http://contentsutra.com/article/419-ndtv-discontinues-ads-for-equities-business/

NDTV Discontinues Ads-For-Equities Business

Broadcaster NDTV Ltd has decided to discontinue its ads-for-equities
business, after striking deals with four companies, including Emaar
MGF and the Delhi Stock Exchange. The firm holds a portfolio of
Rs35-40 crore, according to a person with knowledge of the
development, who asked not to be named. NDTV CEO K.V.L. Narayan Rao
declined comment.

“The business was causing some discomfort within the company and the
board, and hence it was discontinued,” our source said.

The firm will continue to do barter deals, a practice that has become
common among media companies, under which ad inventory is traded for
products and services such as real estate, cars, airline tickets, etc.

Several media companies, including HT Media Ltd, Jagran Prakashan Ltd
and Bennett, Coleman & Co. Ltd did ads-for-equities deals in the
market boom days and holds significant equity portfolios in public and
privately held companies. The practice has been a lightning rod for
criticism due to the inherent conflict of interest when a media outlet
is covering a company in which the publisher/broadcaster has a
financial interest in. Media firms have usually defended the practice,
saying there is a chinese wall between the editorial and business
sides and positive editorial coverage is not promised when such deals
are struck.


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