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The move could lead to an increase in the production costs; industry experts are also of the view that the Indian broadcasting ecosystem is still not ready for the development. Indian broadcasters are still heavily dependent on advertising revenues as enough income from subscription is still a distant dream.
The Telecom Regulatory Authority of India's (TRAI's) recommendation to cap the duration of advertisements on television at 12 minutes per hour has thrown open a huge debate. While many are of the view that the implications could be many, the decision is overall expected to largely have a three-fold impact.
Impact on content
A reduction in the minutes of inventory would evidently mean that the number of content minutes per half hour would have to be increased. This means that the cost of producing content will also have to move upward. Consider this: if a general entertainment channel (GEC) currently pays Rs 7 lakh (approximate) per episode with a 22 minute run, the per minute cost for the episode comes to Rs 32,000. Now, with TRAI's recommendation at hand and consequently, the content minutes going up, the 22 minute run could extend to an estimated 24 minutes.
Therefore, a two minute extension of an episode would mean that the GEC will have to shell out at least Rs 64, 000 extra per episode; this means that the cost of that one show will go up by Rs 3 lakh per week and if runs for at least 15 weeks, then the costs are up by 45 lakh per show. Now, if a channel is to run even five original shows a day, the costs will go up by Rs 2.25 crore a quarter!
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The Telecom Regulatory Authority of India's (TRAI's) recommendation to cap the duration of advertisements on television at 12 minutes per hour has thrown open a huge debate. While many are of the view that the implications could be many, the decision is overall expected to largely have a three-fold impact.
Impact on content
A reduction in the minutes of inventory would evidently mean that the number of content minutes per half hour would have to be increased. This means that the cost of producing content will also have to move upward. Consider this: if a general entertainment channel (GEC) currently pays Rs 7 lakh (approximate) per episode with a 22 minute run, the per minute cost for the episode comes to Rs 32,000. Now, with TRAI's recommendation at hand and consequently, the content minutes going up, the 22 minute run could extend to an estimated 24 minutes.
Therefore, a two minute extension of an episode would mean that the GEC will have to shell out at least Rs 64, 000 extra per episode; this means that the cost of that one show will go up by Rs 3 lakh per week and if runs for at least 15 weeks, then the costs are up by 45 lakh per show. Now, if a channel is to run even five original shows a day, the costs will go up by Rs 2.25 crore a quarter!
Read more
