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.