India’s shock exit from the World Cup over the weekend could have repercussion on Indian host broadcaster Sony Entertainment Television Asia.
According to Business Standard, advertisers are putting in requests for bonus spots or discounts on the rates they have been charged during the World Cup period on Sony’s MAX, SAB and Pix channels.
Srinivasan Swamy, president, AAAI, said that concessions might be offered to advertisers. Though advertisers cannot force re-negotiations on ad rates, as they are bound by contracts, the dip in viewership and waning interest among Indian viewers is irking them.
Anil Khera, CEO and director, Sansui, a brand managed by Videocon, was more candid. “We are in the process of negotiating with SET MAX for 50 per cent reduction in the total bills,” he said.
Prasad Narasimhan, vice-president, marketing, TVS Motor Company, added that his company was taking up the issue of a revision in advertising tariffs with the channel.
Media-buying agencies shared the sentiments of their clients. A senior executive at ZenithOptimedia said, “We will meet SET India on Tuesday. We are concerned about India۪s early exit as we have put about Rs 90 crore in SET MAX. We might look at spreading this spend much beyond the World Cup, but commenting on the situation will fuel speculation at this juncture.”
As for Sony, Rohit Gupta, executive vice-president, SET India said, “It۪s unfair on the part of advertisers to ask for discounts.” However, he did not deny that advertisers are approaching the official broadcaster for exactly that purpose.