The expected has happened, with so many channels that have come in as a flood in the past few months, the demand and the scarcity that few of the old channels used to enjoy has now vanished and everyone has been scampering to even survive, let alone prosper.
It is said that there was a time when each second of ad space cost about Rs 10000 in the channels but now the same channel is willing to offer the seconds at Rs 80 and is still unable to find takers. Apparently, there was a boom in the channels during the election time and many were of the hope that they could mint money just like the TV9 channel.
However, the recession in the market and the crash in the real estate market came at the same time and even the thought that the TDP would win the elections and publicizing for that party also took a beating. It is now being said that even the national channels have begun to put additional pressure by differentiating their revenues state wise. Experts say that though there is an element of glamour and recognition involved in it, the key factor is time and how best a channel can make use of it to reap benefits. Now that the channels have increased, the ads are getting distributed and this has caused an effect in the revenue sharing business too.
The supply of ads has reduced and the number of channels has increased so demand has fallen down considerably. It is said that one channel had to sell its plots to keep the system running and then there is another channel that is said to have given unrestricted air time to one of its investors since they could not pay back. The experts say that this situation will now continue for the next two years and those who will manage to stand up during this phase will only be able to rule the roost in the coming time. Even the poaching activity is said to have reduced a great deal and now employee hunting has almost become nil. Instead, the channels are said to be working on cutting down the costs and salaries and also lay off their employees.
