Covid may be behind us, but its effect on content habits lingers — especially in cinemas and on the small screen, where TV revenues for studios like Balaji Telefilms are yet to bounce back.
"Our returns are still 28-30 percent lower than the pre-Covid period. Broadcasters' content spends have gone down," Sanjay Dwivedi, Group CEO and CFO, Balaji Telefilms, told Moneycontrol.
He added that broadcasters are being very cost conscious: "As a result, their content budgets are going down."
Content concerns
Dwivedi doesn't expect this (28-30 percent) gap to be bridged anytime soon.
"Revenues will be under stress for another year. Till the time they (broadcasters) come up with a different content strategy which entails slightly higher spends. So, I think TV margins will remain a little stressed," he explained.
Dwivedi highlighted some challenges that the TV business continues to face.
"For ages, prime time has remained the same. People have tried afternoon (slots), people have tried late night. But more or less, it is 7 to 11 (pm). The prime time band has not increased. That is one challenge that TV has always had."
Then there is competition from over the top (OTT) streaming platforms, with audiences moving to them due to cheap and abundant data, he said.
"They (broadcasters) are also seeing the cannibalising effects of their own OTT platforms, which too eats into their TV viewership. But I think this is just a passing phase. With the recent consolidation in the TV space, broadcasters will come up with their new strategies and we should wait for those to play out. It is not doomsday for TV. It may bounce back, but maybe the yield will not be as impressive as it was earlier," he added.
TV is here to stay
Dwivedi feels that unless everybody moves to digital platforms, which is still some distance away, television has legs and will evolve in a year or so.
"While there has been a shift in the audience, TV will survive for another decade or so. Maybe linear TV will see a decline, but TV will remain. It will become a connected medium. One of the broadcast companies will come and disrupt," he said.
Around 58 percent of Indians still watch linear TV every month, while Connected TV (CTV) has emerged as a premium channel with 35 million viewers, offering advertisers a high-value opportunity, according to a Kantar Media Compass report.
Kantar, a media insights and consulting firm, found that one in four Indians are now digital-only users as they only consume content using the internet and do not watch linear TV.
However, Dwivedi pointed out the growing number of free-to-air channels is encouraging.
The viewership of free-to-air TV increased by 3.45 million to an estimated 49 million subscribers in 2024, primarily due to less expensive television sets, internet issues in rural areas, improved content, increase in data charges, and as an add-on connection to Pay TV, according to a FICCI-EY 2025 report.
Said Dwivedi: "It's just that we have not understood what audiences are looking for when it comes to broadcast TV. I think somebody will come and lead the charge.
"When Zee was the leader, Star came and disrupted the market with KBC and K-serials (popular shows like Kyunki Saab Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Kii, etc). When Colors came, they disrupted the market with Bigg Boss and other content. On a cyclical basis, somebody comes and disrupts the space. I think we should wait for that."
As for Balaji, it is focusing on volumes in its television business.
"We will do more shows, we will be volume-led." Dwivedi said.
Fiction remains the mainstay for Balaji. "We get the first call from channels whenever they want such content, and we will continue to focus on this. On the motion pictures side, we have our strategy in place. We want to move into being an IP-led company. This is our goal for the next two-three years," he added.
Film focus
In films, Balaji has one Malayalam language Diwali release planned starring Mohanlal, titled Vrushabha.
"We have completed the principal photography of Bhoot Bangla, starring Akshay Kumar and directed by Priyadarshan. We have started the production of Van, starring Siddharth Malhotra. We have a few more movies in the pipeline. We have a conservative strategy when it comes to motion pictures. We will try to pre-sell the movie," he said.
From The Dirty Picture to Dream Girl, Dwivedi said that Balaji has always had an unconventional approach: "We will not stick to one genre."
Financials
He also pointed out Balaji's the Rs 350-odd crore TV topline in FY24 had an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 48 crore.
"In motion pictures, our topline was Rs 210 crore with an EBITDA of Rs 19 crore. Our consolidated numbers stood at Rs 625 crore with an EBITDA of Rs 46 crore. For 2025-26, we expect far better numbers as things are stabilising and newer initiatives will start giving us results," he said.
On the digital front, Balaji's topline was Rs 42.5 crore, and the company is looking to double or triple that number this year, he added. The segment's EBITDA losses narrowed by 68 percent in FY24, at Rs 21 crore, according to the company's earnings release.
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