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?