Advertisers give channels a 10-day ultimatum

Television channels are in neck-deep trouble as advertisers have now issued an ultimatum asking the general entertainment channels (GEC) to sort out their rift with producers and get fresh programmes on air within 10 days.

The advertisers have told the channels that they are interested in investing their money only in fresh content, but will back the channels for now. In case re-runs of old episodes continue and no breakthrough is achieved, a bulk of advertisers will pull their investment out of the channels. This would be a body blow to the Indian television industry as the channels’ advertisement revenues will nosedive.

“A decision has been taken at the highest level. There was a crisis meeting held by the Advertising Agencies Association of India (AAI) in which the advertisers unanimously decided to talk to the channels and give them an ultimatum of around 10 days to try and sort out their problems with producers. Some advertisers have gone ahead and cracked some one-on-one deals with the channels who may have revised their rates for old repeat entertainment and infotainment shows,” said a source in the advertising industry.

Another source said that spot bookers are safe as they will assess the market and invest in profitable new avenues. “However, those who have made bulk bookings are the most affected. They are in damage control mode and are in no mood to shell out the same money with which they have booked their spots as there will be no fresh content on air
and obviously viewers will change channels.”