Tag: FDI

The present detailed note is in response to certain concerted efforts being made by a foreign media conglomerate by lobbying hard with the present Indian Government to Create a “Media Monopoly”

STAR INDIA, TREXIT, AND THE CURIOUS CASE OF NATIONAL BROADCASTING POLICY

The present detailed note is in response to certain concerted efforts being made by a foreign media conglomerate by lobbying hard with the Indian Government to remove/relax the extant FDI restrictions on electronic news and current affairs segment and Cross Media holding restrictions/ regulations. This is being done so as to acquire an “end-to-end” control over entire media segment i.e. from creation of content (broadcasting – both news and non-news) & distribution (mainly DTH and Cable TV) and create monopoly. The effort has been to somehow completely own an existing DTH platform in which it holds at present around 30% stake (which in itself is a violation of existing DTH guidelines as a broadcaster cannot hold more than 20% in a DTH platform). Similar efforts are being made to acquire Digital Cable Television network so as to have complete control over content distribution platforms.

This media house/entity already has cricket telecast rights of all the matches conducted by BCCI, ICC as well as that of IPL which is the most popular sport in India. This has wide ramifications not only from competition point of view but also has grave national security implications. It is pertinent to note that apart from potential distortion of the market and thereby eliminating the competition, it would also have an adverse impact on the consumers’ and public interest. If these relaxations are done in media sector then a situation will come, when in India only two or three big players ’viz., Star, Zee, Times Group and Sun TV group will remain in the media sector and which will be totally against interest of the public at large and the nation. In fact this will lead to the situation where in these media houses will dictate the Government in all the issues.

Continue reading The present detailed note is in response to certain concerted efforts being made by a foreign media conglomerate by lobbying hard with the present Indian Government to Create a “Media Monopoly”

Vertical Integration in Broadcasting sector in India

The media plays an important and multiple roles in society. The most obvious of these are collection and dissemination of information, communication and entertainment among the people. Further, through its reach to the people the media also transmits social and cultural values and serves as a medium of education Thus a major motivation behind the restrictions on cross media ownership is to preserve the diversity of media so that citizens have access to diverse viewpoints that enable them to have access to a wide variety of views and thereby participate fully in democratic process.

Various foreign countries including USA and Australia have very stringent regulation in media sectors including restriction in media sectors whether it is FDI and / or vertical /cross-media restrictions. In India the current sets of regulators for different forms of media are toothless in regard to handling an issue this complex. Hence, a comprehensive regulatory framework i.e. Broadcast Regulation Act is need of the day for media for oversight on potential anti competitive behavior and outcomes in a fast growing and technologically developing sector.

It is submitted that the issue of FDI to be permitted in India cannot be viewed in isolation as it is intrinsically linked with the investments permitted on a reciprocal basis to Indian companies overseas. Developing a strong multinational presence for an Indian company is dependent on what investment climate it faces in India as against what kind of investment opportunities are offered to Indian Companies for providing and undertaking similar services in other countries and acquiring similar assets overseas.

Hence, at the outset it is stated that the premises on which the liberalization of FDI regime and relaxing / removing cross media restriction is being planned to be considered in media sector (especially in News, DTH, HITS, etc.) is based on inadequate points and should be widened to include international trade issues, India’s commitments under GATT and WTO and the reciprocal offers, Indian companies receive in respect of FDI from various countries.

Detailed note on FDI in Broadcasting and Media in India by Mr.Vikki Choudhry