Television

Cinevista, Adhikari have nothing to crow about in dealings with DD

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Private broadcasters just don't seem to have anything going for them on the Doordarshan front. Sri Adhikari Brothers Television Network (SAB) and Cinevista Communications, both major suppliers of software for DD1, have blamed lack of demand from advertisers for the poor results the companies registered in the financial year ended 31 March 2001.

While SAB managed to stave off losses (net profit Rs 103.7 million down 40.51 per cent from last year's RS 174.3 million), Cinevista communications has posted a net loss of RS 119.9 million.

SAB's total income stood at RS 927.9 million as against RS 400.1 million in the financial year 2000. A statement put out by SAB says: "During the year under review, the policy of Doordarshan related to additional spot buys on various programmes has put heavy financial burden on the company. The company from time to time, has put forth its case with Doordarshan for rationalisation of commercial terms and for withdrawal of additional spot buys."

As the matter could not be resolved till 31 March 2001, the company has decided as prudent accounting practice to charge the same to the P&L account, which has resulted in reduction of profitability."

Cinevista Communications fared far worse, with a net loss of RS 119.9 million in only the first year of its listing on the bourses. Last year, it recorded a net profit of RS 90 million.

Cinevista's net sales stood at RS 396.7 million while the cost of production and telecast stood at RS 394.1 million.

It blamed the results as being due to the erosion of viewership of Doordarshan. Continuing downturn in demand for air time on DD amongst advertisers has led to erosion in selling volumes and selling rates, it said. As a consequence over 18,000 seconds of air time remains unsold on the various programmes that were telecast on DD.

Cinevista also wrote off all the expenses related to the weekly game show Knock-Out, which was scheduled to be telecast on DD-1 from 28 January 28. The show never went on air and Cinevista has hauled DD to court over this matter. A writ petition for the same is pending in the high court in New Delhi.

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