Welcome to the September 2012 edition of
The Newsreel, Ernst & Young's newsletter on the media and entertainment (M&E) industry.
This month, the Government initiated one of the most important reforms relevant for the M&E industry. It liberalized the broadcast sector ahead of India's shift to the digital carriage of TV channels, raising the foreign direct investment (FDI) ceiling to 74% from 49% for direct-to-home (DTH) service providers and multi-system operators (MSO). This is expected to drastically improve the capital-raising climate at a time when distribution companies require significant capital to fund their digital growth. Liberalization of the FDI ceiling is also expected to increase FDI in the M&E sector in coming years. The sector received FDI of INR32.64 billion during FY12.
This has not been so good for the sports segment due to the financial crisis at the Deccan Chronicle, the BCCI has terminated the Deccan Chargers’ franchise and is planning to put in place a new team to replace it. The financial crisis has also hampered the sports car racing league, the i1 Super Series, since Anjana Reddy, a key investor in Machdar MotorSports, has backed out, leaving the other investors to search for new financers.
This month’s “In-focus” section discusses the key trends in, challenges facing and the way forward for India’s social media sector.
In the “Point of view section,” Manoj Varghese, Director User Operations, Facebook India, shares his views on the social media segment in India.
I hope you enjoy reading this edition of The Newsreel. We look forward to your valuable feedback and your suggestions to make the newsletter more interesting and useful for you.
With kind regards,
Farokh T. Balsara
Media & Entertainment Industry Leader
Europe, Middle East, India and Africa