HLL, Star in deadlock over advertising rates

MUMBAI - Talks between Star India and Hindustan Lever Limited (HLL) over advertising rates appear to have reached a stalemate with both parties refusing to budge from their positions.

According to sources, while HLL is believed to be demanding a 35 per cent discount on prevailing ad rates, Star is not prepared to consider offering anything higher than 25 per cent.

The deadlock comes at a time when most Indian broadcasters are mulling a hike in ad rates, basing it on increased viewer numbers.

With no HLL ads having aired on any Star channels in the past few weeks, the broadcaster stands to lose as much as US$24 million if HLL does not resume advertising  on the network soon.

Paritosh Joshi, president, ad sales and distribution, Star India said: “It is not the first time HLL and Star have had a difference of opinion; we have stayed away from each other in the past for as long as two-and-a-half months.”

However, Joshi was confident that on-going discussions would result in a positive outcome for both parties, pointing out that HLL and Star have a “symbiotic relationship” with each other.

Meanwhile, HLL has upped its ad spend on Zee network, which offers a complete package of general and regional channels, by 15 to 20 per cent in the last three months.