The media business is solely dependent on advertising dollars – and is precisely the most hit in the times of recession.
Here is a recap of what’s happening with media businesses:
- Outlook group, as reported in Businessworld is up for sale.
- The INX network has huge distressed assets while NDTV is planning to raise more funds from the market.
- Intense competition may also swallow UTV’s news venture.
- General entertainment channels could end up with an average annual loss of more Rs 300 crore. [source]
- India Today has closed Bengali edition – will restart when market conditions improve. [source]
- Business Standard has shut down its Gujarati edition.
- Mail Today from the India Today group is no longer eyeing a 20-city roll out at least for now.
- Price Hike
The newsprint prices have shot up by at least 50 per cent in the last six months and are eating into the profits of newspaper companies.
Both The Economic Times and The Times of India from the Bennett, Coleman stable have increased their cover prices in different markets. The Times of India now costs Rs 4.50 in Mumbai opposed to Rs 4 earlier. Even DNA has hiked its cover price from Rs 2 to Rs 2.50.
- Lesser options
Most of the players are going slow with their expansion plans. Many regional players are feeling the heat and consumers will be left with limited options.
Times group is evaluating rationalizing its manpower by about a 1,000 people from its internet and print media divisions [source]
If you were running a media company, how would you handle recession? Hike the price? Close down (or Launch) niche magazines/sites?
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