Television channels are planning to charge more from advertisers. The rate hikes are likely to be effected in the middle of April, when there will be a large number of fresh contracts under negotiation. Many existing contracts end with the financial year.
The channels point out that while the number of cable and satellite homes has nearly doubled in the last four years, the rates have not gone up proportionately. There has been some shake-up in viewership with the introduction of the conditional access system (CAS) in some cities and advertisers say many viewers have logged out of pay channels. However, this is seen as a temporary aberration and analysts believe that general entertainment channels are at present under-priced.
Now is an opportune time, as India is out of the cricket World Cup and eyeballs are thirsting again for general entertainment. Advertisers, shaken up by the cricket debacle, will find it difficult to withstand a hard bargain from channels.
Source : Business Standard