SET not to renegotiate ad contracts

Hardening its stand against advertisers seeking revision of contracts after India's debacle in the cricket World Cup, broadcaster Sony Entertainment Television (SET) today said it will not review the agreed deals.

"There is no question for any renegotiation. We have signed contracts for the long term which are not terminable and there is no scope for negotiations," Rohit Gupta, executive vice president (revenues), SET told PTI.

Hinting that the demand for revising the advertising rates after India's early exit from the World Cup, which has resulted in drastic drop in viewership, was unfair, he said the reports of SET officials meeting advertisers was not meant for renegotiation of the sealed contracts.

"We do not control team India's fortune or luck, so advertisers cannot ask us to reduce rate after the team's exit. If India were to be in finals we would not have asked them to pay double," Gupta said.

Advertisers are hoping the channel would consider their demands for revising the rates following drop in viewership.

"From advertisers' point of view, both parties acknowledge there has been value erosion after India's exit. They (Sony) have to help advertisers to overcome problem," Sundar Raman, managing director, MindShare said.

MindShare has clients such as Pepsico and Motorola among others who have booked airtime on SET for the World Cup.

According to industry estimates, a 10-second slot is priced at around Rs 1.5 lakh and SET has raked in about Rs 500 crore from ad deals for the ongoing World Cup.