News coming in from FICCI Frames, being held in Mumbai:
Policy Issues
Business Standard has an overview here, and quotes Amit Mitra, Secretary General of FICCI as saying that piracy remains a major concern for the entertainment sector. FICCI has submitted a draft report recommending a new optical disc law with strict penal provisions to the I&B Minister Priyaranjan Dasmunsi, and a policy is expected by the end of 2007. The Government will incorporate a content code into the Broadcasting Regulation bull, but it is still now clear how the digital media will be treated, reports the Hindu. “The Ministry will be taking it up in consultation with the Ministry of Human Resource Development, the nodal agency for copyright matter” says Dasmunshi.
The Telegraph adds that the Pricewaterhouse Coopers (PwC) and FICCI report recommends a uniform entertainment tax across all states, for Media and Entertainment to be transferred from the state list to concurrent list through a constitutional amendment, and that conversion to digital media be made mandatory.
Investment
In Media and Entertainment sector, the government cleared 13 proposals for foreign direct investment (FDI) in 2006, and 22 proposals are currently being examined, reports Business Standard. The sector has received over Rs 400 crore as FDI, and private equity players are now getting involved.
The Financial Express quotes Timmy S Kandhari, Executive Director for PwC, who says that the three main trends observed last year are diversification by media companies, investment in content and increased foreign investment.
Indiantelevision.com quotes Blackstone Advisors India MD Akhil Gupta as saying that valuation is a tricky issue in this space, and they have decided against a few deals because they felt promoters couldn’t take their companies to the next level of growth.
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