Sun TV to recalibrate ad rates

Sun TV Network may recalibrate its ad rates to restore revenue growth.

It had reported a 4.5 per cent drop in advertising revenue for the second quarter ended September 30.

Sun TV, has been revising its ad rates across slots and programmes progressively since July to offset the impact of TRAI’s directive imposing a 12-minute-per-hour limit on TV advertising.

However, “we had some difficulties in calibrating the hikes that was required,” said S.L. Narayanan, CFO.

In an hour-long conference call with analysts on the company’s results, he said the migration will take a while. And hence, the drop in ad revenue “should be seen as a blip, a mere aberration, and not something as secular shift”. Sun has an extremely strong franchise, and it can arrest the drop and restore 12 per cent ad revenue growth, he said.

There are about 54 million households in the South, and over 250 million people. Brands have to compete with each other to reach this audience.

Sun TV, being a dominant player in the region with strong ratings, can bounce back comfortably, he added.

Source: http://cablequest.org/news/digitization-news/item/3532-sun-tv-to-recalibrate-ad-rates.htmlSource: http://cablequest.org/news/digitization-news/item/3532-sun-tv-to-recalibrate-ad-rates.html