News Broadcasting
India outshines China in media business: Credit Suisse
NEW DELHI: Media companies in India are achieving double the advertising revenue than in China due to a favourable regulatory regime, says the Credit Suisse report titled “Opportunities of Hollywood in Bollywood.” This is despite China enjoying a larger economy, 2.5 times the per capita GDP and a higher spending in advertising.
The Indian media market is experiencing a double-digit growth in advertising revenue, fuelled by a strong GDP growth and supported by the emergence of a strong consumer market and introduction of new product categories.
The report says that progress would be much higher in the coming years due to the government-mandated shift to conditional access systems (Cas), with additional competition coming in from direct-to-home (DTH).
While the growth in advertising revenue will be higher than at present, the report predicts that the revenue growth from subscriptions will be even faster with the transition to Cas and the available choice of DTH.
More interestingly, the benefit to the broadcaster will be more in actual terms because the Cas and DTH systems both help solve the problem of “perennial underdeclaration” of number of households by cable operators.” At present, the actual subscription revenue stands at $2.4 billion with the broadcasters receiving as low as only 18 per cent of that amount, the report says.
It, however, observes that broadband is unlikely to emerge as a mass platform in the foreseeable future due to difficulties in last-mile access. As mobile phone platforms become increasingly sophisticated, it will become a better environment “for broadcasters to exploit their video content further”.
The cable industry is expected to experience considerable consolidation as the last mile operators sell out to Multi-Systems Operators (MSOs) due to inability to fund digital upgradation.
There has been a significant shift of advertising revenue over the past 15 years from newspapers to TV, though “estimates suggest a stabilisation of shares” (between TV and print media in India) “as growing literacy rates support newspaper readership growth (in India) not supported in other parts of the world”, the reports comments.
It also says that the growth of the radio sector will be higher “supported by issuance of new licenses, even as the government moves close to the public sector”.
Regarding the Cas tariff restrictions (Rs 77 for free-to-air channels, plus Rs 5 per pay channel of choice) does not seem to be a long term regime. The report comments that it seems that the freeze in tariff is a temporary issue, with the government determined to protect the consumer over the transitory period.
Once the CAS reaches five to six million households, “pricing caps will be removed”, is asserts.
The report notes that the “fragmentation of the cable industry results in significant challenges in rolling out digital infrastructure. Last mile operators have limited capability to fund rollout of STBs due to lack of access to finance. The consolidation of LMOs is highly difficult but inevitable, (as it is) driven by government mandated transition to Cas in notified parts of Kolkata, Delhi and Mumbai and entire Chennai… plus the competition from DTH.”
Of the subscription revenue, the report says that news segment takes in 4 per cent viewership and 11 per cent of advertising, but it is a highly competitive arena, with 15 players in the fray. Annual revenue from sport events stands at around $125 to 150 million, “excepting mega events like World Cup/ Champions Cup”, which together add another $100 m annually.
Disney, which has entered the market in a multi-faceted manner (with consumer products, books, magazines and TV broadcasting) has “rapidly achieved dominance in the kids’ space, and should benefit from growing market share of advertising, supported by subscription revenue”.
With foreign ownership rules expected to ease progressively, “India looks to be an important country for the expansion of Disney’s global footprint”. About Sony, the report cryptically says that “restructuring opportunities may provide for greater transparency of business.”
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
