Top Story


Home >> Media - TV >> Article

We’re losing 90% ad revenue per day due to ad blackout: Uday Shankar

Font Size   16
We’re losing 90% ad revenue per day due to ad blackout: Uday Shankar

Television viewers were in for a surprise on May 1, 2013 when they found almost no ads interrupting their favourite TV shows, barring some channel promotions and the odd ad now and then. This ad blackout by broadcasters is following advisories sent out by the Indian Broadcasting Foundation (IBF) to its members to shift from the current system of gross billings to net billings.

The move comes on the back of the notices sent by the Income Tax Department to broadcasters demanding tax payable on the 15 per cent difference between what broadcasters bill and their net realisation. Consequently, starting with the April billing cycle, broadcasters have started sending bills to ad agencies on net amounts. Ads that are associated with gross billings have been discontinued.

Star Plus and its other sister channels have been running a ticker that states: “Advertisements are not running on this channel because advertising agencies have refused to accept revisions in billing methods which are seen as flawed by tax authorities. We regret any inconvenience, but the STAR Group is committed to doing business with the highest standards of compliance, which reflects the true commercial arrangement between advertisers and broadcasters.”

Talking exclusively to exchange4media, Uday Shankar, CEO, STAR India said, “It is difficult to indicate for how many days this blackout will last. But it will continue till the billing discrepancy is sorted out. We are losing 90 per cent of our ad revenues every day. All the brands that have not agreed to net billing have been dropped.”

Gross billings have been followed by the industry for the last 15 years. But around a month back, some broadcasters received notices from the Income Tax Department stating that they were not providing Tax Deducted at Source (TDS) on 15 per cent agency commissions in their billings.

However, the IBF believes that this 15 per cent is a “fictitious” figure and hence, was not included in the transactions.

Even as viewers are getting to watch their favourite shows with short and minimal ad breaks, it remains to be seen for how long the standoff between the broadcasters and the advertisers will remain and what solution is worked out, as the per day revenue loss is mammoth.

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video

Gopalan currently leads the Indonesia operations of P&G, and will be taking over from April 1st, 2018 as Al Rajwani is set to retire after 37 years with the company.