Sun TV Network is looking at readjusting its advertisement rates to bring back the growth rate in advertisement revenues it had earlier, even as the number has seen a drop for the last quarter. The company would also conduct negotiations with the State-government run Arasu Cable to continue its offerings through Arasu Cable TV distribution system.
Speaking to the analysts, Sun TV Group Chief Financial Officer S L Narayanan said that the company is confident that it would go back to the growth rate of 12% though it had some difficulties in calibrating the rate hikes which required. However, the company added that compared to some other channels, its advertisement revenues performed better.
The company has seen a decrease in advertising revenue to the tune of 4.45%, to Rs 233.56 crore during the quarter ended September 30, 2013, as compared to Rs 244.45 crore for the same period of previous fiscal year.
To a question by an Analyst whether the company need to renew the agreement it signed last year with the Tamil Nadu Arasu Cable TV Corporation Ltd, an undertaking owned by the Government of Tamil Nadu, to enable availability of the Company's channels on all cable TV distribution systems run by Arasu Cable across the state of Tamil Nadu, is still holding as the deal was for a year, the company officials said that the cooperation with Arasu is still on and the company would be renegotiating with Arasu Cable to continue the services.
