MSM plans niche channels for more distribution revenue

Purvita Chatterjee Mumbai | Updated on November 15, 2017 Published on April 10, 2012

MSM (Multi Screen Media), the owner of channels such as Sony and Set Max, is planning to enter the genre of niche channels to increase its share of distribution revenues.

Speaking to Business Line, Mr N.P Singh, COO, MSM, said “We are now aggressively looking for opportunities in niche channels as it will work in a digitalised environment where there will be transparency leading to distribution revenues.”

Exploring genres such as education, travel, lifestyle and food, MSM would be adding more channels on some of these themes as part of its niche offerings. “Getting content for niche channels is not going to be a problem as there are enough production houses to source content from. The model for niche channels is based on distribution revenues and with digitalisation it will be easier for networks to enter this genre,” added Mr Singh.

Having tapped into music (Mix), regional and sports genre(Six) recently, MSM is already on the verge of completing its portfolio and niche channels will be part of it.

MSM has a history of acquiring channels in the regional space (it had acquired Aath, a Bengali channel) and more recently picked up a minority stake in MAA TV.

According to the latest FICCI Frames KPMG report, “With digitalisation, there will be more avenues for broadcasters to launch subscription driven, speciality channels in India. On the lines of international markets, niche channels are dedicated to cooking, gardening, gaming, automobiles, health or education may find flavour in India.”

With digitalisation it is also hoping that its revenue model will be equally balanced between advertising and subscription/distribution revenues. As Mr Singh says, “We expect a fair share of subscription revenues and in the next three years there is going to equal revenues generated between advertising and subscription.”

Currently almost 70 per cent revenues for the MSM network is generated from advertising.

Meanwhile MSM-promoted Set Max, the official Broadcaster for IPL is supposedly finding it tough to fill up its ad inventory during the IPL due to steep rates (estimated at Rs 5 lakhs for 10 seconds).

But MSM declares it is already making money from the iconic property. As Mr Singh says, “IPL is already profitable for MSM. We have already sold the ad inventory for the initial matches of the tournament and have held back in excess of 10 per cent of the balance matches as we expect to command a premium.”


Published on April 10, 2012
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