DD Freedish e-auction: Separate slots for regional languages; Hindi news pricing to correct

New Delhi: The seventh annual e-auction for vacant MPEG-2 slots on DD Freedish begins Monday, with the government aiming to expand the free platform's reach by adding more regional language news channels.

"DD Free Dish has a strong presence in Hindi-speaking markets. As the platform's subscriber base continues to grow, we see significant potential in regional language markets, including southern India," an Information and Broadcasting ministry official told BestMediaInfo.com.

"Prasar Bharati is actively working to expand its language offerings by increasing capacity and encouraging more regional language broadcasters to leverage the opportunities presented by the free platform," the official added.

When asked if the additional capacity would be specifically allocated for regional language channels, the official confirmed that the government has directed Prasar Bharati to create dedicated slots for them, reassuring Hindi and English language broadcasters.

The Hindi news genre has seen highly competitive bidding, with broadcasters paying up to three times the base price to secure a slot.

In the 2024 e-auctions, twelve private Hindi news channels purchased slots, ranging from Rs 17.5 crore to Rs 19 crore. Collectively, these channels paid Rs 232 crore for DD Free Dish slots.

In 2023, the slot price for Hindi news reached Rs 21 crore, against a reserve price of Rs 7 crore.

Regarding expectations for revenue from the news broadcasters, the I&B official stated that pricing depends on market forces, and the government's role is limited to the established e-auction methodology.

"Bidding prices often peak due to the fear of missing out on DD Free Dish's substantial subscriber base. However, we anticipate a price correction this year, given the absence of major elections," the official said.

Prasar Bharati has consistently maintained that revealing the number of available slots beforehand would undermine the auction process.

"News channels engage in competitive bidding due to the concern that the public broadcaster might close the auction at any time. However, standard auction practice dictates that the number of bidding rounds is determined by bidding activity, not a fixed cap," a source at the public broadcaster told BestMediaInfo.com.

"While we acknowledge the declining revenues of Hindi news channels, we also recognise the crucial role DD Free Dish plays in their business models. We adjusted our methodology in 2023 to maximise revenue. Ultimately, it is the broadcasters who aggressively bid in the second round, which is beyond our control," the source added.

Under the revised e-auction methodology released last month, regional language news channels fall into Bucket R.

Bucket R is reserved for all regional language channels, excluding Hindi, Urdu, Marathi, and Punjabi, with a reserve price of Rs 3 crore.

"If a particular Indian language is represented on DD Free Dish by any channel(s) under Bucket R for two consecutive years, that language will be considered represented and moved from Bucket R to Bucket D the following year," the methodology clarified.

Bucket D has a reserve price of Rs 6 crore in the first round.

"If the government intends to onboard more than six regional language channels in Bucket R, the bucket should be repeated in the second round. These channels cannot bid in the A+ or higher buckets. This gives Hindi news channels hope that Bucket C, with a reserve price of Rs 8 crore, will be repeated in the second round," an industry expert explained.