The annual report of Network18 highlights significant developments and challenges faced by the media group in FY 2023-24. Despite a mixed performance across segments, the company demonstrated resilience by adapting to a shifting media landscape and prioritizing digital transformation.

Key Highlights from the Report
1. Entertainment Segment: Reduced Programming, Flat Advertising Revenue
The group reduced original television programming hours in the entertainment segment due to a soft advertising environment. This strategic reduction led to flat advertising revenue for the segment, reflecting the subdued market sentiment and macroeconomic challenges affecting television as a medium.

2. News Segment: Strong Advertising Growth
The news segment emerged as a standout performer, delivering robust advertising revenue growth. This was fueled by the strong positioning of Network18’s channels across diverse markets and a surge in ad spending ahead of the general elections. The group’s dominance in news programming played a pivotal role in mitigating the impact of challenges in other segments.

3. Digital Segment: Growth Driven by JioCinema
Both entertainment and news segments in the digital space showed remarkable growth, led by JioCinema, which emerged as a game-changer. JioCinema’s revenue witnessed a sharp jump, powered by the scaling up of sports and digital revenues. Notably, the platform became the second-largest broadcaster-OTT platform in terms of total watch time and monthly active users (MAUs).

4. Financial Overview: Revenue Growth but Profitability Decline
Operating Revenue: Increased by 49.4%, reaching ₹9,297 crore.
Operating Expenses: Rose by 63.7%, driven by higher costs for premium sports rights and substantial investments in digital growth verticals.
Profitability: Declined due to continued investments in sports and digital expansion, reflecting the group’s focus on long-term value creation over immediate financial gains.
5. Advertising Trends: Challenges and Opportunities
Subdued FMCG Demand: The largest advertising segment, FMCG, remained cautious in ad spending due to weak consumer demand.
New-Age Clients: E-commerce and D2C brands reduced ad spends owing to funding slowdowns and soft consumer demand.
Green Shoots in H2: Commodity price rationalization led to signs of recovery in the second half of the year.
Regulatory Impact: A ban on certain advertising categories further constrained growth.
6. Strategic Investments in Digital Leadership
The report underscores Network18’s commitment to digital transformation. Investments in news and entertainment digital products are part of its broader strategy to secure leadership in the growing digital segment. The group views digital as a key driver of future growth, leveraging its strong content portfolio and market presence to capitalize on the evolving media consumption patterns in India.

7. Market Outlook
Television: Expected to grow at a slower pace compared to historical trends, impacted by macroeconomic headwinds.
Digital: Advertising will drive growth, supplemented by rising subscription revenues as the OTT market matures.
JioCinema: Positioned as a major player in the OTT space, poised to expand its footprint and user base further.
Management’s Perspective
The report reflects optimism about India’s media growth potential, with the management emphasizing its readiness to adapt and lead in a challenging yet opportunity-rich environment.
“These investments have affected the profitability of our business. However, we recognize the importance of maintaining a strong presence in the digital segment, which will be crucial for driving the company’s long-term growth,” the report states.

Author: Sania Khan