New Delhi, March 27: India`s premature exit from the cricket world cup in West Indies has created a fresh rift between advertisers and broadcasters, with the Advertising Agencies Association of India (AAAI) asking Sony to consider `some` request for renegotiation of ad contracts.
"We believe, the channel would accommodate some requests based on their long term business relationship with advertisers and agencies," AAAI Secretary General Dara
Acidwalla said.
His statement comes a day after AAAI and the Indian Broadcasting Foundation (IBF) issued a joint statement asking advertisers, media planners and the channel not to
renegotiate deals signed for the World Cup.
"Contracts are always bilateral in nature... The parties who have entered into an agreement can modify this based on various reasons, and goodwill could be one of them. The key is
that the parties should both agree to this modification and cannot be unilateral," Acidwalla said today.
When contacted, IBF Director Finance Naresh Chahal said there was no question of renegotiating the deals again.
"It is a commercial contract and it has to be honoured," he said, adding it was unfair to link India`s performance in the world cup with demand for renegotiation.
"When India reached the finals in 2003, Sony was the broadcaster. At that time did they ask advertisers to pay higher amount on sealed deals?" he said.
AAAI has been under pressure from its members to push for renegotiation of the ad contracts with the broadcaster after India`s early exit from the tournament.
Acidwalla, however, reiterated that seasoned advertisers would have factored risks in their rate determination. He also said AAAI`s stand to support IBF was consistent with the ones
taken in the past of honouring signed contracts.
Bureau Report
