Colors to hike ad rates by 30% from July 2013

The decision comes in the wake of TRAI's 10+2 ad cap to be implemented from October. The hike will not impact existing deals

BestMediaInfo Bureau | Delhi | May 31, 2013

In the wake of TRAI's 10+2 minutes ad cap to be implemented from October 2013 in a phased manner, Colors has become the first television channel to announce a hike in ad rates from July 2013. The ad rates on Colors will go up by 30 per cent.

Raj Nayak, CEO, Colors, said, “The rationale is that we as a broadcaster have still not seen the full impact of digitisation in the form of either a fair share of reduction in carriage fees or subscription revenues. Given that we are a responsible broadcaster and intend to follow the guidelines set by the regulator, we believe that to stay on course and in order to meet the revenue objectives, we are left with no option but to increase our ad rates.”

Nayak further explained that in the current scenario there is already a shortage of ad inventory on GEC channels with most of them having oversold. With the cap coming into play, the pipeline is only going to get narrower and change the supply-demand ratio.

“We share a tremendous relationship with our advertisers and all existing deals will be honoured. We will take precautions to try and balance the price hike in a manner that works for all stakeholders,” concluded Nayak.

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