Here are some recent regulatory news in the M&E sector
Prasar Bharati approves auction of DD Direct channels and private advertising on DD
Public broadcaster Prasar Bharati is gearing up to auction slots on its free-to-air DTH arm, DD Direct Plus, to private broadcasters. At a base price of INR10–15 million per channel, and with more than 250 channels in line to join DD Direct Plus in a phased manner, Prasar Bharati is expected to generate INR3.6–4 billion in the first year of the sale.
The broadcaster has already initiated the process of expanding the capacity of its DTH arm from 59 to 200 channels, of which 20–25 slots will be reserved for Doordarshan. Auctions of TV channel slots will replace the carriage-fee regime. The six existing private DTH operators in the country charge a carriage fee of INR15–25 million per channel, whereas Prasar Bharati charges INR8 million per channel for DD Direct Plus.
Prasar Bharati has also allowed cross-channel advertising by other broadcasters and DTH operators on Doordarshan channels.
Its board has approved the amended guidelines for the procurement of Hindi-language feature films for Doordarshan channels as well as amendments in the guidelines for commissioned programs1.
Government planning to amend laws to stop broadcast of illegal television channels
The MIB is considering amendments to laws due to the increased incidence of cable operators broadcasting illegal channels, some of which are even reportedly featuring content with anti-national sentiment. Concerned over the proliferation of such channels, the MIB plans to amend the Cable Television Networks (Regulation) Act, 1995.
The MIB is believed to be working in tandem with other ministries on this. The amendment could include provision for imprisonment and for the equipment of cable operators being seized. There could also be an increase in the entry fee for MSOs to weed out non-serious players from the business2.
Tamil Nadu to nationalize cable TV
The Government of Tamil Nadu has decided to nationalize private cable television in the state. It seeks to revive the nearly defunct state-run Arasu Cable Corporation (ACC), which was set up by DMK Chief Minister M Karunanidhi, and will now provide cable TV services. Nationalization is not expected to affect the last-mile operator, but is likely to adversely affect the Maran family-run Sumangali Cable Vision SCV, which currently has a near monopoly in the state’s cable business3.
1 "Prasar Bharati board gives nod to DTH expansion," Indiantelevision.com, 7 June 2011, via Dow Jones Factiva, © 2011 Indiatelevision.com.
2 "Stern signal on broadcast of 'sensitive\' channels," Indian Express, 30 May 2011, via Dow Jones Factiva, © 2011 Indian Express Pty. Ltd.
3 "TN govt to take control of cable TV ops," The Times of India, 4 June 2011, via Dow Jones Factiva, © 2011 Bennett, Coleman & Co., Ltd.
