Linear TV is still primary revenue source for broadcast networks

Despite making substantial investments in their digital businesses leading broadcast networks, such as Disney Star, Viacom18 and Zee, depend on traditional linear television as their primary revenue source, according to media industry experts.

While the digital businesses contribute 7-10% to revenues, impacting profitability, media experts anticipate exponential growth within a few years. The high cost of content and technology is a challenge for over-the-top (OTT) platforms as it is not supportive of advertising or subscription-based revenue models, while linear TV continues to be stable despite little growth in ad revenue. “Many people have jumped the gun in writing TV’s obituary. But for the next 5-7 years, TV will survive. If not grow, it will definitely stay at the levels it operates today,” Neeraj Vyas, business head, SET, Hindi Movies, Sony SAB and Sony PAL, said.

The pay and free-to-air television base is far from miniscule, while digital comes with its own issues, and the whole ecosystem is increasingly getting expensive with the higher fees for writers , directors, and actors, he said. “Networks seeing merit in both will have to balance the act.” Live Mint