In a bid to find the 'right value' for what it delivers, STAR India has decided to increase its advertising rates by 20 per cent with immediate effect.
The new rates will be applicable to all non-joint venture channels within the network, such as StarPlus, STAR One, Channel [V], STAR Jalsha, STAR Pravah, STAR World, STAR Movies, NGC and the Fox channels.
"The TV broadcasting space has seen a 28 per cent increase in C&S homes in the last two years and we have grown by 30 per cent during the same period. While 60-70 million people are being added every year to the television space, the cost per thousand has dropped by as much as 38 per cent," he says.
It is interesting to note here that in 2008, the cost per thousand was approximately Rs 20 and in 2011, it has fallen to about Rs 12.30 per thousand people.
Kevin Vaz, president, ad sales, STAR India, says, "Today, while the input costs have gone up by at least 25-30 per cent, the advertising rates remain highly disproportionate and low. This rate increase of 20 per cent is just a part correction in lieu of the phenomenal growth the network has shown in the past two years."
As per media experts, with the 20 per cent increase, advertisers should now pay Rs 1.8-2 lakh per 10 seconds for a top-rated show, instead of the Rs 1.5-1.75 lakh that they were paying earlier.
However, will this mean that advertisers will have to revisit their long-term and existing contracts with the network?
"No!" says Vaz. "We will continue to stick to the commitments that we have already made in the long-term contracts. The rates will be applicable to the new advertisers coming on board."
Currently, STAR's regional bouquet contributes about 20 per cent to the overall revenue of the network, while the English channels contribute about 10 per cent.