The ascendency of India as an economic world power

Sudden exit of Indian Cricket Team from World Cup Cricket 2007 has depressed millions of Indian fans but it has opened a new opportunity for the TV channels in India. You see, when India was playing in World Cup, all the people were glued to only the channels that broadcast World Cup Cricket matches. Now, since India is out of the World Cup 2007, millions of people are no longer interested about Cricket anymore and they are watching other channels too. So, TV channels have their audience and they can now go for a hike in their advertisement rates.

Business Standard reported:

Television channels are planning to charge more from advertisers. The rate hikes are likely to be effected in the middle of April, when there will be a large number of fresh contracts under negotiation. Many existing contracts end with the financial year.

 The rate rise will be led by the major channels, such as Zee TV, which has of late gained viewers and advertisers, but will be sharper in the case of the smaller channels. “The hike by the major channels will not be very big, but they will, given their high volumes, make a lot of additional money by the end of the year,” said an industry player. The smaller channels, whether they peddle entertainment or information, charge about a third of the rates charged by major channels and that leaves immense scope for an increase.

Indian entertainment industry is growing. Television is reaching more and more people. India has a population of over 1 billion. Many families still do not own a TV set. Thus the market can see healthy expansion for a number of years.