May 2013 Newsletter from the CII Media & Entertainment Division

CII CEOs Roundtable on Broadcast For a Separate Broadcast Regulator Minister of Information and Broadcasting Shri Manish Tewari asked the broadcast industry to “think aloud” to have a separate broadcast regulator Chandrajit Banerjee Director General, CII POLICY NOTES Innovation in M&E will be the focus at The Big Picture Summit Our recently concluded CEOs Round- table on Broadcast brought the media industry leaders, Government and Civil Society to deliberate on the issues impacting the broadcast sector. A “techno-commercial” Regulator for the Broadcast sector was flagged by Shri Manish Tewari, Union Minister ddressing more than 70 top broad- solution will be brought about to TRAI’s for Information & Broadcasting. CII cast industry leaders, the minister recent regulation which bars television will work with the broadcast sector and A once again mooted the idea of “techno- channels from telecasting more than 12 other stakeholders to bring in a consen- commercial” regulator for the broadcast minutes of advertisements every hour. sus on this issue. sector which is growing exponentially He said the broadcast landscape is chang- We are thankful to the Ministry of Information and Broadcasting for their and witness rapid changes in the wake of ing in the country with digitization and this “free and frank” participation in these cable TV digitization. He also made it clear issue of fixing time slots for advertisements roundtables as they give an opportunity that content will not be regulated by the will be taken up at an appropriate time. for M&E leaders to get a clear policy Government. Interacting with stakeholders of cable TV perspective from the Ministry. We will Shri Manish Tewari further re-emphasised digitization in the subsequent session of continue this Roundtable initiative to commitment from the Government to the CII Roundtable, Uday Kumar Varma, all verticals of the M&E sector. execute cable TV digitization and protect Secretary Ministry of I&B said the entire India -- The Big Picture Summit, CII’s interests of the consumers as they are the exercise of digitization was to bring out a annual flagship convention on the M&E largest stakeholder in digitization exercise. transparent mechanism, credible subscrib- sector, is slated for September 13-14, Taj 38 cities in 15 States of India are experi- er data and finally ensure that dividends Palace, New Delhi. While the Summit’s objective will continue to take the Indian encing cable TV Digital broadcast from of digitization reach the end consumers. M&E sector to $100 billion, the focus this April 1, 2013. “We have discarded a system which was not year will be on embracing innovation in In a major relief to broadcast channels, transparent and moving towards a system the Media & Entertainment Sector. Shri Manish Tewari maintained that a which has to be transparent.” This year, we will showcase game changer in innovation in the M&E CII all set for exhibitors at the CII anniversary. Actor Vidya sector and the brightest minds to share Cannes Film Market booth include – Gujarat, Balan will sit on the main their vision. India is top in the radar of Maharashtra and West Jury alongside Ang Lee, Cannes Film Festival as Guest Country For the 10th consecutive Bengal Tourism – they Nicole Kidman and the as we celebrate 100 years of Cinema. year, CII will be at Cannes will promote film shooting likes. Steven Spielberg is CII has been participating at Cannes managing the CII B2B locations in their states. the president of the Jury. Film Market for over a decade and this market place and its Disney UTV is also part of Nandita Das will be on the year there has been enormous interest booth at Palais. CII has the CII exhibitors. Cinefondation Jury. Indian among Indian state governments to been coordinating the This year is special to India films Bombay Talkies (Gala position their film shooting locations to India participation at the as Cannes Film Festival celeberation), Monsoon Cannes Film Market for the global filmmaking community. 2013 will feature India as Shootout (Midnight over a decade, positioning the Guest Country. The Screening), Ugly (Directors Send your views to our M&E division the Indian Entertainment Cannes focus will coincide Fortnight), Dabba head [email protected] industry on the global with Indian cinema’s (International Critics landscape. This years’s celebration of its 100th Week).

Newsletter from the CII Media & Entertainment Division 1 CII CEOs Roundtable on Broadcast Straight from the I&B Minister Shri Manish Tewari, Minister for Information & Broadcasting, re-emphasises its commitment for smooth Cable TV digitization and protecting consumer interests at the CII CEOs Roundtable on Broadcast (April 18, 2013 New Delhi)

On TRAI’s Advertising Regulation

I do understand your concern with regard to the advertising regulation. And let me tell you very clearly that we do not do indirectly what we do not want to do directly. So if there is anybody under the mistaken impression that we play good cop bad cop with TRAI, let TRAI step on your tail and then offer lip sympathy. Let me disabuse you of this notion. If we wanted to enforce this regulation because it is a part of the licensing conditions which you have undertaken voluntarily, we could have done it directly. This has not been our intent ever. We understood that till the time the digitization process is unfolded, the landscape settles down, revenue start kicking in, alternative revenue stream develops -- may be there is a strong and prudent case.

Setting up BARC

The broadcasting industry need to initiate immediate steps for setting up the Broadcast Audience Research Council (BARC) mechanism. The digitization process had created a model where the given database emerging from the process could be Shri Manish Tewari Minister of Information & Broadcasting analyzed and expanded exponentially. The Government is willing to provide this data to an industry created body. This body in turn could utilize the data for use in No Content Regulation the public space. The initiation of this industry led process would ensure a two way flow of information necessary for analyzing advertising trends and models. Our intent is not to regu- late content. Regulation Need for a Broadcast Regulator Consumers and Digitization The broadcasting universe has grown exponential- The Government is aware of in the media space on the ly. It has its own peculiar, unique characteristics It the needs of the consumer content side is not going to requires the kind of undivided attention and the and desired that the whole focus which a regulatory body needs to bring to process of digitization imple- come out of the political it. Without casting aspersions on the work of the mentation ought to be done executive. As and when it TRAI, which has done excellent job-- may be the causing the least pain to the time has come for the industry to reflect on the biggest beneficiary i.e., the comes it is going to come fact whether on the techno-commercial side there consumer. out of the judicial process. is a need for a separate broadcasting regulator.

We are completely delighted Give digitization time to settle We need to create a The fact that we have been with the phase II digitization. down. This is the technology complete ecosystem asked to cut down on ad The laws can be created phase of digitization and to spread the domestic durations in a sudden manner at the Centre. But in the business phase will follow. manufacturing and (the recent TRAI notification) democracy we live in At that time we can have standards. Though the cable -- at a time when advertising anybody has the right to go a dialogue between the industry has an industry remains absolute and there is the court, raise issues and industry and regulator status, it is only the head- no alternative medium --there stop the process. Hats off to facilitated with the I&B end which is considered an has to be understanding of the Ministry of Information & Ministry to actually address infrastructure. MSOs need to the realities that broadcasters Broadcasting for managing any issue on the kind of ads be get telecom status. face and we need to arrive digitization process beautifully or the number of ads put out on a common ground on this on air issue K V L Narayan Rao Harit Nagpal Preet DHUPER Asif Khan President, The News Broadcasters MD & CEO, Tata Sky COO, BBC World (India) Pvt Ltd Director, Indieon Technologies Association

2 Newsletter from the CII Media & Entertainment Division CII CEOs Roundtable on Broadcast Digitization Good for Everyone The reforms in the broadcasting sector would be absolutely incomplete till we are able to put in place, a really credible, transparent, TV programme rating system, says Shri Uday Kumar Varma, Secretary, Ministry of Information & Broadcasting at the CII CEOs Roundtable on Broadcast

The second phase of digitization could happen because every stakeholder in the Our broad objective cable and broadcast sector worked towards is to bring about a this. One of the reason why we could carry out phase II digitization very smoothly was complete transparency because there was a great deal of support to the broadcasting across the country from consumers. That actually should convince us that this is good sector. And, let the for every stakeholder, said Uday Kumar dividend of this reach Varma, Secretary, Ministry of Information & Broadcasting. the consumer. Both Speaking at the CEOs Roundtable on these things are non Broadcast, he said that a technical model is in place for cable TV digitization, but an ap- negotiable propriate business model has to be in place. And this can be achieved with support from Shri Uday Kumar Varma the industry. This needs to be reflected by Secretary, Ministry of Information & Broadcasting the industry. there will be enough justification for evolv- facturing and deployment of set-top box and “In the last twenty years, there was lack of ing any formula. All regulations which are may also consider fixing certain percentage transparency at every level in the broadcast brought out by regulator, are essentially (30 or 40 per cent for domestic manufactur- sector. There was lack of transparency at presumptive in several cases -- because if you ers) for reaching out to the next 50 million the local operators, at the level of MSOs don’t have correct data -- then you make some consumers in the subsequent phases of and at the level of broadcasters. Everybody presumptions and then frame some regula- digitization, provided they match up with has to really undo this. Because, you cannot tions. Having correct subscriber data will cre- quality, price, and competitive standards as have the system transparent, if only part ate occasions when TRAI can revisit certain acceptable to MSOs,” he said. of the system becomes transparent. It is regulations -- and whichever stakeholder is The reforms in the broadcasting sector would certainly possible to do it.” unhappy about revenue sharing -- can legiti- be absolutely incomplete till we are able to Varma said: First of all, we need to be very mately agitate this issue. Please do remember put in place, a really credible, transparent, clear on what is the actual subscriber base. that we have dismantled a system which is TV programme rating system. Nobody would That becomes the actual basis for every step not transparent and putting a system which agree that the present system is a perfect one. that you take. Correct, credible, subscriber is going to be a much better system. This is the second area of reform which we base has to be put in place. If that is there, “The Government favoured domestic manu- should very seriously take up.

Globally, we have shows which With the execution of We are finding it difficult Broadcasters, MSOs, DTH have 44 minutes of duration. digitization, it is important that as the main distributors players are licensed, cable If we have to move tomorrow the subscription prices of pay of broadcasters to sell operators are registered. (to implement TRAI Regulation channels be looked into. So packages of channels. Why are channel aggregators of 12 minutes) we will have far, the subscription prices, The consumer needs to who provide content to 44 minutes of programme, 2 have been for the analog understand the benefit DTH players, MSOs and minutes promo, 10 minutes regime. The prices have to be of a particular package independent MSOs not ad time and 4 minutes blank. logically touched upon in the of channels or genres of licensed? What is their We need some time to move current scenario. channels. A joint campaign to identity in the digitization to that level. We need time to some extent would improve process? what is their status? create short form content to be subscription climate in the able to fill up that one hour country.

Rahul Johri S N Sharma Ashok Mansukhani Roop Sharma Senior Vice President South Asia, CEO, DEN Network President, MSO Alliance President, Cable Operators Discovery Networks Asia-Pacific Federation of India

Newsletter from the CII Media & Entertainment Division 3 India – The Big Picture Summit Roadmap to $100 billion Indian M&E Industry New Delhi, 29-30 October 2012

Best minds, Best talent, Best content

EMBRACING INNOVATION IN MEDIA WILL BE OUR FOCUS AT INDIA – THE BIG PICTURE SUMMIT 2013

September 13-14, 2013 Hotel Taj Palace, New Delhi Email: [email protected]

4 Newsletter from the CII Media & Entertainment Division INDIA @ CANNES 2013 Indian Ingredients at Cannes For 12 days virtually the entire international film industry is jammed into a square mile of the French Riviera. Cannes is a rewarding experience for those whose career is significantly influenced by networking

Viacom 18’s Bombay Talk- CII’s booth at Cannes Film Market ies will have a gala screening – at Palais – is located in the heart at the Cannes Film Festi- of the market near the cafetaria. val on May 19. Directed Maharashtra, West Bengal and Gujarat by Anurag will be showcasing their respective Kashyap, Dibakar Ba- film shooting locations at the market. nerjee, Karan Johar and As part of the CII exhibitors, Disney Zoya Akhtar, the film is UTV will be at Cannes with their slate scheduled for a release in In- of movies for sales and distribution. dia on May 3.

Vidya Balan will be Nandita Das will be on the main Jury of on the Cinefondation Cannes Film Festival Jury that screens 2013. student films from all over the world.

• Amit Kumar’s debut feature Monsoon Shootout will have CII along with Pickle will bring a Midnight screening at the festival. The film features Vijay out ‘India: Film Location and Varma, Nawazuddin Siddiqi, Tannishtha Chatterjee, Neeraj Services Guide’ and distribut- Kabi and . ed at Cannes Film Festival and Market. It is a comprehensive • has become a regular at Cannes from handbook to film shooting India. He returns to Directors’ Fortnight with kidnap drama locations and services across Ugly after two-part gangster revenge saga Gangs of Was- India. The guide is a platform seypur in 2012. to promote and position film • Ritesh Batra’s debut feature film Dabba () is location in various Indian States and reach out global part of the International Critics Week selection film producers. To make your • Warner Bros’ The Great Gatsby is all set to open Cannes films, production or location Film Festival. The most awaited film is director Baz services visible at Cannes Luhrmann’s lavish 3-D rendition of F. Scott Fitzgerald’s fa- email: [email protected] mous novel. This film is also Bollywood megastar Amitabh Bachchan’s Hollywood debut.

Newsletter from the CII Media & Entertainment Division 5 The Future of Media People are getting used to seamless services: anything, anywhere, on any device. They expect that from old media too, says Neelie Kroes Vice-President of the European Commission responsible for the Digital Agenda at Future Media Lab’s annual conference by EMMA (European Magazine Media Association)

e are all familiar with trends in I don’t know the answers to all those ques- the media sector today. Particu- tions. But I do know policy makers and the Wlarly the impact of the Internet. Free industry need to engage for the futures The digital world is blurring boundaries ahead. between sectors like media, telecom and First, the sector can itself argue for the ICT. This disrupts business models; chal- “yourselves changes we need. Christian Van Thillo’s lenges the value chain; changes the role Forum on Media Futures gathered many of everyone from publisher to paperboy; disparate voices: they agreed on the digital blurs the line between pure information from legacy opportunities for the media sector. Most and journalism of all they offered a wake-up call to policy And it also changes how people consume. makers and the sector: to urgently reform, and put consumers at the centre. They com- People are getting used to seamless ser- thinking. Don’t mitted to explain and champion those ideas vices: anything, anywhere, on any device. to others: and I know they are still hard at They expect that from “old” media too. just think work. If they don’t find it, they vote with their Second, we must defend media freedom feet. and pluralism. The High level Group on You don’t need me to remind you of these about your that issue recently offered us their report: well-known trends. But I do want to share independent but important. two thoughts. This is a debate I want to hold in the open: First, let’s not just think about where we competitive with civil society, the media sector and are today: today’s position, today’s trends. others. And that is why we are consulting Let’s do the opposite. Let’s think about to- on all of their recommendations. When it morrow. By 2060, what will “media” mean? advantage, comes to safeguarding a free and pluralistic What do we want from “media”? What media sector, there are dangers from acting should the sector look like? How many too much, and from acting too little. How do futures are there? How will we get there? about winning we define and protect freedom and plural- What will the consumer experience look ism in the future, including in a digital world? So I am asking you all how to best like, who will deliver it, how will quality move forward. be maintained and rewarded? That’s the the regulatory philosophy of our Futurium project which Third, we must recognise how sectors are you are taking part in today. converging, and consider how to react. Take Connected TV: in its various forms, it could Second, how should we respond to change? tug-of-war. be a great platform for new content; with It’s a question I see many sectors confront- convenience, creativity, and choice. But it ing, from entertainment to healthcare. also means sectors once distinct converg- They all ask: do we change to meet new re- Don’t just ing: some historically subject to certain alities? Or defend against them and hope rules and protections; others not. they’ll go away? My view is clear: change is inevitable, adaptation an imperative. If recite mantra Our consultation won’t take sides; it raises we wait for the future to happen to us, we questions, without answering them. What- will become irrelevant. ever their perspective, I know many actors positions of the agree this is a debate we need to have in the So for all of those sectors, my advice is EU. the same. Don’t defend against digital And fourth, we have today’s debate. The disruption; to take advantage of online question is: how does disruption drives opportunity, you must adapt and innovate. past; but think media innovation? An important debate; The sectors that have done so are already and I have one plea. Free yourselves from getting their digital dividend; those that legacy thinking. Don’t just think about haven’t start to get squeezed. how the future your competitive advantage, about winning But how to adapt? Of course that is the regulatory tug-of-war. Don’t just recite the hardest question. Do we need more mantra positions of the past; but think how “middlemen” in the value chain, or fewer? should be the future should be. Do you simply react to demand or find a „ Legacy systems and structures that served business model the consumer didn’t know those aims well in the 20th century may she wanted? Do governments need to in- no longer do so in the 21st. Yes, we must tervene with detailed rules, or do industry protect values: but values aren’t the same as and the consumer know best? vested interests.

6 Newsletter from the CII Media & Entertainment Division Javed Akhtar Lyricist Chairman CII National Committee on Media and Entertainment

I feel that there is no melodrama today. I am talking about good films. Today the dialogues and conversations have become more real and characters are becoming more realistic... Things are not in water-tight compartment. Some things change while some remain as it is. Although a connection is there between them. Even today, we watch the good old films that appeals us.

Javed Akhtar on the fast changing Indian cinema

Newsletter from the CII Media & Entertainment Division 7 MEDIA BOOKS CII CEOs Roundtable on Broadcast The New Digital Age It is a splendid collaboration on what’s ahead for us in the digital age by Google’s Eric Schmidt and Jared Cohen’s new book ‘The New Digital Age: Reshaping the Future of People, Nations and Business’. In an unparalleled collaboration, two leading global thinkers in technology and foreign affairs give us their widely anticipated, transformational vision of the future: a world where everyone is connected— a world full of challenges and benefits that are ours to meet and to harness. They combine observation and insight to outline the promise and peril awaiting us in the coming decades. At once pragmatic and inspirational, this is a forward-thinking account of where our world is headed and what this means for people, states and businesses. Facebook’s New Logo

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8 Newsletter from the CII Media & Entertainment Division