World Cup googly plays havoc with Sony's plans

Sony's telecast of the cricket World Cup ended this weekend with a whimper. India's loss at the World Cup is a massive loss for Sony as well, which may force Sony to delay its IPO plans, reports CNBC-TV18.

 

The World Cup may be over but official broadcaster, SET India's cup of woes may not be over just yet. Nearly Rs 400 crore worth of revenue was netted by Sony in this World Cup but India's early exit put a dampener on its revenue targets for the entire year.

 

Nearly Rs 200 crore is riding on the rest of the year's TV properties for Sony. Coming up next month is the third season of Indian Idol 3. With all six sponsors for the show finalised, Sony is eager to move on from the World Cup.

 

Rohit Gupta, EVP-Sales, SET India, said, "We have not renegoatiated with any sponsors - we have lost a lot on this World Cup too; we are in no position to offer anything to any sponsor and going forward - it is tough to say what the impact will be."

 

Sony Chairman Howard String who was in India two weeks back has extended CEO Kunal Dasgupta's contract for the next three years despite the World Cup disappointment but Sony's revenue targets for the year are under scrutiny and its IPO plans have been postponed indefinitely. But media planners say, all it would take, is two hit shows for Sony to bounce back.

 

Shashi Sinha, CEO, Lodestar Universal, said, "We are all paying the price - because of the under delivery this World Cup."

 

Sponsors like Airtel, P&G, Loreal have signed on for the next season of Indian Idol reportedly at a discount to the last season's sponsorship rates.