Tag: Broadcasting Sector

TV segment ad revenue decline to be in range of 20-25% at end of FY21, report estimates

KOLKATA: The broadcasters have had rockier than the usual first half of the year due to ongoing crisis as the advertising spends fell drastically. While the market is slowly recovering, ad decline could be in the range of 20-25 per cent at the end of FY21. The report published by Elara Capital also predicts that Zee Entertainment Enterprises Limited (Zeel) and TV Today Network (TV Today) will outperform other broadcasters in terms of ad revenue.

Zeel’s growth will be driven by Zee Anmol moving back towards FTA and strong gains in the south based regional genre, as per the report. It further adds that TV Today will have an advantage of the shift in the news genre due to sharp viewership gains compared to other genres, which has tapered off post the unlock. However, it still remains high compared to pre-Covid levels. Aaj Tak being the leader in the news genre in the first half of FY21, the traction for ad spends in the festive season is expected to remain healthy along with some benefits during Bihar elections, thanks to strong market share for election poll viewership.

It re-emphasises that the re-conversion of channels like Zee Anmol, STAR Utsav from paid to FTA will continue to benefit the listed broadcasters like Zeel positively as they have been gaining significant market share within the GEC genre attracting ad revenues. Hence, the report predicts the ad revenues from these channels to move back to pre-NTO levels, which had plummeted after their conversion to paid channels post NTO 1.0 implementation.

Genre-wise, Hindi and regional GEC will outperform TV ad spends, while other genres like English, music, infotainment etc. will underperform given the continued weakness witnessed in the English entertainment genre and struggle of music, infotainment in attracting ad spends.

The report says that the pricing of GEC genre has seen a sharp recovery and down by merely 25-30 per cent narrowing the gap from 60-65 per cent in April-May. However further recovery for pricing in the GEC genre is expected only after the Indian Premier League (IPL) i.e. November onwards, as the latter has extracted a huge chunk of ad budgets. It also says that the festive uptick coupled with the resumption in GEC ad spends post the IPL season to bode well for the broadcasters, during the first half of the third quarter leading to 15 per cent growth year-on-year.

Nonetheless, the report mentions that broadcasters would not be able to close the quarter with the festive gains due to some drop towards December. Hence, they will end overall Q3 at a 7-8 per cent growth excluding IPL. During the fourth quarter, broadcasters are expected to report a growth of 10-12 per cent given the low base of FY20 impacted by Covid2019. Based on these expectations, FY21E ad decline translates to average 17- 19 per cent (ex-IPL).

November 16, 2020
Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

NEW DELHI: The broadcasting sector and particularly the cable sector welcomed the government’s announcement bringing almost the entire broadcasting sector under the automatic route for foreign direct investment.

Stakeholders said the step was very timely as the country was on the verge of completing the transformation to digital addressable systems for cable television.

The government had this morning announced opening up setting up of teleports, direct-to-home, cable networks, headend-in-the-sky and mobile television to 100 per cent foreign direct investment through the automatic route.

The announcement from the Prime Minister’s office said this had been done with the objective of providing major impetus to employment and job creation in India.

However with regard to the broadcasting sector, it was made clear that infusion of fresh foreign investment beyond 49 percent in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require approval of the Foreign Investments Promotion Board.

However, Hinduja Ventures Ltd whole-time director and former president of the MSO Alliance Ashok Mansukhani told indiantelevision.com that these changes would have real meaning only if the government is able to bring back DAS ‘on the rails.’

He said that just around six months were left for the final Phase of DAS and Phase III was already mired in several cases all over the country. Although the Supreme Court had directed that these be transferred to Delhi High Court, this process had not been completed with the result that the High Court could not proceed to hear the matter.

Phase III was to cover 7,700 cities and Phase four is to cover 61 million (6.1 crore) television households, but all this will be derailed unless the government is able to implement the different phases.

In a general reaction to the liberalization in FDI, FICCI Secretary-General Didar Singh said“There is no doubt that India today is the most preferred investment destination in the world. While the attraction of our market is known to all, there is now even more reason for global investors to commit themselves for making and doing business in India. Our government is translating words into action and after having made a strongest pitch ever to global investors, it if following up with a major overhaul of the FDI framework so that the interest generated is captured in the form of higher investment flows which are on a rise since the last two years”.

National Cable and Telecommunication Association President Vikki Choudhuri, while welcoming the move, said the government should also immediately re-look at the regulations which are not favourable for BPOs and the last mile operator.

Cable Operators Federation of India president Roop Sharma said that while the relaxation for cable and multi system sector going through automatic route was welcome, it would not serve any purpose unless the last mile operator is educated about this.

As a result, she said it would only lead to creation of monopolies in the hands of a few large cable and MSO operators. This was because cable operators in smaller towns never even came to know about the changes since no effort was made by the government to educate them.

June 20, 2016
Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

NEW DELHI: The broadcasting sector and particularly the cable sector welcomed the government’s announcement bringing almost the entire broadcasting sector under the automatic route for foreign direct investment.

Stakeholders said the step was very timely as the country was on the verge of completing the transformation to digital addressable systems for cable television.

The government had this morning announced opening up setting up of teleports, direct-to-home, cable networks, headend-in-the-sky and mobile television to 100 per cent foreign direct investment through the automatic route.

The announcement from the Prime Minister’s office said this had been done with the objective of providing major impetus to employment and job creation in India.

However with regard to the broadcasting sector, it was made clear that infusion of fresh foreign investment beyond 49 percent in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require approval of the Foreign Investments Promotion Board.

However, Hinduja Ventures Ltd whole-time director and former president of the MSO Alliance Ashok Mansukhani told indiantelevision.com that these changes would have real meaning only if the government is able to bring back DAS ‘on the rails.’

He said that just around six months were left for the final Phase of DAS and Phase III was already mired in several cases all over the country. Although the Supreme Court had directed that these be transferred to Delhi High Court, this process had not been completed with the result that the High Court could not proceed to hear the matter.

Phase III was to cover 7,700 cities and Phase four is to cover 61 million (6.1 crore) television households, but all this will be derailed unless the government is able to implement the different phases.

In a general reaction to the liberalization in FDI, FICCI Secretary-General Didar Singh said“There is no doubt that India today is the most preferred investment destination in the world. While the attraction of our market is known to all, there is now even more reason for global investors to commit themselves for making and doing business in India. Our government is translating words into action and after having made a strongest pitch ever to global investors, it if following up with a major overhaul of the FDI framework so that the interest generated is captured in the form of higher investment flows which are on a rise since the last two years”.

National Cable and Telecommunication Association President Vikki Choudhuri, while welcoming the move, said the government should also immediately re-look at the regulations which are not favourable for BPOs and the last mile operator.

Cable Operators Federation of India president Roop Sharma said that while the relaxation for cable and multi system sector going through automatic route was welcome, it would not serve any purpose unless the last mile operator is educated about this.

As a result, she said it would only lead to creation of monopolies in the hands of a few large cable and MSO operators. This was because cable operators in smaller towns never even came to know about the changes since no effort was made by the government to educate them.

June 20, 2016
Radical changes in FDI regime; Most sectors on automatic FDI route

MUMBAI: The Union Government has radically liberalized the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015. Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI.

In last two years, Government has brought major FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension Sector, Broadcasting Sector, Tea, Coffee, Rubber, Cardamom, Palm Oil Tree and Olive Oil Tree Plantations, Single Brand Retail Trading, Manufacturing Sector, Limited Liability Partnerships, Civil Aviation, Credit Information Companies, Satellites- establishment/operation and Asset Reconstruction Companies. Measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16, as against US$ 36.04 billion during the financial year 2013-14. This is the highest ever FDI inflow for a particular financial year. However, it is felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime. India today has been rated as Number 1 FDI Investment Destination by several International Agencies.

Accordingly the Government has decided to introduce a number of amendments in the FDI Policy. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors. Details of these changes are given in the following paragraphs:

1. Radical Changes for promoting Food Products manufactured/produced in India

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

2. Foreign Investment in Defence Sector up to 100%

Present FDI regime permits 49% FDI participation in the equity of a company under automatic route. FDI above 49% is permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

i. Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with.

ii. FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

3. Review of Entry Routes in Broadcasting Carriage Services

FDI policy on Broadcasting carriage services has also been amended. New sectoral caps and entry routes are as under:

4. Pharmaceutical

The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.
5. Civil Aviation Sector

(i) The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route.

(ii) With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.

(iii) As per the present FDI policy, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

6. Private Security Agencies

The extant policy permits 49% FDI under government approval route in Private Security Agencies. FDI up to 49% is now permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval route.

7. Establishment of branch office, liaison office or project office

For establishment of branch office, liaison office or project office or any other place of business in India if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting, it has been decided that approval of Reserve Bank of India or separate security clearance would not be required in cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted.

8. Animal Husbandry

As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions. It has been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.

9. Single Brand Retail Trading

It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.

Today’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.

June 20, 2016
Radical changes in FDI regime; Most sectors on automatic FDI route

MUMBAI: The Union Government has radically liberalized the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015. Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI.

In last two years, Government has brought major FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension Sector, Broadcasting Sector, Tea, Coffee, Rubber, Cardamom, Palm Oil Tree and Olive Oil Tree Plantations, Single Brand Retail Trading, Manufacturing Sector, Limited Liability Partnerships, Civil Aviation, Credit Information Companies, Satellites- establishment/operation and Asset Reconstruction Companies. Measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16, as against US$ 36.04 billion during the financial year 2013-14. This is the highest ever FDI inflow for a particular financial year. However, it is felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime. India today has been rated as Number 1 FDI Investment Destination by several International Agencies.

Accordingly the Government has decided to introduce a number of amendments in the FDI Policy. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors. Details of these changes are given in the following paragraphs:

1. Radical Changes for promoting Food Products manufactured/produced in India

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

2. Foreign Investment in Defence Sector up to 100%

Present FDI regime permits 49% FDI participation in the equity of a company under automatic route. FDI above 49% is permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

i. Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with.

ii. FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

3. Review of Entry Routes in Broadcasting Carriage Services

FDI policy on Broadcasting carriage services has also been amended. New sectoral caps and entry routes are as under:

4. Pharmaceutical

The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.
5. Civil Aviation Sector

(i) The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route.

(ii) With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.

(iii) As per the present FDI policy, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

6. Private Security Agencies

The extant policy permits 49% FDI under government approval route in Private Security Agencies. FDI up to 49% is now permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval route.

7. Establishment of branch office, liaison office or project office

For establishment of branch office, liaison office or project office or any other place of business in India if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting, it has been decided that approval of Reserve Bank of India or separate security clearance would not be required in cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted.

8. Animal Husbandry

As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions. It has been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.

9. Single Brand Retail Trading

It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.

Today’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.

June 20, 2016
Expenditure on broadcasting by MIB up by almost Rs 400 crore between 2012 and 2015

New Delhi: Broadcasting has occupied the largest chunk of the plan and non-plan expenditure of the Information and Broadcasting Ministry between 2012 and 2015. An analysis of the ministry’s expenditure shows that the Information sector came next with a slice that is far less than the expenses for the broadcasting sector.

And though films are probably the highest taxed sector, it got a slice of less than half of that for the Information Sector. Expenditure on Secretarial services is minuscule in comparison to the overall budget for each year.
The analysis also shows that the expenditure for broadcasting has been going up year on year, going up by almost Rs 400 crore between 2012-12 and 2014-15.

The total expenditure on broadcasting in three years was Rs 6693.68 crore, while the expenditure on the three other sectors of the Ministry together for these years was less than one-third of this at Rs 1918.63 crore.

Of the total expenditure of Rs 3158.53 crore in 2014-15, the expenditure on broadcasting was Rs 2467.4 crore, followed by the Information sector with Rs 466.4 crore, the film sector with Rs 176.33 crore, and Secretariat with Rs 48.4 crore.

In 2013-14 out of the total expenditure of Rs 2828.52 crore, a sum of Rs 2157.19 crore was spent on broadcasting, followed by the Information sector with Rs 474.73 crore, film sector with 154.29 crore, and Secretarial expenses at Rs 42.31 crore.

The total expenditure in 2012-13 was Rs 2625.26 crore. Of this, the expenditure on broadcasting was Rs 2069.09 crore, followed by Information with Rs 381.22 crore, films with Rs 133.02 crore and Secretariat with Rs 41.93 crore.

March 21, 2016
Expenditure on broadcasting by MIB up by almost Rs 400 crore between 2012 and 2015

New Delhi: Broadcasting has occupied the largest chunk of the plan and non-plan expenditure of the Information and Broadcasting Ministry between 2012 and 2015. An analysis of the ministry’s expenditure shows that the Information sector came next with a slice that is far less than the expenses for the broadcasting sector.

And though films are probably the highest taxed sector, it got a slice of less than half of that for the Information Sector. Expenditure on Secretarial services is minuscule in comparison to the overall budget for each year.
The analysis also shows that the expenditure for broadcasting has been going up year on year, going up by almost Rs 400 crore between 2012-12 and 2014-15.

The total expenditure on broadcasting in three years was Rs 6693.68 crore, while the expenditure on the three other sectors of the Ministry together for these years was less than one-third of this at Rs 1918.63 crore.

Of the total expenditure of Rs 3158.53 crore in 2014-15, the expenditure on broadcasting was Rs 2467.4 crore, followed by the Information sector with Rs 466.4 crore, the film sector with Rs 176.33 crore, and Secretariat with Rs 48.4 crore.

In 2013-14 out of the total expenditure of Rs 2828.52 crore, a sum of Rs 2157.19 crore was spent on broadcasting, followed by the Information sector with Rs 474.73 crore, film sector with 154.29 crore, and Secretarial expenses at Rs 42.31 crore.

The total expenditure in 2012-13 was Rs 2625.26 crore. Of this, the expenditure on broadcasting was Rs 2069.09 crore, followed by Information with Rs 381.22 crore, films with Rs 133.02 crore and Secretariat with Rs 41.93 crore.

March 21, 2016