ValuePickr Forum

Sun TV Network - Investment Thesis

Just like any other product company which manufactures or designs products, I think the focus should be on the programs and content Sun produces and their target audience.

20 years ago there were serials which were watched by lacs of people, thereby giving the channels the chance to get more ads or more revenue per ad, considering the popularity of the respective serials, when people glued to their TVs wanting not to miss what happens next. Is this scenario still true? To some extent it still is because there are still crores of housewives from middle class who watch.

But unlike people who in their 20s watched only TV 20 years ago, present 20 year olds don’t do that, they have other options. So this has changed. But has the present young generation completely discarded the current content that comes on TV or they watch at least some of the content on their choice of gadget where ads come in between?

Occasionally there comes a program which is very successful but that need not come from Sun. How many Sun’s serials or programs are widely popular and what kind of ads come in those programs and which other programs/networks do these companies promote on in the same numbers. There is data available on which sector or which companies spend more or ads, but the question is which network has the bigger share?

Is there any data available for the highest TRP programs on all the networks, as we have subscribers and views for Youtube channels? Does Sun Youtube channels have higher views compared to other networks in all the states it operates in? Do ads come in between in these online videos? On a computer you can block them, can you do the same on a mobile, if not, then there is no difference between watching a program on TV or mobile.

TV being the most popular entertaining medium for the past 25 years in India is the primary source of promotion for many companies. Internet usage may have been rising but the reach of TV is higher along with the psychological influence it has, the repetition part. So no matter what is the level of the content or the kind of programs, there will be ad revenue. I don’t know if it is decreasing with the advent of online promotion or not.

Does Sun give the revenue split of ads on TV, and ads on its Youtube channels? Does Sun Nxt app generate revenue through premium membership or ads? How successful are the radio channels w.r.t bringing in the revenue?

The revenue breakup I think is important. What kind of services Sun is providing through all of its channels and how is this changing?

In essence, I think, the generation which liked any and every type of content because the concept of satellite TV was fascinating to them, is replaced with a new generation which has many options not only with the choice of content, but with also the way they consume the content. The changes technology has brought in has disrupted the ad revenue which was singular.