The Hindu Business Line : Broadcasters not keen to slash ad rates with CAS rollout

Broadcasters and advertisers are locking horns over a cut in ad rates. For the moment, television channel owners have spiked a plea by advertisers to slash ad rates following a fall in viewership after the CAS rollout in Mumbai, Delhi and Kolkata. Broadcasters feel the impact of CAS rollout is only temporary and is no reason for trimming ad rates.

According to Mr Paritosh Joshi, President, Ad Sales & Distribution, Star India, "In the CAS rollout there has been a temporary aberration. This can happen in any market in any part of the world. It would be petty on the part of the advertiser to pinch pennies from this situation. In fact, it should be in the common interest of the broadcaster, agency and the client to build the value chain. Partnerships can never get formed if such a situation is used as an opportunity by advertisers.''

Revenues hit

Besides, poor reporting of viewership has already taken its toll on ad revenues say broadcasters who are unwilling to re-negotiate terms with advertisers.

Mr Rohit Gupta, Head of Ad sales, Sony Entertainment Television, claims, "In any case TAM covers 30 per cent of the C&S (cable and satellite) market and we do not get paid for the rest of the viewership. So why should we go and drop rates. Besides, TAM does not cover towns and cities below 1 lakh population and, of course, we are not paid for DTH viewership either. There is no question of agreeing to a drop in rates."

Adds Mr Joy Chakraborthy, Executive Vice-President, Zee Network Sales, "It is still a negligible market where CAS has been implemented. The TAM data is already understated and we are still not being paid as much as are supposed to get. Even when our programmes get high ratings we do not charge a premium as deals are made in advance. It is a sensitive issue. On top of it if advertisers ask for lower rates our relationship with them will get affected.''

Considering that the C&S markets have been expanding, broadcasters feel it is unjustified to ask for lower rates.

Raj Naik, CEO, NDTV Media, says, "Advertisers are being opportunistic. When C&S markets were being expanded, broadcasters did not hike their rates so why should they lower it now. It is all about forming long-term partnerships and no broadcaster will agree to lower rates."

Media buyers and planners are still figuring out ways to pacify the advertisers about the loss of viewership post CAS rollout.

Mr Manish Porwal, Executive Director, India-West, Starcom Media Vest Group, says, "Advertisers are not fly-by-night operators that they will suddenly ask for a different rate. We will assure the advertisers about the lack of deliveries and look at ways to compensate them and value- add later. There may not be any immediate compensation for them. After all every time the subscriber base changes, there is no change in the ad rates.''

Adds Ms Shubha George, Managing Director, Media Edge, India, "Our estimate is in the Zone 1 CAS rollout, around 15 lakh homes will be impacted. TAM's baseline study is expected in February and will provide inputs to measure the CAS impact. We do expect programme ratings to be affected as a result of CAS and yes, media buyers are in discussions with media owners on compensation for this likely impact. I would not like, at this stage, to speculate on how much and what types of compensation. With big media properties such as KBC 3 and the World Cup in Q1 2007, we will monitor this closely."

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