According to the estimates, the company has raised Rs 150-200 crore from a bunch of big and small investors (Goswami retains majority control, according to company sources). A senior news broadcasting person estimates Republic TV’s capital cost at Rs 50-75 crore and operating costs in the first year at Rs 50-60 crore.
Analysts reckon that Republic TV has to hit the top spot in the shortest possible time if it has to make a dent in the ad market and break even. Typically, the top two channels in a genre make money; the number three just about survives. This then raises three questions about Republic TV’s ability to crack the Indian news broadcasting market.