The Indian Broadcasting Foundation (IBF) has said that its directive regarding levy of an input cost inflation surcharge on TV media had been widely welcomed by its member broadcasters, a majority of whom had chosen to heed the advisory. In a statement issued by IBF, its Director-Finance, Naresh Chahal, said, “We want to emphasise that the surcharge only partially negates the effects of cost inflation that broadcasters have suffered even as audience deliveries have grown very strongly, thereby ensuring that TV continues to remain the most efficient and most effective advertising medium in India.”
IBF further claimed that several advertisers were also coming forward to accept the surcharge. “Member broadcasters have been reporting receipt of confirmation letters from these advertisers and expect numbers to grow substantially over this weekend,” Chahal said. It may be recalled that the Indian Society of Advertisers (ISA) in a recent press statement had rejected IBF’s directive.
IBF has maintained that its member broadcasters believed that a system wide value correction was overdue and this initiative, therefore, came at the right time. It further said that the Foundation was aware that certain members were proposing to defer enforcement to a later date. “In particular, this includes some of our member channels from the four Southern states. The IBF is issuing a separate advisory in this regard that will suggest another date for their implementation of the input cost inflation surcharge,” Chahal said.
“The differing responses of our members to the original advisory is conclusive evidence of their ability and intent to act independently and in accordance with their unique business situations,” he added.
Meanwhile, IBF has said that all advertisers who accepted the surcharge no later than 6 pm on Monday, October 15, 2007, would receive a surcharge waiver for the first month, that is, October 16 to November 15, 2007. This will ensure that these advertisers continued to enjoy a surcharge-free status right through the Id, Dussehra and Diwali festival season.
ISA, IBF lock horns over 25 pc input cost surcharge on TV ad rates
IBF imposes input cost inflation surcharge to offset uneconomic growth