Why the great Indian media dream crashed

18 February 2009

Rs 60 crore for hoardings to promote the launch of a television channel; Rs 1 crore per day for programming.

Hindustan Times editorial director Vir Sanghvi on why the great Indian media dream came crashing down:

“Many publishing houses ventured into businesses and products they had no understanding of, believing that the revenue from their existing cash cows would increase so dramatically that they could subsidize losses in the new businesses.

“That dream is now dead. That’s why some publications are closing down and others are certain to follow.

“In the TV space, the situation is even worse. Two years ago, venture capitalists believed that the boom would last forever. Not only would ad budgets keep rising but the stock market would sustain absurdly high valuations for media companies.

“Much of the expansion of the last two years has been based on these mistaken calculations. TV companies have spent so much money that it is hard to see how it can ever be recouped.”

Read the full blog: Why media suffers, while movies, IPL prosper?

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 7,526 other followers

%d bloggers like this: