Balaji Telefilms has deferred its entry into telefilms production in the absence of their demand from private satellite channels. The company had plans to get into telefilms segment in the second or third quarter of the current financial year but will be unable to make a breakthrough.
Balaji Telefilms will not get any further rate hike from Star Plus and Sony Entertainment Television for its leading programmes this Fiscal. The company had got a rate increase of 25 per cent from Sony in June and 24 per cent from Star in July.
Balaji still expects to have a 60 per cent increase in turnover and a 95 per cent growth in the bottomline. According to sources, the realisation per hour of programming doubled to Rs 7.2 lakh in the fiscal ended March 31, 2001, from Rs 3.6 lakh in March 31, 2000.
Balaji expects Star to continue accounting for 40 per cent of its total revenues while Sony’s contribution would improve from 18 per cent to 25 per cent. But there would not be any more incremental volume growth from Star and Sony this year.
Analysts say the real test for Balaji would come in the next financial year even as the production house is diversifying into new genres and incremental volume growth starts coming not from the leading channels but from Sahara and regional channels.