Adgully Exclusive | It's time to cash-in on our performance and correct our pricing: MOVIES NOW's Ajay Trigunayat

"MOVIES NOW", the English movie channel that's in the race to become a market leader has increased its ad rates by 100% with effect from April. Ajay Trigunayat CEO English Entertainment Channels, Times Television Network says that the channel, aims to increase the rate from Rs 3000 a spot to Rs 6000. He adds "With a very robust one year performance and an equally strong eight weeks performance, we sincerely believe that the brand deserves premier and premium pricing. We will continue to stick to the commitments that we have already made in the long-term contracts.

The rates will be applicable for the new advertisers coming on board and on deals which are ready for renewal. As the channel follows an RODP and ROS route for advertising we are flexible depending on a client's needs and outlay."

He is, indeed quick to concede that the channel will face stiff resistance from advertisers, but reasons that the channel, which has been a game-changer in English entertainment movie space has been undersold for a long time. With preferred movie titles coupled with state of art technology, graphics and premium packaging, "MOVIES NOW" gave its audience the best on-air "look and feel" which resonated with well heeled affluent consumers.More and more advertisers are making investments in the channel to tap the increasing english speaking audiences who are "MOVIES NOW" main target audience.

When quizzed on why the channel decided to go for a hike, Ajay Trigunayat, CEO, English Entertainment Channels, Times Television Network, says, "When we launched, our 10-second spots were priced much lower, ie 60% less than the operative costs, until we decided to up them in the second quarter of the launch, even as the advertisers started reacting to our market presence. However, the rates still remained short of what STAR Movies demanded, although we gathered almost 30% market share in this genre. We have been delivering consistently but it was not reflecting in our pricing. Therefore, we thought it's time to cash-in on the performance and correct our pricing from this year onwards."

According to sources for STAR Movies, the primetime rate ranges between Rs 10,000-12,000 per 10 second spot, while for non-primetime, the variation could be anywhere between Rs 2,000-3,000 per 10 seconds.

But the moot question is, is it right for "MOVIES NOW" to double their ad rates now?

Some media experts think that to match up to STAR Movies' demands is a logical move.

However, the some media planners feel that a 100 per cent rate hike is not reasonable at this time.

Another top media buyer notes that the market is still not buoyant and many categories including insurance are not willing to spend enough for a channel which is not an undisputed leader.

Anita Kotwani, Principal Partner Mindshare says that rate hikes need to be justified and in this instance one would like to see the justification for the 100% hike. Logic and rational explanation for the rate hike needs to be made before doubling the rates. Market will not absorb such kind of Inflation.

But Ajay Trigunayat clears these doubts saying that 500 consumer brands work with them including, Nokia, Nestle, Cadbury, Honda etc. They also boast of the best distribution network.

However PM Balakrishnan COO Allied Media says it does not look feasible as brands will look at other options as no advertiser will accept such a steep rate hike. .However english movies as a genre has a specific role and position in the strategic recommendations of a tv plan for a niche audience and MOVIES NOW delivers effectively in that segment and hence has potential for some deals compared to HBO and Star movies.

Sharing his views about the English movie genre, Star India president ad sales Kevin Vaz is not too enthused about MOVIES NOW's ad rate hike . However, he admits that a rate hike is imminent. "At the end of the day, we are under monetised despite the fact that we deliver premium audience. It is high time advertisers start paying higher price for the audience that we deliver. Right now the rates that English movie channels get is peanuts compared to the kind of audience we deliver. With more and more premium brands launching in India, I think English movie channels will start commanding higher price since we connect them to their core target group," Vaz affirms.

Beginning from 5th April, "MOVIES NOW" has been showcasing legendary director's Steven Spielberg's 10 most prominent films for 12 weeks .Effort is on to woo audience with out-of-box ideas and promotions.

So, sit back, feel the fear¦and enjoy the thrill of the "Atmosfear¦."