Will news channels’ DD Freedish bids reflect market realities this year?

New Delhi: News broadcasters are set to race for slots on Prasar Bharati’s DD Freedish. However, unlike previous years’ trend where news players fiercely bid to reach DD Free Dish's vast audience, this year the bidding war might not reach the same fever. 

While the top news broadcasters may not incur a dent splurging crores to secure a spot, cash-strapped news channels might find it difficult to sustain, given the economic headwinds in the segment. 

The ‘what’ and ‘why’

Regional push

The Ministry of Information and Broadcasting can taste the palpable potential of the regional language markets, as told by an MIB official to BestMediaInfo.com. It is well known that Freedish is an HSM phenomenon and Prasar Bharati is eyeing to change the perception. 

“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,” the I&B official said.

As a result, the I&B ministry has asked Prasar Bharati to create dedicated slots for the regional channels to bid in the auction. As per the revised e-auction policy released by the pubcaster, the regional channels, excluding Hindi, Urdu, Marathi, and Punjabi, fall in Bucket R with a reserve price of Rs 3 crores. 

According to industry whispers, if the government is keen to onboard more than six regional channels in Bucket R, the bucket should be repealed in the  second round. This gives Hindi news channels a ray of hope that their bucket - C - will also be repeated for a second round, the reserve price for which is kept at Rs 8 crore.

No major elections on the way

News broadcasters may resort to moderating their bidding strategies this year due to the absence of any major elections. Typically, the onset of vital elections in the country drives up demand for news slots on DD Free Dish. 

News channels aggressively bid on the pubcaster’s platform to secure maximum reach, complementing the political coverages, debates, and election-related programming. This subsequently results in higher viewership and ad revenues. 

However, with no Lok Sabha or major state elections in the near future, the urgency may subside, leaving space for a potential price correction.  

Revenue restraints

The news industry, as a whole, is dabbling between the dumbell of doom. On one side of the dumbell, there is rising cost pressures, and on the other side, the declining ad revenues. This may make the cash-strapped broadcasters rethink their bidding prowess and be extra cautious about overbidding. 

Last years’ auctions saw a flurry of activity, with twelve private Hindi news channels shelling out a combined Rs 232 crore for slots. Individual purchases ranged from Rs 16.35 crore to a hefty Rs 19 crore. The price for Hindi news slots peaked at Rs 21 crore in 2023, a significant jump from the reserve price of Rs 7 crore.

However, with this year’s political landscape immune to major mobilisation or commotion of the elections, the news networks may reassess their return on investment (ROI). This may lead to a better response to the FOMO (fear of missing out) and a more rational bidding behaviour. 

The ‘how’

Now that the repository of respites is out, what can be the resolutions for news broadcasters?

It is crucial to analyze the trends of this year's bidding process on Prasar Bharati’s DD Freedish, an industry veteran said.

While GECs have paid a premium of around 20% on the base price of Rs 15 crore for the slots bought so far, the Movies genre paid about a 40% premium in the first round of e-auctions.

News channels, which have been stretching the bid to more than 2.5 times the reserve price, need to be mindful.

“It is not only the news genre that is highly dependent on the free platform. There are business models purely around the free platform even in GEC, Movie, and Music. Look at those players. They are behaving conservatively. The News genre also needs to show restraint,” said an industry veteran.

The veteran recommended a maximum premium of 40% on the reserve price for news broadcasters, aligned with the patterns seen in other genres, including GECs.

“Why can’t the news broadcasters stop at, say, Rs 10 crore? The onus lies with the first bidders, who set the benchmark. If the benchmark is set anywhere around Rs 10 crore, the e-auction will travel to Bucket C (technically the fifth round),” the industry veteran added.

2024’s successful bidders from the news genre: