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As far as revenue is concerned, KBC2 (with a fixed 85-week
run) is expected to rake in, as per market estimates, on an average,
Rs 30 million in ad revenues per episode. The total cost for mounting
KBC2 is approximately Rs 850 million, which includes acquisition
and marketing costs as well as host and bollywood icon Amitabh Bachchan’s
remuneration. Theoretically speaking, if Rs 850 million is spread
across 85 episodes, cost per episode comes to Rs 10 million. Hence,
the total ad sales revenue generated solely from KBC2 could
be pegged at Rs 2,550 million with actual profits standing somewhere
around Rs 1,700 million.
There are also the ramp ups on distribution declarations that need
to be factored into any revenue projections though. One would expect
the KBC "pull effect" to have a significant positive
impact on the network's declared subscriber base.
From an advertiser’s lookout, however, what KBC2 offers
is a new opportunity. According to information available with Indiantelevision.com,
Star has managed to rope in Nokia as an associate sponsor and the
deal has been cracked at Rs 150 million. Airtel and BSNL have come
on board as the SMS and landline phone partners, respectively, on
a revenue sharing model.
In the weeks to come, Star will be roping in five more associate
sponsors – one from the automobile segment, two from the FMCG sector
and one each from the white goods (the likely toss up is between
LG and Samsung) and the two-wheeler categories.
That Star will put all its marketing muscle behind KBC2 goes
without saying. What the public and the trade are waiting to see
is just what the media and promo blitz will entail. Comparisons
will no doubt be drawn to its predecessor KBC but that is
only to be expected. According to a leading pink paper, Star's creative
agency O&M has created 11 commercials around KBC2 all
featuring the Big B.
It is also interesting to note that all these strategies would
not have much bearing if advertisers are not willing to spend. Will
advertisers increase ad spend because of KBC2 or divert funds
from Star Plus?
Star seems to have figured this out up to a certain extent. Taking
into account that existing advertisers don’t divert funds from their
current programmes, a strategy could be to approach clients whose
spends on the network is presently low. If one looks at the brands
mentioned above, very clearly these clients have had a cricket skew.
Will KBC2 be to Star what Indian Idol was to Sony
--- a short-lived euphoria? Or, will KBC2 actually move both
the revenue and programming game plan into a next phase? Only time
would answer such queries, but let’s not forget that KBC is
a different ball game altogether. Unlike the international show,
where the host was not such an attraction, while the concept was,
the Indian version has got two hooks --- Bachchan’s ageless popularity
and, of course, an increased prize money of Rs 20 million to be
won.
Also Read:
Star
takes ad rates to new highs for 'KBC 2'
Pre-KBC,
Star Plus starts weekend slot facelift
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