Tag: production

TV production temporarily impacted by cursed Rs 500-1000 notes

MUMBAI: In what may be called a Herculean step, PM Narendra Modi banned Rs. 500 and Rs. 1000 notes as of midnight intervening 8 and 9 November. His live television broadcast came as a surprise to millions of unassuming Indians and the world at large, to say the least.

Once understanding of the gravity of his announcement hit, throngs rushed to the ATMs, super markets, and chemist shops in a bid to rid themselves of the cursed notes which were to transform into waste paper overnight. In fact, retail shopping giant Big Bazaar, luxe watch chain Ethos, among many others seized this opportunity and allowed shoppers in till midnight, rightly expecting a rush. Petrol stations saw long queues even as late as the night of 9 November as desperate Indians tried to shed their 500 and 1000 notes. Foreign tourists despaired about the dud notes they had in their possession, as they neither hold bank account or post office accounts; the only currency they had was useless to them.

By demonetizing Rs 500 and Rs 1000 notes, Modi has taken a bold stance to curb the raging black money menace and counterfeit currency that has been gnawing at the country’s economy for decades. The speed at which everything had transpired was astonishing, and many netizens lauded the move on social media.

While this historic move is expected to contribute greatly towards nation-building, the transition phase will not be smooth. With banks shut for another day, ATMs dysfunctional temporarily until new legit denominations are restored in the banking system, life is proving tough for the public, to put it mildly. Different sectors have braced up for the varied impact this decision will bring, including the Indian television production industry.

“For production houses like us, there are certain requirements for action props — flowers, food items, etc, which we usually buy in cash. Moreover, everyone’s travel and other conveyance compensation are also paid in cash. Not to mention the daily labour and daily-wage workers that a shoot employs… so yes, this ban has definitely created an a problem, especially with the banks shut,” explains Sol Production’s Fazila Allana.

“Our ongoing shooting in Delhi for the show ‘Small Money Big Makeover’ which airs on FYI is currently stuck. It requires us to go out and buy stuff from the local market, and with today’s cash crunch situation, that is difficult,” she adds.

Allana isn’t hindered by that, however, as she strongly believes that it is only temporary. “In the long term, I believe it is good for the industry. “A lot of these union workers often used to insist on cash payments, but now this sector can be regulated more effectively.”

Asked if any of the long-running daily shows would be affected by this temporary turmoil, Allana reassured that it was highly unlikely. “Mega serials, as they are often called, will be the least affected as their shoots and contracts with artistes etc mostly operate on a monthly basis. They might be slightly inconvenienced by the sudden prop requirements, but that is all.”

Allana, however, expressed concern over the lack of clarity on the upper limits of withdrawal for companies and the corporate, as it will be next to impossible to function if the cap for company usage is also Rs 2000 per day.

BBC Worldwide India SVP & GM Myleeta Aga has welcomed the Prime Minister’s bold move calling it ” good to happen” to our industry.

“There will be inconvenience, but we should all manage the inconvenience. It won’t stop our work. We mostly function with partners with whom we have long-term associations. They too understand the current situation, and are cooperating accordingly. We can use credit notes and the right available denominations for the next few days. As long as they are providing a legit service and are being paid in a legit way, there is nothing to worry about,” she adds.

“The industry simply needs to be mindful while making cash payments in these two to three days,” says the optimistic CEO of The Contiloe Entertainment, Abhimanyu Singh.

Asked if the TV industry will be majorly affected by this crackdown on black money hoarders, Singh says, “I don’t think the TV industry has something to worry about, most of our accounts are clean and every transaction is accounted for.”

“In the short run, businesses will have to compromise with the change but I have faith the government has thought this out, and will effectively take action to normalise the situation. I don’t believe the prime minister would want businesses to shut down,” Singh added.

November 10, 2016
TV production temporarily impacted by cursed Rs 500-1000 notes

MUMBAI: In what may be called a Herculean step, PM Narendra Modi banned Rs. 500 and Rs. 1000 notes as of midnight intervening 8 and 9 November. His live television broadcast came as a surprise to millions of unassuming Indians and the world at large, to say the least.

Once understanding of the gravity of his announcement hit, throngs rushed to the ATMs, super markets, and chemist shops in a bid to rid themselves of the cursed notes which were to transform into waste paper overnight. In fact, retail shopping giant Big Bazaar, luxe watch chain Ethos, among many others seized this opportunity and allowed shoppers in till midnight, rightly expecting a rush. Petrol stations saw long queues even as late as the night of 9 November as desperate Indians tried to shed their 500 and 1000 notes. Foreign tourists despaired about the dud notes they had in their possession, as they neither hold bank account or post office accounts; the only currency they had was useless to them.

By demonetizing Rs 500 and Rs 1000 notes, Modi has taken a bold stance to curb the raging black money menace and counterfeit currency that has been gnawing at the country’s economy for decades. The speed at which everything had transpired was astonishing, and many netizens lauded the move on social media.

While this historic move is expected to contribute greatly towards nation-building, the transition phase will not be smooth. With banks shut for another day, ATMs dysfunctional temporarily until new legit denominations are restored in the banking system, life is proving tough for the public, to put it mildly. Different sectors have braced up for the varied impact this decision will bring, including the Indian television production industry.

“For production houses like us, there are certain requirements for action props — flowers, food items, etc, which we usually buy in cash. Moreover, everyone’s travel and other conveyance compensation are also paid in cash. Not to mention the daily labour and daily-wage workers that a shoot employs… so yes, this ban has definitely created an a problem, especially with the banks shut,” explains Sol Production’s Fazila Allana.

“Our ongoing shooting in Delhi for the show ‘Small Money Big Makeover’ which airs on FYI is currently stuck. It requires us to go out and buy stuff from the local market, and with today’s cash crunch situation, that is difficult,” she adds.

Allana isn’t hindered by that, however, as she strongly believes that it is only temporary. “In the long term, I believe it is good for the industry. “A lot of these union workers often used to insist on cash payments, but now this sector can be regulated more effectively.”

Asked if any of the long-running daily shows would be affected by this temporary turmoil, Allana reassured that it was highly unlikely. “Mega serials, as they are often called, will be the least affected as their shoots and contracts with artistes etc mostly operate on a monthly basis. They might be slightly inconvenienced by the sudden prop requirements, but that is all.”

Allana, however, expressed concern over the lack of clarity on the upper limits of withdrawal for companies and the corporate, as it will be next to impossible to function if the cap for company usage is also Rs 2000 per day.

BBC Worldwide India SVP & GM Myleeta Aga has welcomed the Prime Minister’s bold move calling it ” good to happen” to our industry.

“There will be inconvenience, but we should all manage the inconvenience. It won’t stop our work. We mostly function with partners with whom we have long-term associations. They too understand the current situation, and are cooperating accordingly. We can use credit notes and the right available denominations for the next few days. As long as they are providing a legit service and are being paid in a legit way, there is nothing to worry about,” she adds.

“The industry simply needs to be mindful while making cash payments in these two to three days,” says the optimistic CEO of The Contiloe Entertainment, Abhimanyu Singh.

Asked if the TV industry will be majorly affected by this crackdown on black money hoarders, Singh says, “I don’t think the TV industry has something to worry about, most of our accounts are clean and every transaction is accounted for.”

“In the short run, businesses will have to compromise with the change but I have faith the government has thought this out, and will effectively take action to normalise the situation. I don’t believe the prime minister would want businesses to shut down,” Singh added.

November 10, 2016
BBC Worldwide India: Women team makes fiction push

MUMBAI: Keeping the viewers glued to their television screens on prime time to cheer for their favourite Jhalak star with each new season of Jhalak Dikhhla Jaa, getting them riled up over the closer- to-home love stories in Dil ko phir Aaj jeene ki Tamanaa hai, taking the nation aback with television’s first ever gay relationship in Kaisi Yeh Yaariaan, and breaking the gender moulds with Girls On Top — BBC Worldwide India has had a very busy year and it doesn’t look like it’s slowing down anytime soon.

Girls On Top

While it’s been busy signing a joint venture with Sony Pictures Network to launch Sony BBC Earth, producing local productions of BBC Worldwide formats like Aaj Ki Raat Hai Zindagi (Tonight’s the Night) and exploring interesting partnerships in the digital space with its finished content like Doctor Who, Top Gear and Sherlock, the company’s non-production businesses has driven the revenues significantly in the past year.

“I genuinely feel that we have done so much and have so much more to look forward to this year. The team’s been kept busy between big and small projects. We haven’t taken any breaks,” expresses BBC Worldwide India SVP and GM Myleeta Aga.

Myleeta Aga

As head honcho, Aga wears many hats. She is responsible for creative content development in both the fiction and nonfiction space and for partnerships in the market as well as new business development. She also manages talent and overall growth within the organisation. When asked how she goes about fulfilling these distinct and key roles, she reveals that she is tuned in with everything but isn’t hands-on with each and every activity.

“I run multiple businesses within BBC Worldwide and I have a large team that I look after. My way of managing is by hiring great people and trusting them to do a good job. I don’t interfere in the day-to-day details. Of course, if you ask me about any specific information on a show that’s in production, or any data on a commercial deal in place, I have an answer – thanks to my team that keeps me up to date. We discuss and consult about everything we do. But you can’t scale if you do everything on your own,” Aga says.

The production business within BBC Worldwide in India has evolved in the last 12 months – the amount of fiction content that the organisation has churned out has increased . “This is the first year that we have had as many productions in fiction as we’ve had in non-fiction,” Aga says proudly and rightly so. Breaking assumptions as a corporate company that ‘only produces good nonfiction content’ and sinking teeth in to the highly competitive fiction market didn’t always come easy for the organisation.

To not depend just on co-productions and engage in a larger creative playing field within the market, it was necessary to cultivate the skill sets from within the organisation. And that was what Aga did three years ago when she made the decision for BBC Worldwide India to also operate in the fiction space.

“When we decided to invest in talent in fiction, I knew that it would take us years to change the mind-set in the industry. The industry needed convincing that there really aren’t separate skills needed for fiction and nonfiction. One is ultimately telling a story, whether it is of a reality star or an actor in a soap – the only difference is in the way you execute it.”

It was a heady risk to take. Fortunately, it is one that has paid off.

Today Aga proudly treasures the fact that she has an uncompromising team ready to tackle any kind of content across fiction and nonfiction. Interestingly, BBC’s top production executives in India are all women. Yes, you read it right, all women.

Richa Yamini, creative head for fiction content and production, was the first one to be picked in the fiction category. Her journey with BBC includes shows like Kaisi Yeh Yaariyan and DD’s Dil Ko Aaj Fir Jine Ki Tamanna Hai. “BBC was perceived as a nonfiction company when I joined. We started off with little steps to build awareness for our fiction content. We did a telefilm for Star Plus, followed by some coproduction work with Life Ok and Bindass. Then, we got our first fiction show with MTV. We’ve had a steady flow of productions since then.

Richa Yamini

Yamini works closely with the head of fiction production, Dixitaa Thakar who joined the team almost three and half years ago. With 32 years of production experience under her belt, Thakar is a veteran whose guidance has helped grow the fiction category within the organisation to its current stature. “It was my responsibility to train the existing production team on the specific nuances of producing fiction shows. There was a lot of unlearning and relearning involved in the process.”

Dixitaa Thakar

The problem, as Yamini and Thakar both point out, lay in the general assumption amongst broadcasters that a corporate organization like BBC Worldwide wouldn’t do good job in fiction. “Shows are not given to production houses, but to individual well known writers, irrespective of the production houses he or she works in partnership with. We are changing this practice.” Yamini explained.

The third pillar in BBC Worldwide’s all girl production team is Soniya Kulkarni who heads nonfiction — the company’s stronghold. With a reputation to maintain, Kulkarni naturally works under a lot of pressure to keep up the standards, especially when the nonfiction pie is too thin in any given market.

“The healthiest of broadcasters do two hours of nonfiction programing in a week, as compared to thirty hours of fiction. So to get a new show on or to continue a series on is a struggle year on year. While we have been doing Jhalak for nine years now and in spite of its growing popularity, we can’t depend on just one big format for the business. Thanks to the huge catalogue of formats that BBC has, we have been able to introduce some good shows to India, like, Aaj Ki Raat Hai Zindagi, the Tonight’s the Night format from the BBC. But a lot of the bread and butter of nonfiction lies in developing home grown formats in the market, and we are dedicated to that,” Kulkarni elaborates.

Creative producer Palki Malhotra, who had worked nearly six years under an individual producer, joined BBC Worldwide to help build and grow the fiction chapter. She took the job as it offered her the freedom of working within a start-up, as well as the security of a job, as she puts it. “BBC hasn’t restricted me within the fiction and nonfiction boundaries. While I have worked in a show like Bindass Naach, I am also having fun producing a show like Girls On Top.”

Given the legacy of brand BBC, the production house may give off the assumption of a corporate work environment, but Aga paints a different picture, while acknowledging the benefits of working for a large organisation. “I prefer not to think of us as a corporation. Our work environment is informal with an open work space, where we share desks and executives don’t lock themselves in cabins. Yes, we have systems and processes, and we have values that we align ourselves with. All these things empower the team to have a long term vision rather than simply a short term target.”

Soniya, Palki and Deepali

Commercial head Deepali Handa seconds the thought. “The company puts the brand and its image and relations with the stakeholders first. Something as simple as treating your actors well, not upsetting your stakeholders and respecting our work, may sound common sense, but it’s exactly these tenets that have clients coming back to us over and over again.” Handa asserts that BBC’s policies makes it easier for actors, artists, crews and other contractors to have a conducive working experience with the team.

BBC Worldwide has also done some fascinating work in the past in branded content Asian Paints Har Ghar Kuch Kehta Hai which aired for the first time on Colors in 2013 followed by a second season in 2014 with Vinay Pathak as the host, was developed by a dedicated team.
When asked if having a dedicated branded content arm puts her in an advantage to address the emerging requirements of the digital space, Aga answers, “Right now a lot of work on digital does revolve around the branded content category. But ultimately digital is just a platform. An advertiser would prefer to put branded content, a content aggregator would look at straightforward content, while if you partner with a broadcaster, you will look at a catch up service. Each of these OTT players have different requirements and given the fact that we can cater to all of them puts us at an advantage. Eventually people are looking for ideas that work,” Aga explains.

If all this isn’t enough to keep Aga and her team occupied, BBC Worldwide in India also keeps busy, working with broadcasters to put award-winning and highly rated BBC programmes onto their platforms. For example, Doctor Who on FX has performed incredibly well, as has Sherlock, Orphan Black and Top Gear on AXN. It has also worked with OTT platforms like Hungama and Vuclip to deliver award-winning and highly rated shows like Prey, War and Peace and Doctor Foster.
So what’s next for the very busy team at BBC Worldwide in India? Well, in addition to their already hectic schedules, they’re also in talks with several other local OTT players to provide original content on the web including nonfiction shows. Many of these will see the light of day, undoubtedly. And when they do, it will be more power to the BBC top team.

June 22, 2016
BBC Worldwide India: Women team makes fiction push

MUMBAI: Keeping the viewers glued to their television screens on prime time to cheer for their favourite Jhalak star with each new season of Jhalak Dikhhla Jaa, getting them riled up over the closer- to-home love stories in Dil ko phir Aaj jeene ki Tamanaa hai, taking the nation aback with television’s first ever gay relationship in Kaisi Yeh Yaariaan, and breaking the gender moulds with Girls On Top — BBC Worldwide India has had a very busy year and it doesn’t look like it’s slowing down anytime soon.

Girls On Top

While it’s been busy signing a joint venture with Sony Pictures Network to launch Sony BBC Earth, producing local productions of BBC Worldwide formats like Aaj Ki Raat Hai Zindagi (Tonight’s the Night) and exploring interesting partnerships in the digital space with its finished content like Doctor Who, Top Gear and Sherlock, the company’s non-production businesses has driven the revenues significantly in the past year.

“I genuinely feel that we have done so much and have so much more to look forward to this year. The team’s been kept busy between big and small projects. We haven’t taken any breaks,” expresses BBC Worldwide India SVP and GM Myleeta Aga.

Myleeta Aga

As head honcho, Aga wears many hats. She is responsible for creative content development in both the fiction and nonfiction space and for partnerships in the market as well as new business development. She also manages talent and overall growth within the organisation. When asked how she goes about fulfilling these distinct and key roles, she reveals that she is tuned in with everything but isn’t hands-on with each and every activity.

“I run multiple businesses within BBC Worldwide and I have a large team that I look after. My way of managing is by hiring great people and trusting them to do a good job. I don’t interfere in the day-to-day details. Of course, if you ask me about any specific information on a show that’s in production, or any data on a commercial deal in place, I have an answer – thanks to my team that keeps me up to date. We discuss and consult about everything we do. But you can’t scale if you do everything on your own,” Aga says.

The production business within BBC Worldwide in India has evolved in the last 12 months – the amount of fiction content that the organisation has churned out has increased . “This is the first year that we have had as many productions in fiction as we’ve had in non-fiction,” Aga says proudly and rightly so. Breaking assumptions as a corporate company that ‘only produces good nonfiction content’ and sinking teeth in to the highly competitive fiction market didn’t always come easy for the organisation.

To not depend just on co-productions and engage in a larger creative playing field within the market, it was necessary to cultivate the skill sets from within the organisation. And that was what Aga did three years ago when she made the decision for BBC Worldwide India to also operate in the fiction space.

“When we decided to invest in talent in fiction, I knew that it would take us years to change the mind-set in the industry. The industry needed convincing that there really aren’t separate skills needed for fiction and nonfiction. One is ultimately telling a story, whether it is of a reality star or an actor in a soap – the only difference is in the way you execute it.”

It was a heady risk to take. Fortunately, it is one that has paid off.

Today Aga proudly treasures the fact that she has an uncompromising team ready to tackle any kind of content across fiction and nonfiction. Interestingly, BBC’s top production executives in India are all women. Yes, you read it right, all women.

Richa Yamini, creative head for fiction content and production, was the first one to be picked in the fiction category. Her journey with BBC includes shows like Kaisi Yeh Yaariyan and DD’s Dil Ko Aaj Fir Jine Ki Tamanna Hai. “BBC was perceived as a nonfiction company when I joined. We started off with little steps to build awareness for our fiction content. We did a telefilm for Star Plus, followed by some coproduction work with Life Ok and Bindass. Then, we got our first fiction show with MTV. We’ve had a steady flow of productions since then.

Richa Yamini

Yamini works closely with the head of fiction production, Dixitaa Thakar who joined the team almost three and half years ago. With 32 years of production experience under her belt, Thakar is a veteran whose guidance has helped grow the fiction category within the organisation to its current stature. “It was my responsibility to train the existing production team on the specific nuances of producing fiction shows. There was a lot of unlearning and relearning involved in the process.”

Dixitaa Thakar

The problem, as Yamini and Thakar both point out, lay in the general assumption amongst broadcasters that a corporate organization like BBC Worldwide wouldn’t do good job in fiction. “Shows are not given to production houses, but to individual well known writers, irrespective of the production houses he or she works in partnership with. We are changing this practice.” Yamini explained.

The third pillar in BBC Worldwide’s all girl production team is Soniya Kulkarni who heads nonfiction — the company’s stronghold. With a reputation to maintain, Kulkarni naturally works under a lot of pressure to keep up the standards, especially when the nonfiction pie is too thin in any given market.

“The healthiest of broadcasters do two hours of nonfiction programing in a week, as compared to thirty hours of fiction. So to get a new show on or to continue a series on is a struggle year on year. While we have been doing Jhalak for nine years now and in spite of its growing popularity, we can’t depend on just one big format for the business. Thanks to the huge catalogue of formats that BBC has, we have been able to introduce some good shows to India, like, Aaj Ki Raat Hai Zindagi, the Tonight’s the Night format from the BBC. But a lot of the bread and butter of nonfiction lies in developing home grown formats in the market, and we are dedicated to that,” Kulkarni elaborates.

Creative producer Palki Malhotra, who had worked nearly six years under an individual producer, joined BBC Worldwide to help build and grow the fiction chapter. She took the job as it offered her the freedom of working within a start-up, as well as the security of a job, as she puts it. “BBC hasn’t restricted me within the fiction and nonfiction boundaries. While I have worked in a show like Bindass Naach, I am also having fun producing a show like Girls On Top.”

Given the legacy of brand BBC, the production house may give off the assumption of a corporate work environment, but Aga paints a different picture, while acknowledging the benefits of working for a large organisation. “I prefer not to think of us as a corporation. Our work environment is informal with an open work space, where we share desks and executives don’t lock themselves in cabins. Yes, we have systems and processes, and we have values that we align ourselves with. All these things empower the team to have a long term vision rather than simply a short term target.”

Soniya, Palki and Deepali

Commercial head Deepali Handa seconds the thought. “The company puts the brand and its image and relations with the stakeholders first. Something as simple as treating your actors well, not upsetting your stakeholders and respecting our work, may sound common sense, but it’s exactly these tenets that have clients coming back to us over and over again.” Handa asserts that BBC’s policies makes it easier for actors, artists, crews and other contractors to have a conducive working experience with the team.

BBC Worldwide has also done some fascinating work in the past in branded content Asian Paints Har Ghar Kuch Kehta Hai which aired for the first time on Colors in 2013 followed by a second season in 2014 with Vinay Pathak as the host, was developed by a dedicated team.
When asked if having a dedicated branded content arm puts her in an advantage to address the emerging requirements of the digital space, Aga answers, “Right now a lot of work on digital does revolve around the branded content category. But ultimately digital is just a platform. An advertiser would prefer to put branded content, a content aggregator would look at straightforward content, while if you partner with a broadcaster, you will look at a catch up service. Each of these OTT players have different requirements and given the fact that we can cater to all of them puts us at an advantage. Eventually people are looking for ideas that work,” Aga explains.

If all this isn’t enough to keep Aga and her team occupied, BBC Worldwide in India also keeps busy, working with broadcasters to put award-winning and highly rated BBC programmes onto their platforms. For example, Doctor Who on FX has performed incredibly well, as has Sherlock, Orphan Black and Top Gear on AXN. It has also worked with OTT platforms like Hungama and Vuclip to deliver award-winning and highly rated shows like Prey, War and Peace and Doctor Foster.
So what’s next for the very busy team at BBC Worldwide in India? Well, in addition to their already hectic schedules, they’re also in talks with several other local OTT players to provide original content on the web including nonfiction shows. Many of these will see the light of day, undoubtedly. And when they do, it will be more power to the BBC top team.

June 22, 2016
Telemundo Studios & Keshet International joins hand for Spanish series

MUMBAI: Telemundo Studios and Keshet International (KI) have announced a scripted deal to co-develop and produce a new original Spanish language series to air on Telemundo Network. The series will be the first Spanish language original production to be developed under the KI banner and will be co-produced with Telemundo Studios.

The development of the Spanish language series will be led by senior VP Perla Farias, Scripted Development for Telemundo Studios. The series will be produced by Telemundo Studios.

KI’s Head of Latin America, Kelly Wright, will oversee the project on behalf of the distribution and production group.

Telemundo Network is the #1 Spanish-language television network among adults 18-49 and adults 18-34, at 10PM timeslot, season-to-date. In addition, it is the #1 broadcast network in Q2 2016, regardless of language, among adults 18-34 during its Monday through Friday at 10PM, bolstered by the Telemundo Super Series such as “El Señor de Los Cielos,” “Señora Acero” and “La Querida del Centauro” competing against the largest broadcast English-language networks across the US.

“Keshet is known for producing powerful, unconventional and bold scripted series,” said Telemundo Network president Luis Silberwasser. “We are very excited to partner with Keshet on this development deal and about the prospects of what we can create together.”

“As we step up the pace of our expansion in Latin America, original development will be a top priority,” said Wright. “Telemundo produces excellent, gripping content that commands impressive numbers in the U.S., and this collaboration between our best developers will deliver a new pipeline of premium programming to the channel.”

The news comes during a period of rapid growth for KI in Latin America. It recently announced the hire of Frank Scheuermann as Head of Development and Production for the region, where he is charged with expanding the business’ local production and development capabilities.

June 7, 2016
Telemundo Studios & Keshet International joins hand for Spanish series

MUMBAI: Telemundo Studios and Keshet International (KI) have announced a scripted deal to co-develop and produce a new original Spanish language series to air on Telemundo Network. The series will be the first Spanish language original production to be developed under the KI banner and will be co-produced with Telemundo Studios.

The development of the Spanish language series will be led by senior VP Perla Farias, Scripted Development for Telemundo Studios. The series will be produced by Telemundo Studios.

KI’s Head of Latin America, Kelly Wright, will oversee the project on behalf of the distribution and production group.

Telemundo Network is the #1 Spanish-language television network among adults 18-49 and adults 18-34, at 10PM timeslot, season-to-date. In addition, it is the #1 broadcast network in Q2 2016, regardless of language, among adults 18-34 during its Monday through Friday at 10PM, bolstered by the Telemundo Super Series such as “El Señor de Los Cielos,” “Señora Acero” and “La Querida del Centauro” competing against the largest broadcast English-language networks across the US.

“Keshet is known for producing powerful, unconventional and bold scripted series,” said Telemundo Network president Luis Silberwasser. “We are very excited to partner with Keshet on this development deal and about the prospects of what we can create together.”

“As we step up the pace of our expansion in Latin America, original development will be a top priority,” said Wright. “Telemundo produces excellent, gripping content that commands impressive numbers in the U.S., and this collaboration between our best developers will deliver a new pipeline of premium programming to the channel.”

The news comes during a period of rapid growth for KI in Latin America. It recently announced the hire of Frank Scheuermann as Head of Development and Production for the region, where he is charged with expanding the business’ local production and development capabilities.

June 7, 2016
FICCI demands infrastructure status for broadcast industry in pre-budget memo

NEW DELHI: The Indian broadcast, cable and direct-to-home (DTH) sectors have been demanding a infrastructure status for the industry as well as seeking all benefits and incentives available for the infrastructure industry including the availability of finance at a concessional rate.

To this effect, the Indian Broadcasting Foundation (IBF) had earlier this month urged the Union Government to grant “Infrastructure Status” to the broadcasting industry.

Now, making this demand, the Entertainment Wing of FICCI has said in a pre-budget memorandum to Finance Minister Arun Jaitley that the sector should be allowed tax concessions as per Section 80-IA of the Income Tax Act.

The digitisation process and the deployment of set top boxes (STBs) are heavy capital oriented and thus require huge investments, which may force various amalgamations and thus they should be allowed to set off accumulated losses and unabsorbed depreciation allowances to be carried forward as per Section 72 A of the Act, the industry body said.

Parity with Manufacturing Industry under Section 72A of the Act

It also said that the disparity between the service and the manufacturing sector is very adversely affecting the growth and consolidation of the Service sector.

The tax benefits under Section 72A of the Act in respect of amalgamation or de-merger (carry forward and set off of accumulated loss and unabsorbed depreciation allowances) are currently limited to industrial undertakings or a ship, hotel, aircraft or banking. The definition of industrial undertaking should be widened to include service industry, broadcasters and content production companies.

Rationalisation of Indirect taxes

The rate of taxes, which range from 30 – 70 per cent, especially the entertainment tax imposed by the states, over and above the service tax, are punitive in nature, FICCI said, adding that such punitive level of taxation incentivises unhealthy practices, such as piracy, revenue leakage on account of under reporting of revenues, etc. It is important that the overall taxation level is brought down for the sector as a whole.

State Entertainment tax legislations levy high taxes on the subscription earned by cable operators and DTH operators. The non-availability of credit of central taxes against the state taxes and vice versa increases the tax burden on the entertainment industry. In addition to this, the Central Government has levied service tax at 14 per cent on the transfer of copyrights, which is already being taxed as ‘goods’ under the various state VAT legislations.

Payment for Content Production

FICCI said there is ambiguity since the tax authorities have been adopting a view that the payment towards production of content is in the nature of fees for technical services and subject to tax at the rate of 10 per cent under section 194J of the Act whereas Explanation III to section 194C of the Act clarifies that payments made towards a contract, concerning broadcasting and telecasting including production of programmes for such broadcasting or telecasting, would fall under the definition of ‘work’ for the purpose of section 194C of the Act.

It suggested that to avoid difference in positions adopted by the tax payer and tax department on applicability of relevant section and to mitigate resultant litigation and hardship, a clarification may be issued regarding appropriate classification of content production services and applicability of relevant section for withholding of taxes.

Carriage Fees/Placement Charges

FICCI has demanded that the Government should provide a clarification that the payments made towards carriage fees are not in the nature of royalty or fees for technical services and TDS is required to be made on such payments as per section 194C of the Act.

It said that the tax department is contending that since cable operators are providing technical services, payments made towards placement of channels is subject to TDS under section 194J of the Act.

Broadcasters pay placement or carriage fee to the cable and DTH operators to place their channel in prime bands, which in turn enhances the viewership of the channel. Such charges are paid under a contract merely for placing the channel on agreed frequency bands.

Deduction of tax at source under Section 194H on the “15% agency commission”

FICCI recommended a clarification that no taxes need to be deducted at source by broadcasters on the “15 per cent agency commission” as mentioned in the invoice raised by broadcasters to advertisement agency or advertisers.

FICCI said the 15 per cent agency commission mentioned by broadcasters in its invoices for ad airtime sale raised on ad agency or advertisers is merely a presentation in the invoices and not a real transaction. Neither the broadcasters nor ad agency recognises the same as revenue or expense. It is customary in nature, as is also evident from the fact that even on the invoices raised directly on advertisers; the said 15 per cent agency commission appears.

Broadcasters are not supposed to make any payments towards 15 per cent agency commission mentioned in the invoice, as there is no agreement or arrangement to pay such the commission with ad agencies or advertisers. In fact, broadcasters do not make any payment in respect of the said commission mentioned on the invoices.

At the outset, FICCI said that the Indian media and entertainment industry grew from Rs 918 billion in 2013 to Rs 1026 billion in 2014, registering an overall growth of 11.7 per cent. The industry is estimated to achieve a growth rate of 13 per cent in 2015 to touch Rs 1159 billion. The sector is projected to grow at a healthy CAGR of 13.9 per cent to reach Rs 1964 billion by 2019.

As per FICCI, television clearly continues to be the dominant segment but strong growth had been posted by new media sectors. Gaming and digital advertising recorded a strong growth of 22.4 per cent and 44.5 per cent compared to the previous year.

The benefits of Phase I and II of cable digital addressable system (DAS) rollout, and continued Phase III rollout are expected to contribute significantly to strong continued growth in the TV sector revenues and its ability to invest in and monetise content. The sector is expected to grow at a CAGR of 15.5 per cent over the period 2015-2019.

Tax Exemptions for Radio Broadcasting

While noting that radio is anticipated to see a spurt in growth after rollout of FM Phase III licensing, FICCI asked the Government to consider providing tax holiday of five years for new capital investment in Phase III; reduce customs duty on capital equipment for radio broadcasting to four per cent; and consider service tax exemption for billings to service recipients covered in the negative list.

Tax Holiday for five years for setting up of new screens

Noting that the film sector had shown a minimal growth of 0.9 per cent in 2014 over 2013, FICCI said there had been an increase in piracy, since the number of screens for viewing films had not increased in proportion to the increase in number of films and the number of people viewing these films.

FICCI said that it was essential to extend the benefit to cinema owners in terms of 80-IB of the Act to multiplexes constructed after March 2005 to encourage the set-up of multiplexes and thereby improve the density of cinema houses in the country. This will encourage setting up of new screens in India and help in improving screen density.

Reduction of prescribed time limit under Rule 9A and 9B

FICCI suggested that the existing period of 90 days before end of the financial year (under Rule 9A and 9B of IT Rules) is suitably reduced to grant relief to assessees whose feature films have incurred losses and have been released for exhibition in the last quarter of the financial year.

Under Rule 9A of the Income Tax Rules, if a film producer sells all rights of exhibition of his feature film, the entire cost of production is allowed as a deduction in computing the profits and gains of such previous year.

However, if the film producer does not sell all rights of exhibition of his film, it is released for exhibition on a commercial basis at least 90 days before end of the financial year and the film producer is eligible to claim deduction of the entire cost of production. Otherwise, a feature film is released for exhibition on a commercial basis within a period 90 days before end of the financial year and the producer is eligible to claim deduction of cost of production only up to a ceiling limit and any excess cost of production is carried forward to the next financial year. This ceiling limit is the amount of revenues generated by the feature film in the financial year.

In certain cases where not all rights of exhibition of a feature film are sold and it is released for exhibition on a commercial basis within 90 days before end of the financial year, the feature film performs poorly and it is exhibited only for a short duration. Consequently, the film producer may not recover costs. In such cases in view of the prevailing IT Rules, the film producers are unable to claim a deduction of entire production cost and, the loss is to be carried forward to the next financial year. Accordingly, such film producers are unable to claim losses in the year the feature film is released for exhibition despite no further scope of income. A similar situation exists in the case of expenditure of distribution rights in view of Rule 9B of IT Rules.

Exemption of Service Tax on major inputs/input services

FICCI recommended that major inputs / input services that are used in relation to theatrical rights in movies, be exempted from service tax. Since the major inputs/input services used in relation to revenue earned from theatrical rights are taxable, the CENVAT credit of service tax paid on such inputs/input services is blocked in the supply chain due to applicability of CCR. Eventually such taxes result in increase of the cost of production thereby defeating the purpose of providing an exemption on the output service.

Re-instatement of the Service Tax exemption on Transmission of digital cinema

FICCI also recommended reinstating the exemption to digital cinema service distributors, as it existed earlier under notification 12/2007 ST of 1 March, 2007, which had been rescinded with the introduction of the negative list.

Service tax on transmission of digital cinema is a direct cost to the producers since the same is in relation to theatrical exhibition of cinematograph film (which is an exempt service with effect from 1 April, 2013) and hence no credit can be availed of such service tax.

Clarity on export status of post-production services

FICCI asked for clarity on the inclusion of post-production activities in the exclusion to this Rule. Alternatively, the second proviso to the Rule 4(a) of the POPS Rules be re-worded.

Given the various technological advances in the Indian film industry, many Indian entities are hired by foreign producers for carrying post production activity. For such activities, the content is temporarily imported into India (either physically or electronically) and re-exported after completion of service. Post-production activities, which may be performed in India, do not find explicit mention in the proviso that carves out exceptions to the performance based rule in POPS Rules.

Service Tax exemption to on-screen advertising in cinemas

The industry body said on-screen advertising in cinemas and multiplexes should be exempted from levy of service tax.

After 1 October, 2014, the negative list of services was amended and on-screen advertising within cinemas is liable to service tax.

The on-screen advertising within cinemas caters to advertisers with small businesses, with limited resources. For large advertisers, on-screen advertising is a secondary medium of advertising at best and they have a small contribution to onscreen advertising within cinemas. The on-screen advertising forms an important source of revenue for the exhibitors, which are already reeling under the pressure of multiple taxes. Re-instatement of service tax on such revenue will only increase their tax burden.

Applicability of Service Tax on food and beverages sold within Cinemas

The food and beverages (F&B) sold in theatres during movies are subject to VAT under local state laws and the same is paid by the exhibitors. But with effect from 1 April, 2011, restaurant services became taxable whereby services rendered by any air-conditioned restaurant serving alcohol were made liable to service tax and later with effect from 2013 the condition of serving alcohol was withdrawn. However, it is still not clear whether the sale of F&B by cinema halls and multiplexes is covered in this service.

Unlike restaurants, there is no seating arrangement, no cutlery is provided and no waiter serves F&B and hence there is no element of service involved in any meaningful manner.

FICCI said levy of service tax is intended on “restaurants” rendering certain services and is not intended on sale of food, beverage and snacks from candy counters in cinema theatres.

Service Tax exemption on entry to award functions, musical performance etc.

The Union Budget of 2015 had amended the negative list of services and effectively withdrawn the unconditional service tax exemption, which was granted to tickets for award functions, music events, sports events etc. With effect from June 2015, service tax is payable when the consideration for admission to entertainment events such as award function, concert, pageant, sporting event etc. is more than Rs 500 per person.

However, FICCI said payment for admission to any event is already liable to a high state entertainment tax and levying of a service tax of 14 per cent over and above the high rates of entertainment imposes a high burden on the entertainment sector.

The industry body asked for a clarification to specify that the value of ticket for the purpose of levy of service tax on such admission (where the ticket price is more than Rs 500) should be the value excluding Entertainment tax. It also wanted clarification on if service tax is payable, the same should be computed on a value exclusive of Entertainment tax and accordingly no service tax should apply on entertainment tax amount.

Customs Duty exemption on film equipment under the ATA Carnet

The ATA Carnet permits duty free temporary admission of goods into a member country. The list of exempted products covers filming equipment too. However, there is no Customs Notification in order to exempt the import of filming equipment from the levy of Customs Duty, on the lines of the ATA Carnet.

FICCI recommended that Customs Duty should be exempted on film equipment under ATA Carnet. The film production equipment is very expensive and not easily available in all countries because of which the film producers are compelled to temporarily import the same on lease for the purpose of producing the film. In absence of a customs notification to exempt filming equipment, the ATA Carnet duty exemption benefit cannot be extended to import of filming equipment.

These imports significantly increase the burden of tax on the film producers.

Proposals for Animation, Gaming and VFX Industries

FICCI also made some recommendations for the Animation, Gaming & Visual Effects (VFX) industries.

It asked for a 10-year tax holiday for the Animation, Gaming, and VFX industries; and removal of withholding tax on revenues accruing from sales of mobile games in non-India markets as well as removal of withholding tax on the development contracts given to mobile game developers outside India.

FICCI also asked for removal of withholding tax paid by expats working in India for Indian mobile game development companies.

The Minimum Alternate Tax (MAT) applicability for units undertaking animation work in SEZ should be withdrawn to encourage export of animated contents.

The industry body wanted restoration of STPI advantage scheme for AVGC or ITES for another 10 to 20 years and cover/encourage exports as well as IP creation.

To promote domestic gaming market, excise duty on local manufacture should be brought down to nil (similar to film and music industry). This will enable CVD to be brought to zero also. The effective reduction in taxes would be around 15 per cent. Import duty on consoles (gaming hardware) to be brought down to zero per cent to increase the installed base to enable the local developer ecosystem to flourish.

There should be a provision of 50 per cent reimbursable MDA (Market Development Assistance) for travel and registration fees to international market events.

The Government should extend support under Market Development Assistance (MDA) activity for Indian companies to exhibit by setting Indian Pavilions in the world markets. What is needed is to help bringing local production companies to international markets, collect and disseminate information and support creating the infrastructure needed for a healthy media market to develop.

January 27, 2016
FICCI demands infrastructure status for broadcast industry in pre-budget memo

NEW DELHI: The Indian broadcast, cable and direct-to-home (DTH) sectors have been demanding a infrastructure status for the industry as well as seeking all benefits and incentives available for the infrastructure industry including the availability of finance at a concessional rate.

To this effect, the Indian Broadcasting Foundation (IBF) had earlier this month urged the Union Government to grant “Infrastructure Status” to the broadcasting industry.

Now, making this demand, the Entertainment Wing of FICCI has said in a pre-budget memorandum to Finance Minister Arun Jaitley that the sector should be allowed tax concessions as per Section 80-IA of the Income Tax Act.

The digitisation process and the deployment of set top boxes (STBs) are heavy capital oriented and thus require huge investments, which may force various amalgamations and thus they should be allowed to set off accumulated losses and unabsorbed depreciation allowances to be carried forward as per Section 72 A of the Act, the industry body said.

Parity with Manufacturing Industry under Section 72A of the Act

It also said that the disparity between the service and the manufacturing sector is very adversely affecting the growth and consolidation of the Service sector.

The tax benefits under Section 72A of the Act in respect of amalgamation or de-merger (carry forward and set off of accumulated loss and unabsorbed depreciation allowances) are currently limited to industrial undertakings or a ship, hotel, aircraft or banking. The definition of industrial undertaking should be widened to include service industry, broadcasters and content production companies.

Rationalisation of Indirect taxes

The rate of taxes, which range from 30 – 70 per cent, especially the entertainment tax imposed by the states, over and above the service tax, are punitive in nature, FICCI said, adding that such punitive level of taxation incentivises unhealthy practices, such as piracy, revenue leakage on account of under reporting of revenues, etc. It is important that the overall taxation level is brought down for the sector as a whole.

State Entertainment tax legislations levy high taxes on the subscription earned by cable operators and DTH operators. The non-availability of credit of central taxes against the state taxes and vice versa increases the tax burden on the entertainment industry. In addition to this, the Central Government has levied service tax at 14 per cent on the transfer of copyrights, which is already being taxed as ‘goods’ under the various state VAT legislations.

Payment for Content Production

FICCI said there is ambiguity since the tax authorities have been adopting a view that the payment towards production of content is in the nature of fees for technical services and subject to tax at the rate of 10 per cent under section 194J of the Act whereas Explanation III to section 194C of the Act clarifies that payments made towards a contract, concerning broadcasting and telecasting including production of programmes for such broadcasting or telecasting, would fall under the definition of ‘work’ for the purpose of section 194C of the Act.

It suggested that to avoid difference in positions adopted by the tax payer and tax department on applicability of relevant section and to mitigate resultant litigation and hardship, a clarification may be issued regarding appropriate classification of content production services and applicability of relevant section for withholding of taxes.

Carriage Fees/Placement Charges

FICCI has demanded that the Government should provide a clarification that the payments made towards carriage fees are not in the nature of royalty or fees for technical services and TDS is required to be made on such payments as per section 194C of the Act.

It said that the tax department is contending that since cable operators are providing technical services, payments made towards placement of channels is subject to TDS under section 194J of the Act.

Broadcasters pay placement or carriage fee to the cable and DTH operators to place their channel in prime bands, which in turn enhances the viewership of the channel. Such charges are paid under a contract merely for placing the channel on agreed frequency bands.

Deduction of tax at source under Section 194H on the “15% agency commission”

FICCI recommended a clarification that no taxes need to be deducted at source by broadcasters on the “15 per cent agency commission” as mentioned in the invoice raised by broadcasters to advertisement agency or advertisers.

FICCI said the 15 per cent agency commission mentioned by broadcasters in its invoices for ad airtime sale raised on ad agency or advertisers is merely a presentation in the invoices and not a real transaction. Neither the broadcasters nor ad agency recognises the same as revenue or expense. It is customary in nature, as is also evident from the fact that even on the invoices raised directly on advertisers; the said 15 per cent agency commission appears.

Broadcasters are not supposed to make any payments towards 15 per cent agency commission mentioned in the invoice, as there is no agreement or arrangement to pay such the commission with ad agencies or advertisers. In fact, broadcasters do not make any payment in respect of the said commission mentioned on the invoices.

At the outset, FICCI said that the Indian media and entertainment industry grew from Rs 918 billion in 2013 to Rs 1026 billion in 2014, registering an overall growth of 11.7 per cent. The industry is estimated to achieve a growth rate of 13 per cent in 2015 to touch Rs 1159 billion. The sector is projected to grow at a healthy CAGR of 13.9 per cent to reach Rs 1964 billion by 2019.

As per FICCI, television clearly continues to be the dominant segment but strong growth had been posted by new media sectors. Gaming and digital advertising recorded a strong growth of 22.4 per cent and 44.5 per cent compared to the previous year.

The benefits of Phase I and II of cable digital addressable system (DAS) rollout, and continued Phase III rollout are expected to contribute significantly to strong continued growth in the TV sector revenues and its ability to invest in and monetise content. The sector is expected to grow at a CAGR of 15.5 per cent over the period 2015-2019.

Tax Exemptions for Radio Broadcasting

While noting that radio is anticipated to see a spurt in growth after rollout of FM Phase III licensing, FICCI asked the Government to consider providing tax holiday of five years for new capital investment in Phase III; reduce customs duty on capital equipment for radio broadcasting to four per cent; and consider service tax exemption for billings to service recipients covered in the negative list.

Tax Holiday for five years for setting up of new screens

Noting that the film sector had shown a minimal growth of 0.9 per cent in 2014 over 2013, FICCI said there had been an increase in piracy, since the number of screens for viewing films had not increased in proportion to the increase in number of films and the number of people viewing these films.

FICCI said that it was essential to extend the benefit to cinema owners in terms of 80-IB of the Act to multiplexes constructed after March 2005 to encourage the set-up of multiplexes and thereby improve the density of cinema houses in the country. This will encourage setting up of new screens in India and help in improving screen density.

Reduction of prescribed time limit under Rule 9A and 9B

FICCI suggested that the existing period of 90 days before end of the financial year (under Rule 9A and 9B of IT Rules) is suitably reduced to grant relief to assessees whose feature films have incurred losses and have been released for exhibition in the last quarter of the financial year.

Under Rule 9A of the Income Tax Rules, if a film producer sells all rights of exhibition of his feature film, the entire cost of production is allowed as a deduction in computing the profits and gains of such previous year.

However, if the film producer does not sell all rights of exhibition of his film, it is released for exhibition on a commercial basis at least 90 days before end of the financial year and the film producer is eligible to claim deduction of the entire cost of production. Otherwise, a feature film is released for exhibition on a commercial basis within a period 90 days before end of the financial year and the producer is eligible to claim deduction of cost of production only up to a ceiling limit and any excess cost of production is carried forward to the next financial year. This ceiling limit is the amount of revenues generated by the feature film in the financial year.

In certain cases where not all rights of exhibition of a feature film are sold and it is released for exhibition on a commercial basis within 90 days before end of the financial year, the feature film performs poorly and it is exhibited only for a short duration. Consequently, the film producer may not recover costs. In such cases in view of the prevailing IT Rules, the film producers are unable to claim a deduction of entire production cost and, the loss is to be carried forward to the next financial year. Accordingly, such film producers are unable to claim losses in the year the feature film is released for exhibition despite no further scope of income. A similar situation exists in the case of expenditure of distribution rights in view of Rule 9B of IT Rules.

Exemption of Service Tax on major inputs/input services

FICCI recommended that major inputs / input services that are used in relation to theatrical rights in movies, be exempted from service tax. Since the major inputs/input services used in relation to revenue earned from theatrical rights are taxable, the CENVAT credit of service tax paid on such inputs/input services is blocked in the supply chain due to applicability of CCR. Eventually such taxes result in increase of the cost of production thereby defeating the purpose of providing an exemption on the output service.

Re-instatement of the Service Tax exemption on Transmission of digital cinema

FICCI also recommended reinstating the exemption to digital cinema service distributors, as it existed earlier under notification 12/2007 ST of 1 March, 2007, which had been rescinded with the introduction of the negative list.

Service tax on transmission of digital cinema is a direct cost to the producers since the same is in relation to theatrical exhibition of cinematograph film (which is an exempt service with effect from 1 April, 2013) and hence no credit can be availed of such service tax.

Clarity on export status of post-production services

FICCI asked for clarity on the inclusion of post-production activities in the exclusion to this Rule. Alternatively, the second proviso to the Rule 4(a) of the POPS Rules be re-worded.

Given the various technological advances in the Indian film industry, many Indian entities are hired by foreign producers for carrying post production activity. For such activities, the content is temporarily imported into India (either physically or electronically) and re-exported after completion of service. Post-production activities, which may be performed in India, do not find explicit mention in the proviso that carves out exceptions to the performance based rule in POPS Rules.

Service Tax exemption to on-screen advertising in cinemas

The industry body said on-screen advertising in cinemas and multiplexes should be exempted from levy of service tax.

After 1 October, 2014, the negative list of services was amended and on-screen advertising within cinemas is liable to service tax.

The on-screen advertising within cinemas caters to advertisers with small businesses, with limited resources. For large advertisers, on-screen advertising is a secondary medium of advertising at best and they have a small contribution to onscreen advertising within cinemas. The on-screen advertising forms an important source of revenue for the exhibitors, which are already reeling under the pressure of multiple taxes. Re-instatement of service tax on such revenue will only increase their tax burden.

Applicability of Service Tax on food and beverages sold within Cinemas

The food and beverages (F&B) sold in theatres during movies are subject to VAT under local state laws and the same is paid by the exhibitors. But with effect from 1 April, 2011, restaurant services became taxable whereby services rendered by any air-conditioned restaurant serving alcohol were made liable to service tax and later with effect from 2013 the condition of serving alcohol was withdrawn. However, it is still not clear whether the sale of F&B by cinema halls and multiplexes is covered in this service.

Unlike restaurants, there is no seating arrangement, no cutlery is provided and no waiter serves F&B and hence there is no element of service involved in any meaningful manner.

FICCI said levy of service tax is intended on “restaurants” rendering certain services and is not intended on sale of food, beverage and snacks from candy counters in cinema theatres.

Service Tax exemption on entry to award functions, musical performance etc.

The Union Budget of 2015 had amended the negative list of services and effectively withdrawn the unconditional service tax exemption, which was granted to tickets for award functions, music events, sports events etc. With effect from June 2015, service tax is payable when the consideration for admission to entertainment events such as award function, concert, pageant, sporting event etc. is more than Rs 500 per person.

However, FICCI said payment for admission to any event is already liable to a high state entertainment tax and levying of a service tax of 14 per cent over and above the high rates of entertainment imposes a high burden on the entertainment sector.

The industry body asked for a clarification to specify that the value of ticket for the purpose of levy of service tax on such admission (where the ticket price is more than Rs 500) should be the value excluding Entertainment tax. It also wanted clarification on if service tax is payable, the same should be computed on a value exclusive of Entertainment tax and accordingly no service tax should apply on entertainment tax amount.

Customs Duty exemption on film equipment under the ATA Carnet

The ATA Carnet permits duty free temporary admission of goods into a member country. The list of exempted products covers filming equipment too. However, there is no Customs Notification in order to exempt the import of filming equipment from the levy of Customs Duty, on the lines of the ATA Carnet.

FICCI recommended that Customs Duty should be exempted on film equipment under ATA Carnet. The film production equipment is very expensive and not easily available in all countries because of which the film producers are compelled to temporarily import the same on lease for the purpose of producing the film. In absence of a customs notification to exempt filming equipment, the ATA Carnet duty exemption benefit cannot be extended to import of filming equipment.

These imports significantly increase the burden of tax on the film producers.

Proposals for Animation, Gaming and VFX Industries

FICCI also made some recommendations for the Animation, Gaming & Visual Effects (VFX) industries.

It asked for a 10-year tax holiday for the Animation, Gaming, and VFX industries; and removal of withholding tax on revenues accruing from sales of mobile games in non-India markets as well as removal of withholding tax on the development contracts given to mobile game developers outside India.

FICCI also asked for removal of withholding tax paid by expats working in India for Indian mobile game development companies.

The Minimum Alternate Tax (MAT) applicability for units undertaking animation work in SEZ should be withdrawn to encourage export of animated contents.

The industry body wanted restoration of STPI advantage scheme for AVGC or ITES for another 10 to 20 years and cover/encourage exports as well as IP creation.

To promote domestic gaming market, excise duty on local manufacture should be brought down to nil (similar to film and music industry). This will enable CVD to be brought to zero also. The effective reduction in taxes would be around 15 per cent. Import duty on consoles (gaming hardware) to be brought down to zero per cent to increase the installed base to enable the local developer ecosystem to flourish.

There should be a provision of 50 per cent reimbursable MDA (Market Development Assistance) for travel and registration fees to international market events.

The Government should extend support under Market Development Assistance (MDA) activity for Indian companies to exhibit by setting Indian Pavilions in the world markets. What is needed is to help bringing local production companies to international markets, collect and disseminate information and support creating the infrastructure needed for a healthy media market to develop.

January 27, 2016
Indian School of Media unites with The Indian Telly Awards 2015

MUMBAI: It’s that time of the year when the entire Indian television industry comes together to celebrate success, recognize talent, rejoice and cheer! It’s time for the most celebrated awards from Indiantelevision.com – The Indian Telly Awards.

Indiantelevision.com’s the Fourteenth Indian Telly Awards which is scheduled to happen on the 28 be a star studded event and the extraordinary set and brilliant event execution will take the celebrations of the year end a few notches higher.

Organizing the mega event has been a herculean task and has involved efforts of several well trained youngsters. Talking about the contribution made by students of Indian School of Media (ISM), owner, founder and director of Indian School of Media Natasha Aranha said, “This is our way of giving our students unparalleled, handson exposure to Event Management. ISM students have demonstrated their drive and ability in the last four years by working on several events of this size. Indiantelevision.com has shown faith in how well we train them, by giving them several responsibilities; from managing production and operations, backstage and front stage, red carpet and security to costumes and celebrity management, and we are delighted for the opportunity to support their initiatives.”

November 28, 2015
Q3-2015: Higher depreciation, finance cost pares SAB profit; EBIDTA up

BENGALURU: Sri Adhikari Brothers Television Network Limited (SAB TV) reported less than one fifth (down 1/5.7 times) PAT in Q3-2015 at Rs 0.54 crore (2.4 per cent of Total income from Operations or TIO) as compared to the Rs 3.1 crore (16.2 per cent of TIO) in the corresponding year ago quarter, and one fifth of the PAT of Rs 2.73 crore in Q2-2015.

The company’s depreciation expense in Q3-2015 was 58.9 per cent higher y-o-y at Rs 3.70 crore versus Rs 2.33 crore and 66.8 per cent more than the Rs 22.21 crore in the immediate trailing quarter.

SAB TV’s interest/finance costs have more than trebled (up 3.28 times) in Q3-2015 at Rs 2.42 crore (10.5 per cent of TIO) versus the Rs 0.8 crore (4.8 per cent of TIO) in the corresponding year ago quarter and more than double (up 2.29 times) the Rs 1.06 crore in the immediate trailing quarter.

Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

SAB’s simple EBIDTA without other income calculated using the data furnished by the company to the bourses in Q3-2015 at Rs 6.65 crore (28.8 per cent of TIO) was 9.2 per cent higher y-o-y versus the Rs 6.09 crore (31.8 per cent of TIO) in Q3-2014 and 10.9 per cent more than the Rs 6 crore (27.2 per cent of TIO) in Q2-2015

Let us look at the other numbers reported by SAB TV for Q1-2015

SAB reported 20 per cent higher TIO at Rs 23.10 crore in Q4-2015 as compared to the Rs 19;13 crore in Q3-2014 and 5 perceent more than the Rs 22.01 crore in Q2-2015.

SAB’s total expenditure was up 31.1 per cent at Rs 20.16 crore (87.2 per cent of TIO) in Q3-2015 as compared to the Rs 15.37 crore (80.4 per cent of TIO) in Q3-2014 and was 10.5 per cent more than the Rs 18.24 crore (82.9 per cent of TIO) in Q2-2015.

The company’s production/direct expense (prodn exp) is a major part of the expenditure. In Q3-2015, SAB TV’s production expense at Rs 14.34 crore (62.1 per cent of TIO), which was 3.7 per cent more than the Rs 11.60 crore (60.6 per cent of TIO) in Q3-2014 and was 1.9 per cent more than the Rs 14.07 crore (63.9 per cent of TIO) in the immediate trailing quarter.

Click here to read the unaudited results

February 12, 2015