Top Story


Home >> Media - TV >> Article

IBF imposes input cost inflation surcharge to offset uneconomic growth

Font Size   16
IBF imposes input cost inflation surcharge to offset uneconomic growth

The Indian Broadcasting Foundation (IBF) has unanimously chosen to recommend implementation of a blanket 25 per cent input cost inflation surcharge on all rates that are currently in force by its member broadcasters with all their customer accounts across the country to partially offset the impact of the cost inflation.

An official communiqué informed that following a meeting in Mumbai on October 5, the IBF recommended that the surcharge take effect from October 16, and apply not just on new deals that are executed after this date, but also on continuing deals that have been previously executed.

IBF President, Jawahar Goel, said, “This correction was long overdue and will enable our member broadcasters to continue delivering compelling, high quality content to millions of viewers even as advertisers continue to enjoy one of the world’s lowest cost per television contact.”

Following the meeting held to discuss and determine an appropriate approach to stem and offset the impact of the cost inflation, an advisory is being issued by the IBF Secretariat to all its members.

The communiqué stated, “The decision was taken by the IBF in view of the uneconomic advertising rates in the Indian television industry. Though the number of cable and satellite homes had grown from under 40 million to over 70 million homes across India in just five years, over the same period the broadcast industry has had to deal with flat prices for its advertising inventory on the one hand, and a galloping cost push on the other, as all manner of content – entertainment, sports, film, and even news gathering – become rapidly more expensive.”

The IBF noted that the rich diversity of content offered in the television bouquet that spanned news, entertainment, sports, infotainment, wellness and spirituality, children’s entertainment and many others, had resulted in strong growths in reach and time spent on the medium.


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Meanwhile Radio City and Radio Mirchi ruled Bangalore and Kolkata respectively

Pankaj Belwariar, who recently resigned from the post of Vice President Marketing at Sakal Media Group, has now joined Rajasthan Patrika as the Head of Marketing in North and East region.

A look at Vivo’s ad campaign with their all-new brand ambassador Aamir Khan, which has fetched them a whopping 21 million views on YouTube