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Tag: Ficci

  • I&B ministry finalizing terms of law on broadcast regulator

    I&B ministry finalizing terms of law on broadcast regulator

    MUMBAI: The terms of reference of a law that will bring about a separate broadcast regulator are almost ready.
    This was revealed to Indiantelevision.com by Information & Broadcasting secretary SK Arora on the sidelines of the convention for the business of entertainment, Ficci Frames, this morning in Mumbai.

    Once the framework of the law is finalized, it would be distributed among the interministerial committee for comments and any possible fine tuning, Arora said,”From here, the document would have to be scrutinized for a final say by the Union cabinet, after which it would then be presented before Parliament.”

    While Arora declined to give a time frame under which this process would move forward, he expressed confidence that from his ministry’s end, the law would be ready “at the soonest”.

    Queried about the role of the current regulator for both the telecom and broadcast sector, Telecom Regulatory Authority of India (Trai), Arora noted that the challenges for the broadcast industry and telecom are different. First, it is important that convergence is facilitated within the broadcast sector. After that one can look at facilitating convergence between sectors i.e. broadcast and telecom. The regulatory body will work towards ensuring that the fruits of development are not vitiated by adversarial relations. “The aim of regulation is to preserve development. We will also be coming out with a regulation on content code,” he said.

    Ficci is assisting in formulating the draft of the regulation. The Group of Ministers (GoM) who concentrate on the Ice industry will fine-tune it. Then it will be sent to the cabinet. It will be passed when the cabinet approves of it. A further announcement on this regulation is expected in the coming weeks.

    Basically it is aimed at being a self regulatory mechanism. Arora however conceded that regulation always lags behind technological changes. The broadcast industry has been no exception. He also stressed the importance of content providers and creators reaching remote areas of the country. “Whether it is cable, DTH, cinema halls, no villager should be left behind. If we work on this, then the potential will be double than what has already been achieved.”

    Arora also highlighted the concern of piracy. He said that the government has been working with Ficci on the Optical Disc Law and this work will continue in the months ahead. “The reason why we approach the industry is that we want to have a regulatory framework that helps the industry move forward.”

    “Another important area that is growing is animation and gaming. We need investment from foreign players and leaders in this area. The challenge for us is to attract foreign firms in this area. At this time, there are foreign firms coming into India while Indian firms travel abroad. Foreign firms bring their brand in. However, Indian firms when they go abroad do so under an international brand. The exception is the Indian film industry and for this I want to congratulate them,” said Arora.

  • FICCI’s report on the entertainment industry projects optimistic figures

    FICCI’s report on the entertainment industry projects optimistic figures

    The Federation of Indian Chambers of Commerce and Industry (FICCI) has compiled a report “The Indian Entertainment Industry: Strategy & Vision” with the assistence of Arthur Anderson. It was officially released at the “International Conference on the Business of Entertainment: India-Opportunities in the 21st Century” held in Mumbai on 30 March, 2000.

    The report presents very optimistic figures pertaining to the entertainment industry and makes some recommendations to the government to facilitate the growth of the industry. It expects the turnover of the entertainment industry to touch Rs 600 billion. The report says that the future of television broadcasting belongs to the satellite channels. The market of regional channels is huge with more and more players like Zee and Broadcast Worldwide making a foray into the regional channel market. Even the niche channels like Nickelodeon, Maharishi, Cartoon network, Fashion TV, ESPN, Discovery, Channel V etc have a tremendous potential and their huge success indicates the fragmentation of audience. Regarding the Direct-To-Home (DTH) mode of distribution of television channels, the report says that it too has a tremendous potential and if the segment is opened up, there would be 1 million DTH homes in India by 2002.

    FICCI recommends that the government should lift the ban on the use of KU Band reception equipments as it will be incongruent in a scenario of freely viewable television channels over the Internet. It also suggests that the government should privatise the terrestrial network along with introduction of DTH which will enable the smaller cities to receive satellite channels as the cable operators ignore that segment. Another important point highlighted is the ammendment in the conditions for the presumptive rate of taxation of foreign companies which stands at the rate of 10% of deemed profits. A legislation clarifying the taxation of foreign telecasting companies is demanded.

    Development of about two to three earth stations in India within the next six to seven years would generate revenues between $12 million to $23 million as Indian as well as foreign channels would consider uplinking from India. The Government can generate revenues between $12 million to $23 million by leasing a part of its terrestrial network. The level of employment can double from the existing 2,50,000 people in the next three to five years. The growth in the broadcasting industry will simulate a similar trend in industries such as the television software industry, film industry, the music industry and even the equipment and hardware manufacturing industry which directly depend on the broadcasting sector.

    In the cable television sector, FICCI has requested the government to rectify the hinderences in the growth of the cable television market due to restrictions on foreign equity participation and the short-sightedness of the Cable Television (Networks) Act, 1995 and the archaic Indian Telegraphs Act, 1885. The growth of the cable television industry would help the government in generating more revenues in the form of taxes. The penetration of Internet to the common man can also increase with the growth of the cable television industry. Employment in this sector stands at 2,50,000 people. Additional 4,00,000 peaple can be employed in the next three to five years.

    On the television software side, FICCI has requested the government to nominate a representative who would be an active member and assist in industry issues like hardware insurance, copyright protection, etc. The government should also facilitate the growth of training institutions focussing on software development that would help the students learn modern techniques on up-to-date equipment and be aware of the dynamic trends in the entertainment industry. The television software and entertainment companies should also benefit similarly from the 10% listing criterion currently enjoyed by infotech companies as it would help in giving adequate ESOPs. Another benefit of utilising 100% proceedings of funds raised through ADR/GDR issues to acquire overseas companies is enjoyed only by IT industries and this benefit should also be made available to other companies.

    Owing to the increase in revenues in this segment to $2,093 million by 2005, the government’s tax collections will rise to $318 million. If proper and adequate incentives are provided by the government, the export earnings from this segment will rise to $233 million within the next two years, from the current $81 million. The industry expects this figure to touch $1.356 billion by the year 2005. Direct and indirect employment will rise from the current level of 1 million to 2 million by the year 2005.

  • Indian media Rs. 837 bn by 2010: Ficci

    Indian media Rs. 837 bn by 2010: Ficci

    DELHI: The Indian entertainment and media (E&M) industry is poised to grow at 19 per cent compound annual growth rate (CAGR) to reach Rs 837.4 billion by 2010 from Rs. 353 billion (Rs 35,300 crore), according to a new study.

    The television segment is slated to grow from its present size of Rs 148 billion to Rs 427 billion by 2010, according to a Federation of Indian Chambers of Commerce and Industry ( FICCI) and PricewaterhouseCoopers (PwC) report titled Indian Entertainment and Media Industry — Unravelling the potential.

    The radio sector is projected to grow four times to Rs.12,000 million by 2010, while filmed entertainment is slated to reach Rs 153 billion during.

    The print medium, according to the study is poised to grow from the present size of Rs 109 billion to Rs 195 billion.

    Economic growth, rising income levels, consumerism, coupled with technological advancements and policy initiatives taken by the Indian government, which are encouraging the inflow of investment, will prove to be the key drivers for the entertainment and media industry.

    The industry has been forecast to outperform the economic growth in each year till 2010.

    Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends a statement quoted Deepak Kapoor, executive director of PwC and leader for the organisations Entertainment & Media Practice in India, as saying.

    Today media penetration is poor in lower socio-economic classes, but efforts to increase it even slightly are likely to deliver much higher results, simply due to the absolute numbers being large, he added.

    Strong economic growth, rising consumer spending and regulatory corrections are drawing foreign investments in most segments of the E&M industry, especially the print media.