Advertisers, agencies and channels are feeling the pinch of demonetisation as several advertisers have started sending cancellations to channels on existing deals on the back of the currency crunch.
Channels are in turn trying their best to salvage the situation, whether it is by asking advertisers to not postpone slots instead of cancelling thus attempting to keep money in their kitty. Some channels are also refusing to accept cancellations, while some are taking refuge and trying their best to leverage the 14 day cancellation clause.
Whilst the TV industry is feeling the heat of demonetisation, top executives among TV channels and media agencies feel that this is going to continue for a while as they do their best to grapple with the situation.
Whilst Retail and FMCG are some of the biggest industries cancelling their ROs, other smaller players are also following suit.
The Indian Broadcasters Foundation has also issued a letter to advertisers/advertising agencies.
The letter states, “All payment transactions between IBF members and Advertisers/Agencies are done electronically,or by way of cheque/draft payments through proper banking channels and hence there is no question of cancelling confirmed deals on the pretext of demonetization.”
The IBF Board has issued a general advisory to all IBF members to inform their respective agencies/clients to maintain the sanctity of their contracts/deals, already signed between the clients/ agencies/broadcasters including, long term and short term deals, as well as deals confirmed by issue of Release Orders, by performing their obligation under these contracts.