OTT viewers in India at the moment.
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