Summary:

According to a Crisil Ratings report, the operating margins of Indian television (TV) broadcasters are anticipated to grow by 300 basis points (bps) to reach 15% by FY27, primarily driven by the expansion of their digital offerings. Covering 90% of the industry’s revenue, the report underscores how robust growth in digital revenue is set to enhance both profitability and advertisement revenues. However, the success of broadcasters will rely heavily on their capacity to compete effectively with digital platforms while capitalising on economies of scale.

While still below the pre-pandemic levels of 12-15%, improved profitability is expected to raise returns on capital to 10-12% by FY27, according to the report. As revenue from traditional TV remained stagnant between 2021-22 and 2024-25 due to viewers shifting toward over-the-top (OTT) platforms and social media, broadcasters are now prioritising the development of their digital platforms and expanding their offerings in live sports and news content. By FY27, Crisil predicts the digital revenue contribution will grow to 25%, allowing broadcasters to gain from lower fixed costs and more effective content monetisation strategies.

Source: IBEF

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