MAM
Indian HD TV channels: attracting brands, and media agencies
MUMBAI: There was a time not so long ago when Sony Entertainment Television‘s Six HD channel was getting almost no TV commercials. It was the place where you got to watch sports almost uninterrupted.
No more.
With the Sony Entertainment Network and other TV networks focusing on increasing their respective HD TV channels‘ reach, and MSOs and cable TV operators and DTH operators beginning to offer and attracting subscribers for the clearer HD TV channel services, it is no surprise to see TVCs on the trot on HD channels.
Says Sony Six and Max executive vice president and business head Neeraj Vyas: “Advertising has started in HD and it will eventually catch on, after all everyone is looking to do business. You can’t be running a channel which is free of advertising. Once subscriptions settle down post digitisation, we will witness an even greater rise in the number of ad spots on HD TV channels as well.”
Among the brands which have started advertising on Sony Six HD during the ongoing Pepsi IPL6 include: Pepsi, Parle Krackjack, Raymond, Matrix, Renault Duster, LG, Samsung Galaxy Note 4, Vicco, Frooti, Godrej Good Knight and Coke.
Media industry sources reveal that advertising on HD entails a fraction of the cost that is usually spent for TV spots on regular standard definition channels. Says a media agency CEO: “If a media buyer wants to buy ad spots for all the 76 matches on Max for IPL6, the rates will be approximately Rs 4,25,000 for 10 seconds and for Sony Six HD the rates will be Rs 50,000 for 10 seconds.”
Vyas agrees that TV commercials rates today are far lower on HD transmission than standard definition television ad rates, but that is because of low HD TV penetration rates in India. “My estimate is that there are about 1.2 to 1.4 million HD TV subscribers in India,” he says. “But it is, however, a step in the right direction because everything globally is moving towards HD.”
“The fact of the matter is that advertisers and agencies should look at using HD channels more to air their TV commercials,” says a media observer. “For certain brands and categories, they are ideal vehicles to reach out to selected targeted audiences.
HD subscribers are normally well-heeled, have travelled, have large disposable incomes, are looking for better things out of life, and are willing to pay for them. Hence, automobiles, expensive phones, travel services, airlines, computers and tablets, high end fashion brands would do well to use HD channels to advertise.”
Estimates are that HD TV channel advertising accounts for barely a quarter per cent of ad spends on TV in India. But the increasing uptake of HD TVs and channels by consumers indicates that it is a medium that is going to engage media agencies and advertisers.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
