THE BATTLE OVER SPORTS MARKETING AT PRASAR
BHARATI
A spat has broken out between the Prasar Bharati
- the holding company of state-owned broadcaster Doordarshan
- and a consortium of private companies on the issue of
marketing of airtime during the telecast of the cricket
World Cup on DD next month. The consortium led by sports
marketing firm Stracon had assured DD of minimum advertising
revenue of Rs 260 million for the 11 matches that the latter
has the rights to and had signed a contract to this accord.
But allegations were hurled that Stracon was
ripping off the broadcaster and that the the minimum commitment
should be raised to about Rs 350 million, which had been
given by another member of the consortium, Nimbus. Nimbus,
it is alleged didn't bag the airtime sales deal despite
quoting a higher guarantee amount to DD and it dropped out
of the consortium. In fact, the dispute about the contract
had even reached the courts.
Stracon promoter Siddhartha Ray denies that
he is cheating on DD saying that his accounts are open for
inspection and that everything is above board as far as
his dealings with DD are concerned. This despite some newspaper
reports that the Prasar Bharati acting CEO O.P. Kejriwal
was in an aggro mood and would force Stracon to up the ante
or drop the deal.
At the time of writing, Ray says his company
is still on board to market the biggest televised event
in India.