ITV

Tag: FDI

  • NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    MUMBAI: News major NDTV Ltd, while declaring an 85 per cent rise in net profits for the quarter, anounced that it has floated a subsidiary – NDTV Networks BV in Netherlands.

    This new company will wholly own NDTV Networks Plc and its underlying subsidiaries – NDTV Imagine, NDTV Lifestyle, NDTV Convergence and NDTV Labs and 50 per cent in NGEN Media Services. All these subsidiaries are currently wholly owned by their respective parents and would engage in implementing the new business initiatives to be undertaken by NDTV, the company said in a release.

    Indiantelevision.com had first reported that NDTV Group had floated Networks Plc, UK, which would play a big role in bringing in investments for the entertainment and other non news channels. The company had applied for Foreign Investment Promotion Board (FIPB). Reportedly, the approval is for pumping in $130-160 million in the form of foreign direct investment (FDI).

    Hindu Business Line has reported that the subsidiary would raise funds in the overseas market, particularly through listing on the Alternative Investment Market (AIM) segment of the London Stock Exchange. While $106 million would be invested into NDTV Imagine (a non-news Hindi mass entertainment channel), FDI to the tune of $25.23 million would be pumped into NDTV Lifestyle which would be engaged in the business of content production for TV channels dedicated to travel, food, fashion, shopping and health and wellness in India and abroad.

    NDTV Q3 net profit up 85 per cent at Rs 48.8 million

    Meanwhile, NDTV has reported 85 per cent rise in net profit to Rs 48.8 million in the third quarter ended 31 December 2006 against Rs 26.4 million in the year-ago period.

    Total income rose 15.21 per cent to Rs 793.8 million from Rs 689 million during the same period. The company’s operating profit margin dropped from 22.24 per cent to 17.77 per cent year on year.

    Profits and revenues rose despite huge incubation costs, the company said in a release.

    “NDTV’s Indonesian JV (Astro Awani) made profits this quarter within just six months of its launch. The channel is on track to launch its Malaysian channel shortly. The company has also launched operations in Australia and New Zealand,” the statement added.

  • Ficci bats for TV industry, seeks convergence norms review

    Ficci bats for TV industry, seeks convergence norms review

    NEW DELHI: Rationalisation of FDI caps in television distribution and news and non-news content, easing of policies and regulation for uplinking of channels and framing of cross-media ownership rules are some key elements that Federation of Indian Chambers of Commerce and Industry (Ficci) has suggested to give a fillip to the Indian TV industry.

    According to a Ficci submission to the government-sponsored think-tank on economic policies, Planning Commission, for inclusion in the 11th Plan Approach Paper, the TV sector currently lacks a consistent and uniform media policy for foreign investment. Some of the inconsistencies include different investment caps in foreign direct investment (FDI) in various segments.

    For instance, in television distribution (DTH) 49 per cent foreign investment is allowed with strategic FDI capped at 20 per cent. In cable, 49 per cent foreign investment is allowed, while in news content (TV and print) 26 FDI is allowed. In radio, 20 per cent foreign investment is permitted presently.

    Ficci has pointed out that convergence of technologies, services and markets is the emerging paradigm around which the communication industry is centered. Advancement of technology has blurred the line between telecom, broadcasting services and networks and under such a scenario there are urgent needs to review policies governing this sector.

    For example, Ficci has said, any regulation change must take into account emerging techs like IPTV, broadband and spectrum allocation for both broadcasting and telecom services.

    “It should be the aim of regulation to facilitate fair competition between players, competing platforms and multiple technologies in the carriage segment letting the markets decide the technology and platforms of choice,” Ficci said in a statement, adding similar suggestions have been made by broadcast and telecom regulator too.

    Ficci has noted that the content side is independent of carriage and should be largely self-regulated.

    In its submission to the Planning Commission, Ficci has suggested conversion to digitalization should be mandatory with clear time frame defined for transition to digital.

    Fiscal incentives such as waiver of service and entertainment tax and income tax holiday could be provided to operators for transition to a digital regime.

    At the same time, Ficci has criticized price regulation for digital cable providers, plugging for its discontinuation.

    Pointing out that presently India does not have a national digital policy or plan, Ficci has said existing regulatory and policy framework for the cable industry is quite inadequate in dealing with issues like digitalization, which will increase consumer choice and help in overcoming bandwidth limitations.

    Interestingly, the apex chamber of commerce has said that licensing process should be made stringent to filter out non serious players through insistence on companies’ net worth, proper declaration of subscriber base and area of operation.

    It has been pointed out that the government should look at establishing India as an uplinking (of satellite channels) hub by easing the existing policies/regulations for uplinking of channels and setting up teleports/hubs.

    A liberal FDI regime, which allows greater control over uplinking infrastructure, could attract foreign players to India, Ficci has said, pointing out that Singapore allows 100 per cent foreign ownership of uplink infrastructure of licensee companies, apart from having a tax-friendly environment.

    Surprisingly in a muted tone, Ficci has brought up the issue of cross-media ownership, which is rocking the media industry presently.

    Considering no public draft has been evolved as yet relating to cross-media ownership, absence of any draft rules or an established time frame for evolution of such rules hampers long-term investment strategy of a potential foreign investor, Ficci has noted.

  • Govt ultimatum to channels on downlink norms

    Govt ultimatum to channels on downlink norms

    NEW DELHI: The Indian government has issued an ultimatum to all TV channels that those failing to adhere to downlink norm deadline of 10 May will not be allowed to downlink into the country.

    In a statement issued on 3 May, the government has said, “It is clarified that (television) channels for which even complete applications, with processing fees, are not received on or before May 10, 2006, shall not be permitted to be downlinked thereafter.”

    The information and broadcasting ministry has come out with clarifications on various queries on the policy guidelines for downlinking of television channels in India on its website.

    The guidelines stipulate a time of 180 days from 11 November 2005 for completion of all formalities of registration under downlinking guidelines.

    On queries relating to foreign direct investment (FDI) permitted in television ventures, the government statement states that 100 per cent FDI is permitted in the broadcasting sector, which is not under the automatic route and all such proposals will have to be routed through the Foreign Investment Promotion Board (FIPB).

    The government has also clarified that as on the date of submission of application for permission under downlinking guidelines, the applicant company must have requisite net worth and continue to satisfy the requirement thereafter.

    The information and broadcasting ministry had earlier stipulated different net worth of television companies as per categories, namely entertainment, news, etc, in an effort to differentiate between the serious and non-serious players.

    The downlink guidelines state that all TV channels wishing to be downlinked into the country would have to get themselves registered with a designated authority and also establish a permanent establishment, amongst some other stipulations that have been dubbed stringent by some media companies.

    For example, the government reiterated on Wednesday that an applicant company is required to provide a facility where online monitoring of content being beamed into India is possible.

    Also, the system should have the capacity to store data for 90 days, which should be available to the government at any point of time in India at a pre-designated place.

    The companies need not set up new facilities for this purpose, but could authorize any of their multi service operators (MSOs) or head end operators to provide this facility, the ministry has clarified.

    The government has shot off letters relating to various queries on downlink norms to the Indian Broadcasting Foundation, Star Group and Time Warner, according to information posted on the site of the I&B ministry.

    Earlier in March, the government had turned down a request from the Indian Broadcasting Foundation to extend the 180-day deadline for fulfilling newly-formulated downlinking norms by broadcasting companies.

    Indiantelevision.com has learnt from government sources that Star group, for instance, has applied under downlink norms for various family channels separately.