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Nimbus Communication finds it difficult to market airtime for DD

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Nimbus Communication finds it difficult to market airtime for DD

Nimbus Communications has not been able to market airtime sales for its six-and-half hours of business programming on DD News. Nimbus Communications’ contract is up to March 31, 2002, but its existence till then is uncertain, as Prasar Bharati has indicated it will shut the news channel and launch DD Bharati. The likely date for the launch is January 26, 2002.

Nimbus was to market Business Day on DD News October onwards after it moved into the sponsored category. According to the contract, the company was to supply six and half hours of business programming, which included six hours of, live content. Nimbus was the single largest producer of content for DD News.

According to the contract Doordarshan would pay Nimbus Communications around Rs 6 lakh per day for the first six months. In the second half of the period, Nimbus would pay DD only Rs 5,000 per day, as Business Day would move into the sponsored category. DD was to be issued bank guarantee worth Rs 66 lakh for the six months. The revenue would be split between the two partners while Nimbus had to supply the content free. Business Day would come out for 22 days a month.

During the first six months, no single ad could be obtained for Business Day. The channel was hit by poor distribution and could not match the content from its rival CNBC India. Nimbus put the blame on distribution.

According to Nimbus Communications the termination of the contract can happen with one month’s notice. It could also be extended for another year on mutual consent.


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