Indiantelevision.com Team

(26 March 2007 10:00 pm)

MUMBAI: In response to industry buzz that advertisers who bet big monies on the Cricket World Cup would, after India's defeat to Sri Lanka, be initiating a re-negotiation with the broadcaster Sony Entertainment Television (SET), the Indian Broadcasting Foundation (IBF) and Advertising Agencies Association of India (AAAI) have issued a joint statement to put all such speculation to rest.

In support of the above mentioned terms, SET India EVP sales Rohit Gupta asserts that once contracts have been signed by all constituents, they must be honoured. However, Madison Communications chairman and MD Sam Balsara believes that while that truism exists, he states, "Considering the magnitude of the issue, Sony should facilitate a joint representation of the ISA (Indian Society of Advertisers) and AAAI directly to the ICC in the interest of the advertiser and the long term growth of the game."

The guidelines put forth by the IBF and AAAI joint committee are as follows:

* All the contracts are bilateral and should be governed by what the parties have agreed to in writing.

* In committing and agreeing to any media buying deal, clients and their agencies always face either an upside or downside as the event or property unfolds. This is not unique to a property like cricket. Specifically, had India done well, no advertiser would have been asked to pay extra for that.

* Cricket packages when bought or sold are not necessarily linked to the fortunes of the Indian Team alone. All constituents/parties to the deal therefore cannot renegotiate deals on the basis of the performance of a particular team alone and are expected to honor their respective contracts.

Gupta feels that as a broadcaster, Sony was unnecessarily being targeted. Yet if India had reached the final round (as was the case the previous World Cup) the upside to that would not be in his favour. "Therefore, how can the downside be targeted at me?"

According to an industry observer, however, public posturing apart, there will be some amount of give and take between the "aggrieved" advertisers question and Sony. But how that compromise will be worked out is still unclear. But under all circumstances, contracts previously inked must be honoured.

GroupM CEO India and COO South Asia Vikram Sakhuja, whose clients like Pepsi and Nokia have bet big on cricket, however, refused to offer any comment on the issue.

It's interesting how tables are upturned when the fortunes of cricket are not in our country's favour, nevertheless it is true that the losses the broadcaster will have to incur will hit hard, especially with respect to the 5 per cent of the inventory that was put aside. And that's just a small part of the estimated hit that the industry will have to collectively bear following India's pathetic display at this most hyped of World Cups. Rs 1.6 billion is what corporate India has reportedly predicted will be the losses following India’s ouster from cricket's biggest event.

But on a more positive note, Gupta says that the sport is far bigger than that and in a couple of days, when an interesting match is aired, it will definitely lure viewers because after all, it is the World Cup and not a small tourney. Brave talk no doubt, but there's no gainsaying that there are many ifs and buts riding on that talk.