Cinevista, Adhikari have nothing to crow about in dealings with
DD
(Posted on 30 June 2001, 11.50 pm)
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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