FDI tightening its grip over Indian media space
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djle...@gmail.com
Aug 8, 2008, 4:01:52 PM8/8/08
to Democratic Journalists League
Posted: Fri, Aug 8 2008. 12:25 AM IST
Corporate News
FDI tightening its grip over Indian media spaceAdvertising through
newspapers and television today is mostly by multinationals and big
corporate houses
Fine Print | P.N. Vasanti
livemint.com
Traditionally, journalists, especially editors, were the gatekeepers
in media. They used to have the final say in content. In today’s
market-driven media world, however, journalists no longer dictate
priorities and direction. It is advertisers, market researchers and
public relations people who dominate and determine the concerns and
the content of mass media. It is these forces that have become the
“new gatekeepers” of media — including the news media.
Given this context, the discussion on allowing foreign direct
investment (FDI) in news media here takes a new angle (see “Should
India let more foreign investment into news media?” in Mint, 1 July).
Both the pros and cons of increasing FDI in news media are now well
known. Those in favour have been using the high growth argument and
claim that restrictive policies are retrograde in the era of
convergence. Others have quoted laws of different countries that have
similar restrictions specially on news media and say these are
necessary to protect national interests, local cultures and diverse
character of the media. The missing angle in this ongoing discussion
on allowing FDI in news media is that the new gatekeepers of our media
are already owned and also managed by foreign organizations.
As summarized in the table, 100% FDI is already allowed in
advertising, market research, public relations, printing plants and
even non-news television channels and technical journals. Total
advertising spends in the country today are at least Rs12,000 crore
with around 75% of this, maybe more, going to newspapers, television,
films and radio. Advertising through newspapers and television today
is mostly by multinationals and big corporate houses. In fact, the top
15 advertisers account for three-fourths of advertising revenue of
newspapers and television channels. Today, over 13,000 brands in all
are being promoted through television, newspapers, radio and films.
The top five advertising agencies, mostly controlled by foreign
networks that sometimes own all the equity in these firms, account for
well over half of advertising business in the country. Entry of
foreign advertising agencies has been going on along with simultaneous
entry of foreign brands and increase in the share of foreign companies
in the total advertising in the country.
In India, where newspapers are heavily subsidized — for instance, some
papers are sold for Rs2 when just the ink and paper costs Rs8 per copy
— the ability of these advertisers to become more powerful gatekeepers
is higher than in most other countries that claim to have a free
press.
With media becoming complex and also specialized, two “new” mediating
functionaries have also emerged. Both these functionaries, “media
planning” and “corporate public relations”, in a way, erode into core
prerogatives of journalists and their “editorial control” as the
function of corporate PR is to ensure coverage of a particular
viewpoint. Market research agencies conduct “readership” surveys and
“rating” of television viewership and, thus, directly influence
advertising agencies as well as the news media as to their priorities.
Most surveys being done in the country are mostly at the instance of
advertisers or advertising agencies and the media operators
themselves. Today, the top seven or eight market research agencies,
accounting for at least 75% of research, are owned entirely or partly
by foreign firms. With recent mergers and acquisitions, a certain
monopolistic trend is already evident in this function with an annual
turnover of well over Rs1,200 crore.
Together, advertising, market research and media planning set the
scope for media. These functions are already in the hands of
multinational firms.
While we still debate allowing foreign investment into our news media,
“foreigners” have already entered our newsrooms through these new
gates.
Corporate News
FDI tightening its grip over Indian media spaceAdvertising through
newspapers and television today is mostly by multinationals and big
corporate houses
Fine Print | P.N. Vasanti
livemint.com
Traditionally, journalists, especially editors, were the gatekeepers
in media. They used to have the final say in content. In today’s
market-driven media world, however, journalists no longer dictate
priorities and direction. It is advertisers, market researchers and
public relations people who dominate and determine the concerns and
the content of mass media. It is these forces that have become the
“new gatekeepers” of media — including the news media.
Given this context, the discussion on allowing foreign direct
investment (FDI) in news media here takes a new angle (see “Should
India let more foreign investment into news media?” in Mint, 1 July).
Both the pros and cons of increasing FDI in news media are now well
known. Those in favour have been using the high growth argument and
claim that restrictive policies are retrograde in the era of
convergence. Others have quoted laws of different countries that have
similar restrictions specially on news media and say these are
necessary to protect national interests, local cultures and diverse
character of the media. The missing angle in this ongoing discussion
on allowing FDI in news media is that the new gatekeepers of our media
are already owned and also managed by foreign organizations.
As summarized in the table, 100% FDI is already allowed in
advertising, market research, public relations, printing plants and
even non-news television channels and technical journals. Total
advertising spends in the country today are at least Rs12,000 crore
with around 75% of this, maybe more, going to newspapers, television,
films and radio. Advertising through newspapers and television today
is mostly by multinationals and big corporate houses. In fact, the top
15 advertisers account for three-fourths of advertising revenue of
newspapers and television channels. Today, over 13,000 brands in all
are being promoted through television, newspapers, radio and films.
The top five advertising agencies, mostly controlled by foreign
networks that sometimes own all the equity in these firms, account for
well over half of advertising business in the country. Entry of
foreign advertising agencies has been going on along with simultaneous
entry of foreign brands and increase in the share of foreign companies
in the total advertising in the country.
In India, where newspapers are heavily subsidized — for instance, some
papers are sold for Rs2 when just the ink and paper costs Rs8 per copy
— the ability of these advertisers to become more powerful gatekeepers
is higher than in most other countries that claim to have a free
press.
With media becoming complex and also specialized, two “new” mediating
functionaries have also emerged. Both these functionaries, “media
planning” and “corporate public relations”, in a way, erode into core
prerogatives of journalists and their “editorial control” as the
function of corporate PR is to ensure coverage of a particular
viewpoint. Market research agencies conduct “readership” surveys and
“rating” of television viewership and, thus, directly influence
advertising agencies as well as the news media as to their priorities.
Most surveys being done in the country are mostly at the instance of
advertisers or advertising agencies and the media operators
themselves. Today, the top seven or eight market research agencies,
accounting for at least 75% of research, are owned entirely or partly
by foreign firms. With recent mergers and acquisitions, a certain
monopolistic trend is already evident in this function with an annual
turnover of well over Rs1,200 crore.
Together, advertising, market research and media planning set the
scope for media. These functions are already in the hands of
multinational firms.
While we still debate allowing foreign investment into our news media,
“foreigners” have already entered our newsrooms through these new
gates.
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