Sun TV to increase ad rates after two years

MUMBAI: For almost two years Sun TV Network had left its advertising rates untouched as the market stayed sluggish. But effective 1 January, the southern broadcasting major will up its rates as it forecasts a 20 per cent jump in advertising revenues for the full-fiscal.
For its Tamil channels, the ad rates will go up between 9-33 per cent. The increase in ad rates will be across Sun TV, KTV, Sun Music, Sun News, Chutti and Adhitya.

"We are looking at an ad revenue of Rs 6.9 billion for FY‘10, up 20 per cent from the previous year. The last time we had an ad hike was in February 2008. The downturn prevented us from going for a rate hike in FY‘09," a source in the company tells
Sun is accordingly increasing the slot fees (broadcast fees) received from the content producers.

The changes in ad rates for other general entertainment channels of Sun TV Network - Gemini (Telugu), Udaya (Kannada) and Surya (Malayalam) - will be announced by the company within a fortnight. 
So how does Sun TV‘s rate hike impact the market? "The market was working at a discounted rate. Sun was not selling at their required premium. With the market leader upping rates, it will be good for everybody," says Star India president (South) Jagdish Kumar.
Shares of Sun TV closed Tuesday at Rs 337, up 1.16 per cent.

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