Star Stops Discounts To Bulk Advertisers On Two Channels

Star TV has decided to become aggressive. It has decided to stop giving discounts to bulk advertisers on Star Plus and Star Movies two channels which are looking up as far as advertising and sales are concerned.

At a high level meeting of Star TV executives here in Delhi, convened to take stock of the ad sales situation, it has also been decided now that the product has been established, from next year the Star Entertainment (Star Plus and Star Movies) would pull no punches and sell on the USP that it offers quality programming.

According to company sources, the usual practise of giving 20-30 per cent discount to advertisers giving business over $ 50,000 has been done away with.

 

The supply and demand factor has been responsible for this as the ad sales team has done pretty well, the sources said, adding, Last year this time the ad sales figures stood at approximately half a million dollar which been increased by almost four times this year.

Star TV networks investment level in the whole of Asia till June 30, 1997 is about $ 1.5 billion (1.5 billion dollars) while operational losses as on June 30, 1997 stood at over $ 100 million. Rupert Murdochs News Corp holds over 60 per cent equity stake in Star TV.

Yesterday it was also decided in principle that after doing away with discounts, the ad rates will be increased by the end of the year. earlier on an average a 10-second spot was available on Star Plus for about $ 300. It will now be available for about $ 400.

The idea is to offset some of the investment made in South Asia in the form of acquiring original programming by raising the revenue from ad sales, the sources said.

The meeting was attended, amongst others, by Star TVs India-based ad sales executives and those from Hong Kong like Robert Bland, director ad sales Star TV, Bruce Churchill and David Haslington. The meeting gain significance as News Corps chief operating officer Chase Carey, along with a team of top News Corp and Star TV officials, is in town to take stock of the investment situation in South Asia.

According to Star TV sources in Hong Kong, Star Plus Indianisation process by acquiring original programmes in the last one year from October 1996 has cost the Hong Kong-based broadcaster over Rs 100 crore. The proposed direct-to-home TV service project for South Asia is estimated to cost $ 500 million, out of which in the last one year approximately $ 220 million has already been spent on leasing seven KU-band transponders on PAS-4 for a period of 10 years. The DTH has been a non-starter in India because of a government notification which temporarily bans DTH till the broadcast law is put in place.