Category: Technology

NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (Ficci) has demanded various benefits for the digital cinema industry, including tax holiday under Income Tax, exemption from MAT and DDT, 100 per cent depreciation benefit, sales tax exemption and customs benefits.

Topping the list of demands is a 10-year income tax holiday, just as is done in the case of various types of infrastructure development, including creation of trunking, broadband network and tax holidays multiplexes.

The Ficci document has also strongly stressed the definite need for removal of service tax in the case of this “fledgling industry”,

It has shown that at various stages, from conversion of analogue images to digital and the time of being actual screening, the players – operators, distributors, rentals for service providers, etc. pay several times.

“All the services described in the business model above attract a levy of service tax at 12% plus 2% education cess thereon, albeit under different service categories. It is submitted that for an industry in its infancy, a cost of 12.24% of its revenues will have a significant adverse affect on its prospects, if not serve to destroy it altogether,” Ficci has emphasised.

The document spelling out Ficci‘s budgetary wishlist says that digital cinema has tremendous benefits, not the least of which is less burden on the environment, which is the ground on which it has demanded 100 depreciation benefit for the sector.

The document argues that analogue prints are made from polyester films and are destroyed by burning, which is a huge bio-hazard. Digital prints are mere digital files and can be simply erased from our server‘s memory. Hence, film waste removal is taxing on the environment, because polyester films cannot be recycled.

Ficci has suggested the development of digital cinema infrastructure that would benefit the industry hugely.

It argues that this will increase box office collections, generate rural employment and curb piracy, as well create savings in foreign exchange and minimize wastage in print.

“In India”, the document argues, “software piracy has assumed gigantic proportions. Ficci studies estimate that the Indian film industry loses almost 42 per cent revenue due to piracy.

“In absolute terms this amounts to approximately Rs 2,000 crore on account of piracy. This is money on which the government earns neither Entertainment Tax nor Income Tax.

“An early and widespread release of movies, enabled by digital cinema will act as an effective deterrent to piracy,” it says.

Ficci also says that early migrants to the digital cinema system have reported more than 100 per cent increase in revenue collections by way of increased box office collections due to early screening of movies.

“Needless to mention, this has also translated into enhanced collections of Entertainment and Income Tax,” stressed the document.

Digital cinema makes niche cinema and regional language films more commercially viable. This will, in turn, generate employment for local artists and technicians and other regional film industry related infrastructural suppliers, holds Ficci.

It has stressed that digital cinema infrastructure equipment, particularly the digital projector and digital movie compressor, which attract the peak rate of custom duty, be given exemption.

“Since these items are not manufactured in India and are a very heavy cost burden to the provider these should be treated at par with hi-tech and information technology sector items with customs duty being reduced to nil,” suggests Ficci.

Ficci has also recommended that the state governments give lease tax exemption to the new industry.

Considering the way digital cinema infrastructure is poised to revolutionise the films and visual arts exhibition in the country, with multi-fold advantages to all the constituents of the society, (viz. the content owner, the theatre owner, the tax administration, and the general public as the ultimate consumer), it certainly deserves a whole hearted support from the Government of India, Ficci feels.

“And as elucidated above, a strong Digital Cinema Infrastructure would, in the long run, pay back more than what it is requesting for now.”

Denying that the scheme had failed in the three metros, Information and Broadcasting minister Priyaranjan Dasmunsi said that the scheme had in fact succeeded in enrolling a total of 5,09,469 subscribers who had opted for the set-top box (STB) in the three metros within one year.

Eros will for the first time offer consumers free online content including exclusive content from the Eros movie catalogue of more than 1,300 titles, 5,000 music videos, behind the scenes, “making of movie” footage, exclusive short movie clips and events such as IIFA and more.

“This is a pioneering model for the Indian film industry and we strongly believe in advertising supported business models. This initiative will help our plans to offer free online content a tremendous boost and benefit consumers largely,” says Eros Entertainment New Media SVP Manu Kaushish.

“With the increase in demand for digital distribution and on-demand consumption of content by users, this innovative step will help users take advantage of the absolutely free-of-cost instant access to the exclusive Eros movie content,” added Eros International VP of sales & new media Kumar Ahuja.

This advertising supported free viewing will allow users to watch the Eros video content as a completely free stream. The video stream will be supported by periodic advertisements, a model similar to the television model.

For users wanting to download and watch movies as a rental without advertisements, Eros has a paid download model where movies expire after first play. Alternatively, users can also download and own the movie to watch through Eros‘ paid downloads to own model format.

Eros is also in the process of working with other studios and content owners to offer additional Bollywood titles as well as TV content on the Eros platform. Currently, the Eros roster of blockbusters includes recent releases like Om Shanti Om, Partner, Namastey London, Cheeni Kum, Provoked, Gandhi My Father, Heyy Babyy and more.

Eros, which has a 51 per cent stake in Tamil film giant Ayngaran, will also be adding Tamil content as part of the advertising supported free online content.

Unlike TV where brands pay for ads by reach of station, advertisers here would only pay for ads that have been viewed by a person on the Eros platform, making sure that every dollar spent results in views of the ad, says the company.

The partnership between Turner and Vidiator enables Nokia device owners across Asia to access CNN video content at the highest quality streaming possible.

Turner International Asia Pacific VP of wireless and interactive content development and distribution Ringo Chan said, “We are delighted to work alongside two such respected leaders in their field to deliver this first-class product to consumers. This unique collaboration is particularly exciting as we are the only international news network chosen to be embedded on the handset. The service enables users to experience high-quality CNN news clips including world news, business and entertainment.

Vidiator CEO Connie Wong says, “This announcement represents a new era of mobile internet video experience by bringing CNN video content into the hands of Nokia‘s new series of multimedia device owners. I am proud of this partnership with industry leader like Turner to stream CNN video content to mobile phone users anytime and anywhere. This collaboration once again validates Vidiator‘s position as the industry leader specialising in streaming of high-quality video and audio content for mobile networks.”

Vidiator provides mobile solutions built on the Xenon Mobile Multimedia Delivery Platform including Xenon Streamer, Xenon Offline Encoder and Xenon Live Encoder. Xenon Streamer enables media-on-demand and live broadcasting for live events and mobile TV. One of the huge technology advantages Vidiator brings is its ability to adapt to the mobile radio signal when streaming video over the air by changing the bit and frame rate dynamically.

Xenon Offline Encoder facilitates multimedia encoding for mobile devices with its optimised encoding algorithm, while Xenon Live Encoder encodes and streams any analog video signal including a TV channel or any camera feed, and is the first mobile TV service platform to have Fast Live Channel Switching with H.264 at QVGA encoding quality.

The new instrument, Spice S-585, is powered with functionalities such as FM radio, VGA camera, and video and music player apart from other basic functions.

The new set has extendable memory upto 1GB. Therefore, the users can click pictures, save movies and songs as well in their cellphone.

Additional features include the one touch FM Radio, MP3 player and inbuilt speaker phone. Its display has 65,000 TFT colour screen.

The handset comes with accessories including dual corded headset and USB cable.

Zee feels that its suggestions on mobile TV should have been considered by Trai, as broadcasters would be facing serious challenges otherwise.

Seeing those suggestions dumped completely, Zee has as a last recourse written to the ministry, ahead of what sources indicate would be a court case against the regulation.

Zee has demanded that any broadcasting company should be allowed to provide mobile TV services.

Zee says that cross holding caps are not appropriate in these scenarios, and has warned that the regulation, if left untouched, would lead to engineering monopolistic control by some players.

It says, “It is a recognised fact that today mobile companies have more than 225 million customers between them. They have access to all customer data and are in an advantageous position to provide any form of mobile TV services.

“It includes either 3G-based, terrestrial or satellite mode services. Against this, the broadcasters have heavy odds as they need to target customers on other networks.

Hence, to correct this serious anomaly, Zee recommends that CMTS companies should not be allowed to bid for terrestrial or satellite licences for mobile TV.

“This is to prevent development of complete monopoly on all modes of mobile TV,” says the Zee letter, which is signed by senior Zee officials.

Zee also says that the provision for licence fees as recommended by Trai is unworkable, and stresses that the fee should be charged at the rate of four per cent of the gross adjusted revenue.

It has pointed out that Trai itself had earlier recommended this for the DTH services. Thus, the recommendation for mobile TV is not a view consistent with its earlier recommendation; the ministry should have uniform standards for all platforms.

Trai has recommended that the licence fee should be 4 per cent of gross revenues or 10 per cent of the reserve price for auctions for a particular area, and Zee is demanding dropping the second provision (or 10 per cent, whichever is higher).

Zee suggests the ministry refer this to the ministry of finance if the recommendations are to be taken forward in the present form “as large sums of money are involved and a misplaced policy on the lines recommended by the Trai can lead to litigation and a severely distorted operating environment.”

On the issues of FDI cap and crossholding restrictions, Zee says that the Trai regulatory recommendations suffer from aberrations.

“For terrestrial broadcasting Trai had recommended 20 per cent FDI in line with DTH and FM radio, while for mobile TV, which has been throughout compared with the FM radio even in the 2008 recommendations, the FDI recommended is 74 per cent,” the letter points out.

This suffers a major inconsistency from Trai‘s earlier recommendation that the “ministry should take an integrated view of all media-related services, and the same equity structure should become applicable to the entire sector including terrestrial broadcasting, FM and IPTV.”

“Should this be taken to read that the Trai is recommending the enhancement of FDI in DTH and FM radio also to 74 per cent?” the letter asks

Zee argues that since mobile TV is just another delivery platform for the same content, “any company, even with more than 20 per cent holdings by broadcasting company, should be eligible to provide such services.

“It falls in the natural domain of a broadcaster. Hence, if there is a licenced terrestrial TV broadcaster in India, its programmes can be received on mobile handsets as well and it does not need a separate license.”

Zee has also written on the other issues such as spectrum, time to market sharing of infrastructure, return path considerations and reference interconnect offer. In all its arguments, it has sought to point out how Trai has gone against its own earlier stands and how the regulation would lead to a biased regime fostering monopoly.

The website will enable him to reach out to his fans and protect his cyber identity under DotAsia‘s Celebrity Pioneer Program that offers Indian celebrities the priority to register their domain name with .Asia before the registrations are opened for public later this month on 20 February.

Kapil Dev‘s website will have comprehensive information on the cricket legend and will also act as a discussion platform for his fans, who will be able to directly get in touch with Kapil Dev and interact with him through his site.

According to DotAsia Organisation Limited CEO Edmond Chung, “There are more than 450 million online customers in Asia, and the .ASIA domain name is a gateway to reach this largest Internet market in the world. While .COM ignited the ecommerce boom in the US, .EU was created for Europe. .Asia is the first global top-level-domain that is headquartered in Asia and will be the platform for growth of the region. The Pioneer Domains Program focuses on building positive usage of the .Asia domain which in turn drives adoption and development for the Internet community across Asia.”

Apart from Kapil Dev, other early adopters of the program in India include many celebrities including pop diva Shibani Kashyap, TV star Rakshanda Khan, ‘Indian Idol‘ fame Rahul Vaidya, Anoushka – pop artist & a VJ at ‘Channel V‘ amidst many others.

DotAsia is committed to the orderly and stable launch of the .Asia domain into the technical and social fabric of the Internet. In contrast to the mad rush to domain names which had left brand owners around the world frustrated in past launches of new top-level domains, a comprehensive “Sunrise” (priority period for Trademark owners and businesses) process was implemented for the .Asia registry.

According to reports, News Corp. may decide to merge its Fox Interactive Media unit which houses MySpace and IGN with Yahoo and take a stake of 20-25 per cent in the combined entity.

The talks are believed to be at a very preliminary stage.

Apparently, besides talking with News Corp., Yahoo also has explored an advertising partnership with Google, its biggest rival. Reports of a possible merger with Time Warner Inc.‘s AOL were published in the media recently.

Microsoft‘s deal was originally at $44.6 billion, or $31 per share, while Yahoo is believed to want at least $40 per share, or about $56 billion.

MSN India executive producer Krishna Prasad said, “MSN India has always been associated with the best of Indian cinema and with epic films like Jodhaa Akbar we not only look to provide great entertainment to our users but also give them an opportunity to extend their movie experience.”