Media 2007: Much ado, less cheer

NEW DELHI: The glitz and glamour of media and entertainment sector was somehow overshadowed in 2007 by the one-oneupmanship game between the government and industry, especially over the controversial Broadcasting Bill and a content code.
   
Two incidents --one fake sting operation and an unsavoury remark by a radio jockey -- also did not exactly serve the cause of the industry.
   
In the year that otherwise witnessed an unabated proliferation of television and FM radio channels -both crossed over 400 and 200 marks respectively-- the government was seen increasingly seeking to impose itself on the industry and more powers to control the sector.
   
Wittingly or unwittingly, Information and Broadcasting Minister P R Dasmunsi occupied as much air time and print space for his proactive steps as was the banning of TV channels such as AXN and FTV for a month. The two channels were pulled up for transmitting "vulgar contents".
   
The electronic media, despite a collective opposition over proposals to regulate the news content, provided the government ample ammunition to fire at it by doing a fake sting operation. The case in point being the Live India sting on a Delhi school teacher Uma Khurana for her alleged involvement in a sex racket.
   
While the industry vociferously contested the dos and dont's from the government, proposed in the Broadcast Bill, they were unable to defend the mandatory sharing of live feeds of sporting events of national interest with Prasar Bharati.
   
The government had brought in an ordinance earlier in the year for the same as private broadcaster Nimbus objected to the proposal of sharing of cricket telecast feed with the public broadcaster.
   
Another fight that plagued the industry was with advertisers when the Indian Broadcasting Federation (IBF) sought a 25 per cent hike in fees on behalf of members to offset rising input costs.
   
The Advertising Agencies Association of India rejected in outright saying contracts are between channels and advertisers and no third party should be involved, resulting in a long drawn affair. Ultimately, status quo was maintained and the matter will be taken up in January by the two bodies.
   
It, however, was not a year lost in fights. Some positive things did emerge with the government mooting proposal to allow more FDI in cable and broadcasting segment on the lines of telecom sector, where 74 per cent FDI is allowed.
   
Also, the I&B ministry said it would take up the case of the industry with the finance ministry for a slew of tax incentives for infrastructure and technological upgrade in the TV and entertainment sector.
   
Moreover, the country geared up itself to embrace new digital technologies such as Direct to Home (DTH) services and Internet Protocol TV (IPTV), moving away from traditional analogue system. The DTH space alone saw fresh investments of about Rs 3,100 crore from players like Tata Sky and DishTV. New players like Bharti, Reliance, Videocon and Sun TV were seen waiting in the wings.
   
On the radio front, the FM industry grew at 28 per cent in 2007 compared to 18 per cent for overall media and broadcasting industry in 2006. The number of FM radio channels increased to over 200 in the country. Yet, the penetration of radio, number of listeners as a percentage of the population, grew by just eight per cent to 53 per cent from 45 per cent last year.
   
The slow growth, according to a FICCI study was due to the lack of diversity in content in FM channels, which are dishing out Bollywood-centric music, bereft of other forms of entertainment and news and current affairs programmes, is leading to disenchantment among audiences.
   
Like the electronic media, the radio sector also gave the government a chance to prove its point for more control when casual remarks by a radio jockey of private FM channel Red FM on Indian Idol III winner Prashant Tamang created furore in Darjeeling and parts of North East India.
   
The channel was given a notice to be off-air for a week by the Information and Broadcasting ministry, which however, was shot down by broadcast tribunal TDSAT.

The television industry continued on the expansion spree with media conglomerates like NDTV and others like INX Group, UTV and Bag Films announcing their plans of launching new channels. The country now boasts of having about 400 TV channels.
   
At the same time, broadcast regulator TRAI allowed cable operators to pick and choose channels instead of broadcasters forcing them to buy bouquets.
  
This all was happening on the backdrop the tug-of-war with the government, which wanted to rest with itself more powers to control the fourth estate over the Broadcast Bill and content code.
   
Amongst others, the draft Broadcast Bill proposed a code of conduct, setting up of an independent regulator -- Broadcast Regulatory Authority of India (BRAI)-- which would include government representatives.
  
The industry's main contention was that such a body was not required as it was already self-regulated. Besides, the government's motive to have control over content of news channels met with stiff opposition from private broadcasters.
   
The industry were near unanimous in rejecting the content code, which they saw as an attempt to fetter the autonomy of media and have instead pressed for self-regulation.
   
After several rounds of talks with the industry, the government failed to build a consensus over the Bill, which ultimately delayed its introduction in Parliament.
   
We have delayed the process of introducing the Bill as big corporate houses are opposing it. They (corporate houses) like to have court directives rather than listening to the government, Dasmunsi said.
   
Another issue that pricked the industry-government relationship was the mandatory sharing of live feed of sports broadcasts of national interest with public broadcaster Prasar Bharati. When Nimbus, the holders of BCCIs cricket telecast rights till 2010 for matches played in India refused to share the live feed with DD, the government took the recourse of an ordinance to make it mandatory.
   
When it came on review of FDI policy in the industry, the I&B ministry started a review of the norms in consultation with concerned ministries.
   
FDI up to only 20 per cent is allowed in FM radio and Direct-to-Home (DTH) services, while it is 26 per cent in television news broadcasting. The cable services is allowed up to 49 per cent of FDI, which is being considered to increase up to 74 per cent in line with the telecom sector.
   
In case of internet service providers and non-news television broadcasters 100 per cent FDI is allowed.
    
Despite the hurdles, according to a report by Assocham and Ernst & Young, the Indian media and entertainment industry is set to grow at twice the rate of the country's GDP in the coming few years, driven largely by the emergence of regional players, technology and digitisation.
   
Signals are positive but it would require a harmonious environment for the sector to prosper.