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Rediff.com  » Business » Pvt channels to get 75% cut on sharing

Pvt channels to get 75% cut on sharing

By Bipin Chandran in New Delhi
October 20, 2005 11:41 IST
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Here is a carrot for private broadcasters. While sharing content with Prasar Bharati for "events of national importance", they will get 75 per cent of the revenue that the public broadcaster will generate by marketing the events on its platform.

That will be some consolation. Because for one, they will have no option but to share content. And, secondly, Prasar Bharati will get its own advertising.

Cricket seems to have emerged as the most important of events. In the case of a cricket broadcast, private players will have to share live feed with Prasar Bharati, even if the rights have been acquired before the notification of the new policy.

Thus, Sony, which has the broadcasting rights for the next Cricket World Cup, will have to share live feed with Prasar Bharati.

Besides, the group of ministers on broadcasting policies has recommended powers to the government to waive the ban on India-specific content and advertisements by foreign news channels on a case-to-case basis. Similar powers will be given to the government in the case of Indian editions of international news publications printed in India.

This will mean that the government will allow foreign news channels or Indian editions of foreign news publications to air India-specific advertisements and news programmes with prior approval.

According to information and broadcasting ministry sources, the Cabinet is expected to take up the GoM recommendations for its consideration tomorrow. This was not exactly what the information and broadcasting ministry wanted, which had pressed for a complete ban on India-specific advertisements and news on foreign news channels airing to India.

As per the original proposal of the information and broadcasting ministry, if an international news channel wanted to air its beam to India, it should be standard international feed. In the case of Indian editions of foreign newspapers, the information and broadcasting ministry wanted it to be a standard international edition.

According to ministry officials, while sharing the feed for important events, the revenue will be shared 75:25 in favour of a rights holder without any guarantee or carriage fee.

These provisions are almost certain to be a part of the uplinking and downlinking policies. Headed by Defence Minister Pranab Mukherjee, a group of minister set up to look into the policies is expected to make its recommendations shortly.

The marketing of events rights -- terrestrial, satellite and direct-to-home -- will be decided through negotiations. The highest bidder will get the marketing rights.

The new arrangement removes sports broadcasters' fears of revenue loss and legal wrangles. This is because, while sharing feed, a private broadcaster can look at getting additional revenue from Prasar Bharati.

The government is likely to legislate that television channels unwilling to share broadcast feed with Prasar Bharati will not be allowed to beam their coverage of events to the country.

This means that a sports broadcaster with broadcast rights for the Cricket World Cup, will not be allowed to operate in India the channel which covers the event, if it refuses to share the feed with Prasar Bharati.

Sources said to prevent contractual obligations coming in the way of sharing content with Prasar Bharati, private broadcasters would not be allowed to have exclusive contracts with broadcast rights marketing companies.

Content-sharing will be determined by the information and broadcasting ministry in consultation with the ministry of sports and youth affairs, Prasar Bharati, sports channels and sports broadcasting rights marketing companies.

The content-sharing idea has not gone down well with the broadcasting industry, which thinks that a move like this will bring down the overall value of the sports broadcasting business.

Bowled out

  • Private players will have to share live feed with Prasar Bharati, even if the rights have been acquired before notification of the new policy
  • Television channels unwilling to share broadcast feed with Prasar Bharati will not be allowed to beam their coverage of events to the country
  • Marketing of events rights, terrestrial, satellite and direct-to-home to be decided through negotiations, with the highest bidder getting the rights
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Bipin Chandran in New Delhi
Source: source
 

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