The Hindu Business Line : Improving clout with advertisers

The hikes in advertising tariffs effected by the Sun TV Network may help boost investor confidence in its stock, which has been weighed down by concerns of intensifying competition from new channel Kalaignar TV. The rate hikes, effective February, are significant, ranging from 10-20 per cent in most cases and almost across Sun’s bouquet of regional channels on the back of “sustained viewership and consistent higher ratings”. The broadcaster had also made similar rate hikes in January last year. The rate hikes, for two successive years suggests that the network’s clout with advertisers has not diminished. It also reinforces the trend of television advertising spends growing at a faster pace for regional television channels.

The Sun Network, with a bouquet of channels straddling all four of the Southern regional languages, appears best placed to capitalise on this trend.

The company has also hiked the slot fees payable by content providers to the broadcaster.

The company generally provides a portion of its advertising inventory to content providers for a fee, who, in turn, market airtime slots to advertisers.

The strong momentum in advertising rates should also serve as an incentive for leading content providers to continue producing for the network.

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