Conflict Of Interests In Us Broadcast Lobby

American broadcasters have come together under the aegis of the American Business Council (ABC) to lobby more effectively with the Indian government. But can they reach a consensus on issues like uplinking and licensing of channels, especially when the likes of Star TV, ESPN, CNN and The Discovery Channel have clashing interests?

While CNN may not need a licence to operate from India, as per current provisions in the Broadcast Bill, STAR TV is likely to get entangled in cross-service restrictions.

Though The Discovery Channel too would not have needed a licence owing to the nature of its broadcasts, it being an encrypted channel, will now have to obtain a licence.

 

The bill says, The Authority... may grant permission for reception of an unlicenced foreign satellite broadcasting service in India if such a service is free to air broadcasting service; does not carry any advertisements or carries advertisements for durations fixed by the Authority, the service is devoted solely to sports or international news and current affairs and fulfills the programme standard with respect to permitted service.

The ABC sub-committee on broadcasting has as members GE International Operations Co Inc (owning CNBC and NBC), MGM Gold, Encore International Inc, MTV, ESPN India, Motion Picture Association of America, News TV India Ltd (it manages the affairs of STAR TV), Turner International India (owners of CNN), satellite operators Pan AmSat, The Discovery Channel, Sony Pictures (major equity holder in Sony Entertainment TV), United International Holdings, Innerasia Consulting Group, Space Systems/Loral and Motion Picture Association.

However, the ABC, which already has eight other sub-committees dealing with issues like telecom and pharmaceuticals, is yet to openly support the American broadcasters who are worried about the provisions in the Broadcasting Bill, now referred to a select committee of Parliament for suggestions.

An American embassy official admitted that unless and until the American broadcasters come up with a base paper on the Broadcasting Bill reflecting consensus, ABC really cannot be of much help.

Though the broadcasters insist on calling it an informal affair, the importance of the ABC sub-committee can be gauged from the fact that the US ambassador to India has already met information and broadcasting minister Jaipal Reddy. Some embassy officials have also highlighted the viewpoint of the American broadcasters in a meeting with the information and broadcasting secretary recently.

Interestingly, while the Indian Broadcasters Association (IBA) has been lobbying with the government for a foreign equity cap in broadcasting joint ventures, the foreign broadcasters are apprehensive of the fallout of such a provision in the capital-intensive broadcasting area when they will have to divest their stakes.

The sub-committee of the ABC is likely to come up with suggestions on the bill by June-end.

ABC, having 200-odd members, looks into the interest of American investors here and acts as a facilitator.

It also has about sectoral sub-committees like on power, telecom and pharamaceuticals.

The ABC broadcasting panel members have had selective meetings, but all the members are yet to meet together.