Corporatization of Indian media

Keeping in view the pluralist society of India with prominent linguistic, religious, regional, social and cultural diversities, one can imagine the diverse patterns of media ownership and structure. Since the economic liberalization of the early 90’s, Indian electronic media scene has changed from a state-monopolized single channel to market-oriented multichannel web. In last 20 years it has developed, as some would like to put it, by leaps and bounds but structurally changed from the state monopoly to a corporate monopoly. On the other hand, print media is also controlled by monopoly capitalists who have limited the community participation and public opinion in the electronic media. Ownership concentration is growing in all segments of media. Press Council’s last chairman warned about this perilous trend in mid 90s and demanded ‘democratization of press through mandated diffusion of ownership’ but in vain [1].

There are 9 major conglomerates holding the most of print and publishing business in India including; Times of India Group, The Hindustan Times group, Indian Express Group, The Hindu group, Anandabazar Patrika Group, the Malayala Manorama Group, Sahara Group, Bhaskar group, and the Jagran group. Electronic media segment is mainly occupied by Star India, New Delhi Television, Sony, Essel group, India Today, Sun Network and Television Eighteen. Recently, the Walt Disney group has emerged as an unchallenged king of the kids’ entertainment segment. Most of the Indian newspapers conglomerates are owned by families or individuals and in recent times many industrial groups and families have launched their own respective TV channels. Since there are no particular rules and laws to limit the cross-media ownership, almost all major newspaper groups have entered the electronic media market. Tremendous growth of media business has forced these groups to float shares in public market or accept FDI (Foreign Direct Investment), in order to survive in the market. Consequently, privately owned media structure is reshaping itself in corporatized structure.

There are mainly two debatable issues in media ownership structure; first is cross-media ownership and second, Foreign Direct Investment (FDI). In recent years cross-media ownership has been a quite debatable issue among media and social circles. On one hand, media conglomerates are lobbying to liberalize the cross-media ownerships further; on the other hand, consumer organizations and civil society are favoring and agitating to put certain restrictions on cross media ownership. Media business is broadly divided in three categories; Carrier (Radio, TV, Newspaper, internet etc), Content (software, technology etc.) and Distribution (DTH, cable network etc.). Most of the developed media markets in world are facing one or other kind of cross media ownership laws which assure that one business entity could not hold all aspects of media. The corporate sector wants to enable players to leverage cross media synergies in order to attract a whole set of new consumers with attractive content and carrier combination [2]. Influential entry of multinational media conglomerates and sharp aggressive growth of local players has accelerated the phenomena of inter-corporate investments and interlocking of directorship among media companies already [3]. Ostensible efforts to establish integrated media houses with several distribution channels to provide myriad content are already being implemented. Meanwhile, many local media companies are privately owned which hinders accessibility to any legal information in order to map the whole monopolistic structure of present industry.

At least in six states of India, one media group is enjoying unprecedented monopoly while on national level, groups like The Times of India group (Bennett, Coleman and Co. Ltd) and Sun TV own various ‘carriers’ and enhancing their power through vertical integration by investing in all three major categories of media business. Absence of any particular laws and regulations about media ownership has made Indian industry vulnerable to media corporations. Telecom Regulatory Authority of India (TRAI) started a process of collecting consultation papers in order to shape laws for media ownership in 2008 but these laws are rotting in bureaucratic pipelines [4].

The second controversial issue is Foreign Direct Investment (FDI) since almost 40 to 60 percent investment in Indian media and entertainment industry is made by foreign investors. With some soft conditions, 100 percent foreign investment is allowed in film industry. This investment can comprise whole value chain of film industry including financing, production, distribution, marketing and exhibition. Up to 100 percent FDI is possible in advertising business through automatic route while 74 percent FDI is allowed in publishing scientific, technical magazines or journals for niche market. As far as the newspaper business is concerned, up to 26 percent FDI is permissible under certain conditions. For broadcasting segment, with permission from Foreign Investment Promotion Board (FIPB) 20 percent FDI is permitted in radio industry while 49 percent in cable network, uplinking, Hardware facilities and Direct-to-Home service with paid up share capital included. Overseas capital can pave their ways in TV software industry with maximum assets and up to 74 percent in establishing and running satellite TV [5]. Most of these laws and regulations contain loopholes which are being exploited by both bureaucracy and corporate sector time by time. Moreover, there is no single and coherent mechanism available to monitor these investments because many different official entities have their say in the process. During financial year 2008-09, 189 foreign magazines got permission to publish in India for niche market and 106 Indian magazines with FDI. Fifteen proposals were accepted for FDI in the news and current affairs media section [6].

(To be concluded)

Notes:

[1]: Joseph A. Status of Media in India. In: Johnston DH. Encyclopedia of international media and communication. New York: Academic Press; 2003. p. 371 (vol. 2)

[2] In the interval, but ready for the next act, FICCI-KPMG Media & Entertainment Industry Report. 2009 Available from: URL: http://www.kpmg.com/IN/en/ThoughtLedership/In%20the%20interval-%20But%20ready%20for%20the%20next%20act.pdf

[3] Vasanti PN. Need for a debate on cross-media ownership rules [online]. 2008 December 12; Available from: URL: http://www.livemint.com/2008/12/12000051/Need-for-a-debate-on-crossmed.html

[4] For detailed discussion on the issue: http://www.trai.gov.in/ConsultationPapers_content.asp AND http://www.trai.gov.in/ConsultationPapers_list_year.asp?offset=20

[5] FICCI-BISNET. Media and entertainment [online]. Available from : URL: http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm

[6] FICCI-BISNET. Media and entertainment [online]. Available from : URL: http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm

Riaz ul Hassan has been actively involved in Social Media studies since 2006. He has held diverse editorial positions in different literary magazines including Ravi and Patras. Currently studying in Sweden and plans to pursue his PhD in the field of Social Media. Riaz graduated from Government College Lahore and has worked at the same institute for about one year as lecturer. He has keen interest and involvement in arts, theater and Social Media studies.