(19 February 2009 9:30 pm)

MUMBAI: The media industry has lost $8 billion and would have touched $20 billion if all the stakeholders had worked together to remove roadblocks in the growth of the sector, said Zee group chairman,Subhash Chandra, in his valedictory address at the 10th edition of Ficci-Frames.

A fragmented cable TV industry, revenue leakages in the distribution system and high carriage fees have dragged down the growth of the industry.

"If the stakeholders compete and yet cooperate, then the industry will grow to $60 billion over the next 10 years. Otherwise, the growth will be restricted to $30-40 billion," Chandra said.

New MSOs have built business models on carriage fees. Chandra said,"Carriage fees are being blown out of proportion. What will happen is that broadcasters will stop paying carriage fees and MSOs will suffer losses."

Broadcasters have spent money recklessly during the bull run. Now is the time to take corrective measures on costs. "We have decided to shut down two channels," said Chandra.