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Sun TV Network eyes revenue growth of 15-20 per cent with ad rate hikes

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | December 09, 2009
The network has increased ad rates for Telugu, Malayalam and Kannada channels

Sun TV Network, the leading broadcaster in the south, has announced hikes in advertisement rates for its Telugu, Malayalam and Kannada channels. The increased ad rates will come into force from January 2010.

The move follows Sun TV Network's announcement last month regarding hikes in advertisement rates for its flagship Tamil channel, Sun TV, and other Tamil channels such as KTV, Sun Music, Sun News, Chutti and Adhitya.

& #BANNER1 & #The broadcaster is eying an annual revenue growth of 15-20 per cent with ad rate hikes across its network.

According to Ajay Vidyasagar, chief operating officer, Sun Network, primarily three reasons are responsible for the hike in advertisement rates for the channels. He says, "Firstly, the last hike in advertisement rates was two and half years ago. Secondly, our channels continue to be strong performers in Andhra Pradesh and Karnataka. We are No.1 and No. 2 GEC (general entertainment channel) and movie channels respectively in these markets. Thirdly, the move is in line with the immense value that we deliver to our advertisers."

The broadcaster has announced a hike ranging between 6 -16 per cent for its Telugu channel, Gemini TV. The hike in advertisement rates for its Kannada channel, Udaya TV, is up to 10 per cent. At the same time, in the case of its Malayalam offering, Surya TV, the increase in advertisement rates is up to 5 per cent, applicable on selective programmes.

Vidyasagar informs that the hike in ad rates for Telugu, Malayalam and Kannada channels has been announced after keeping all stakeholders in mind, after a fair degree of dialogue to decide the percentage of increase in the rates.

For its Tamil channels, the hike was in the range of 3-33 per cent. Like last time, the Sun TV Network is set to increase the slot fees (broadcast fees) received by it from content producers.

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