Prasar Bharati
wants bigger share of cricket telecast pie
source:www.http://dailypioneer.com |
Faced with heavy losses by broadcasting cricket matches on Doordarshan
under the present system of revenue sharing, the Prasar Bharati has
recommended amending the Sports Broadcasting Signals (Mandatory Sharing
with Prasar Bharati) Act 2007 so that it could get equal share of the ad
revenue.
At present, the private rights holder has to mandatorily share the signals
with the government broadcaster, but it offers only 25 percent of revenue
to Doordarshan keeping the remaining 75 percent for itself. The Prasar
Bharati now wants that it should be amended to ensure that the public
broadcaster gets 50 percent of the revenue for telecasting cricket
matches.
“Generally, Doordarshan earns about Rs 2.5 core to Rs 3 crore per day as
advertisement revenue but when cricket is telecast the general programming
is cancelled resulting in huge loss of revenue,” Prasar Bharati sources
told The Pioneer.
Citing the example of the recent India England cricket match series the
rights for which was sold to ESPN at the minimum guarantee of Rs 17 crore,
the sources said that the private entity could not sell the proposed 6000
seconds of advertisement space. Now even if the company will give 25
percent of Rs 17 crore to Doordarshan it will amount to Rs 4 crore while
the actual loss of advertisement revenue for the Doordarshan is at least
Rs 13 to 15 crore for the match series, the sources claimed.
Though Doordarshan does not want to deprive the subscribers of cricket
matches, it wants a fair share so that the revenue loss to the public
broadcaster could be reduced, they said.
The Prasar Bharati has sent its recommendation to the Information and
Broadcasting ministry, but the amendment bill is not likely to be tabled
in the coming Winter Session. Apart from the procedural delays, the public
broadcaster fears that private companies which buy the broadcasting rights
will oppose this suggestion.
The apprehension is based on the fact that the private parties had even
gone to court in 2007 as they felt that Section 3 of the Sports Act was
against their interest. Under this, it is mandatory on the part of private
entities to share signals with the Prasar Bharati under a revenue sharing
agreement. Though they had opposed the Act tooth and nail, the government
remained firm that they could not be allowed to deprive the subscribers of
the cricket matches by telecasting them only on private channels, the
sources pointed out.
The government’s argument was based on the ground that if cricket
broadcast is left alone to the private channels it would deprive the
people in rural areas who are generally dependent on Doordarshan. Also,
the competition from the public broadcaster checks the tendency among
private channels to become paid channel which would further restrict the
viewers getting access to cricket matches.
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