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Leading media and entertainment company, Star India, today said that it has increased advertising rates for its bouquet of channels by 20 per cent on the back of a rise input costs.
The new rates would come into effect from April 26, a senior company official said.
“The increase in rates was necessitated by spiralling input costs in the form of talent and production costs and increased investments in technology, advanced delivery and distribution platforms,” the company’s Chief Operating Officer, Mr Sanjay Gupta, said here.
He said the input costs had risen by 25—30 per cent in the last two years.
With the increase in ad rates, Star Network, which enjoys a 16 per cent market share, is expecting a 15—16 per cent growth in its revenues in the next fiscal, he said.
“We expect our revenues to grow by around 15—20 per cent in this fiscal as compared to 12—13 per cent in the last year. Since advertisements are the major source of income for this industry, the increase in rates will help us achieve the target,” Mr Gupta said.
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