Live score: Rs 500 cr & slog overs left
SET India, the official broadcaster of the ICC Cricket WC, had sold over Rs 500 crore worth of airtime.
NEW DELHI: Sony Entertainment Television (SET) India, the official broadcaster of the ICC Cricket World Cup 2007, had sold over Rs 500 crore worth of airtime, including last year’s Champions Trophy, on last count (Sunday evening). Again for SET undoubtedly, but a bigger one for the media agency consortium comprising Dentsu India, Zenith Optimedia and Starcom. Here’s how.
Led by Japanese agency Dentsu, the consortium had signed a Rs 500-crore contract with SET last September, pertaining to TV advertising inventory (total ad minutes) for the Champions Trophy and the Cricket World Cup 2007. Though neither SET nor Dentsu would ever concede that there was a contract in the first place, sources in the know said the deal—first of its kind in India—involved the consortium underwriting SET’s cricket inventory for a minimum of Rs 500 crore and getting a percentage of Champions Trophy & World Cup 2007 ad time, at a 10-15% discount, as its underwriting fee, which it could sell in the market for a profit. Had SET failed to sell its cricket inventory for less than Rs 500 crore, the trio would have had to pay from their pocket and make up for the difference. Now that SET has generated ad revenues of over Rs 500 crore and slated to reach Rs 560-580 crore (of which the World Cup would account for 70%), SET will share the excess revenues with the consortium. Dentsu India chief Sandeep Goyal was unavailable for comment.
Led by Japanese agency Dentsu, the consortium had signed a Rs 500-crore contract with SET last September, pertaining to TV advertising inventory (total ad minutes) for the Champions Trophy and the Cricket World Cup 2007. Though neither SET nor Dentsu would ever concede that there was a contract in the first place, sources in the know said the deal—first of its kind in India—involved the consortium underwriting SET’s cricket inventory for a minimum of Rs 500 crore and getting a percentage of Champions Trophy & World Cup 2007 ad time, at a 10-15% discount, as its underwriting fee, which it could sell in the market for a profit. Had SET failed to sell its cricket inventory for less than Rs 500 crore, the trio would have had to pay from their pocket and make up for the difference. Now that SET has generated ad revenues of over Rs 500 crore and slated to reach Rs 560-580 crore (of which the World Cup would account for 70%), SET will share the excess revenues with the consortium. Dentsu India chief Sandeep Goyal was unavailable for comment.
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