WORLDTEL, BBC WORLDWIDE INDIA PROPOSALS CLEARED
The government has cleared the proposal by World Tel to invest Rs 2,817.5 million in India.
How things change! It was hardly a year-and-a-half ago that direct to home television was a bad word with everyone concerned. Every politician screamed that it would pose a threat to national security when Star TV threatened to flag off its ISkyB project. The major opposition to ISkyB came from wannabe DTH players such as Subhash Chandra and Lalit Modi as they did not want Murdoch to be the first in this game in the Indian market.
But that was when the United Front government was in power. All political parties, including the BJP, agreed that DTH should not be allowed. Now the shoe is on the other foot and it is the BJP which is ruling the nation with support from allies who themselves supported the ban on DTH. The information & broadcasting minister is a Pramod Mahajan, who is also the fund raiser for the BJP. And suddenly, DTH television seems OK. And the government seems set to give a decision either way on this niche but lucrative business in the next few weeks. Mahajan‘s predecessor Sushma Swaraj seemed in no hurry to give the go-ahead to DTH. And his minister of state M.A. Naqvi was quite emphatic that DTH would not be allowed independent of the Broadcasting Bill.
What goes with the BJP-led government? Has it forgotten the threat to national security or was there never a threat? And what goes with its allies, and the Janata Dal and the Congress? Have they been hit by a bout of amnesia about what they so strongly opposed hardly a couple of years ago? Or is it that the anti-Murdoch lobby in government and amongst politicians is no longer anti him because Chandra has made peace with the global media baron? And what about the auctioning of the direct-to-home service licences under the broadcast bill? Has all that been erased from everyone‘s memory? Will that be resorted to or will there be ad hocism in the DTH television business?
Of course, people will argue that things have changed in a couple of years and people can channels that they want to watch over the Internet. So it will be useless to rein in DTH. Rather, let it roll out and make money from what has to hit Indian consumers anyway. Let those foreigners who want to enter the market with their projects do so in partnership with state-owned broadcaster DD having control over most aspects of the business.
But we all know what happened when DD tied up with Measat two years ago: it did nothing. DD and information and broadcasting ministry officials simply sat on the proposal they had received for an assoication with the Malayasian DTH service. This writer is not opposed to technology nor is he sold on the threat to national security hoodoo that politicians raised but is opposed to opportunism on the part of governments. They ban what they deem fit or is politically right; they allow what they think they should. There appears to be little reasoning and strategy behind the decisions they take.
Currently, there is no framework in place; no Broadcast Authority of India. There are no codes for advertising and editorial content on television. What is good for DD needn‘t be good for DTH television which is a niche service targeted at well-heeled people. Unless the government has a coherent strategy- apart from raising money -- behind allowing DTH services, it should not. The money will disappear quickly. And we may well end up with a repeat of what happened with telecom licensing. Respected Mr Vajpayee, Mr Narayan, and Mr Mahajan please do your homework before taking decisions you may well regret in future.
indiantelevision.com scans the most important English newspapers in India and picks up news reports relating to the Indian and international television business. The newspapers that are scanned on a regular basis include The Times of India, Indian Express, The Economic Times, The Hindu BusinessLine, Business Standard, Financial Express, The Observer of Business and Politics , The Asian Age, Mid-Day, The Afternoon Despatch & Courier
WHO‘S DOING WHAT?
Two US funds, Morgan Stanley and Capital International, have bought Zee Telefilms shares yesterday.
The Economic Times.
STERLING GROUP HANDS OVER TMB STAKE TO NADAR FORUM
DTH wannabe C.Sivasankaran‘s Sterling group has got an advance of Rs 200 million against the agreed Rs 1,570 million for the sale of its 67% equity stake in the Tamilnadu Mercantile Bank (TMB) to the Nadar community.
The Economic Times.
SPENDING ON CAR ADVERTS HITS PEAK
Automobile manufacturers spent a record pound sterling 3.31 billion on advertising in Europe‘s five largest markets last year.
Business Standard.
THE NEW SATELLITE VISION
Ammirati Puris Lintas has introduced a media guide which gives the lowdown on the Indian satellite television market.
Business Standard
TAM OPEN TO UNITING WITH INTAM
TAM Media, the industry backed television rating system, says it could merge with rival Intam, but it would also like the industry to consider subscribing to its ratings first.
The Financial Express
STAR TV HELPS RETRENCHED EMPLOYEES COPE WITH STRESS
Star TV India organised a pep up seminar last week for employees that had been laid off from its direct to home television division earlier.
The Financial Express.
CTV MAKERS MOVING TO THE BIG VISION
Indian television manufacturers are working on dropping prices of 29-inch sets by as much as 30% and pricing them closer to 21-inch sets.
The Hindu Business Line.
KINETIC MEGA SHOW ON STAR PLUS
A new chat show The Kinetic Mega Show featuring celebrities and produced by production house TV18 is to start airing on Star Plus from 8 July.
The Hindu Business Line.
ONLINE BROKERS SEE HIGHER ADSPENDS AHEAD
Online brokers Ameritrade Holding Corp and E*Trade Group have announced that they will spend more on promoting their web services in 2000. Ameritrade is expected to spend between $100 million and $200 million on television, print, outdoor and online advertising campaigns.
The Hindu Business Line.
UK TO WIDEN BROADBAND COMPETITION
Established players of the likes of BSkyB and British Telecom and cable television operators, are in for a bout of competition in the UK with the government deciding to open up unutilised wireless frequencies for broadband transmissions.
The Hindu Business Line.
MURDOCH NAMES PROBABLE SUCCESSOR
Global media baron Rupert Murdoch told Newsweek magazine that Fox group chief Peter Chernin is likely to succeed him as head of News Corp.
The Hindu Business Line.
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