India has been debating the issue of cross-media ownership for the
last over 60 years.However, it is only now that it is being raised by
Telecom Regulatory Authority of India (TRAI) at the behest of the
Ministry of Information and Broadcasting for the first time.
In fact, TRAI in its paper expresses limitation on checkmating
cross-media ownership. Rather, softly it has given it up. TRAI Chairman
Rahul Khullar said the regulator would, with the help of the Competition
Commission of India (CCI), attempt to ensure that there are a minimum
number of mergers and acquisitions. A consultation paper will spell out
restrictions, make mandatory disclosure requirements, spell out levels
of market share which will ensure plurality and diversity, list general
disqualifications, recommend how cross media ownership can be dealt
with, set rules for disaggregated markets, and ensure minimum mergers
and acquisitions
The Indian Media and entertainment industry is estimated at about Rs
1052 billion and is growing by the day. Apart from the monetary value,
the industry is important as it can influence opinion in political
domain and trends in business. Groups owning a cross section of media
have the capacity to tilt the balance in their favour though the
industry does not accept it.
Veteran journalist Paranjoy Guha Thakurta says the sheer number of
media organisations and outlets often conceals the fact there is
dominance over specific markets and market segments by a few players –
in other words, the markets are often oligopolistic in character. The
absence of restrictions on cross-media ownership implies that particular
companies or groups or conglomerates dominate markets both vertically
(that is, across different media such as print, radio, television and
the internet) as well as horizontally (namely, in particular
geographical regions).
It is also well-known that political parties and persons with
political affiliation own/control increasing sections of the media in
India. There are two kinds of such newspapers or channels. The one which
are known to be published by political parties while others are
published as independent papers or run as independent channels but show a
marked tilt in favour of the owner’s political preference.
There are a few instances where the promoters have used the profits
from their media operation to diversify into other unrelated businesses.
These are the issues that need to be addressed to strengthen the
democratic principles. But even TRAI guidelines are not so specific.
The credibility of news has always been an issue. But despite
concerns about it, the Nehru government did not do much to control
varied interests of newspaper owners. It was debated often. Everyone
stressed on the merits of having a free press. Many agreed that when a
newspaper owner has varied interests to serve, it compromises with news
publication.
Journalism evolved in India over a long period since the first
newspaper, Bengal Gazette and Calcutta Advertiser of James Hickey, was
published in 1780. Journalism took a new turn in the history of the
sub-continent and the Indian press gradually reached a stage where it
could begin to influence the country’s economics, politics and culture.
Here we are talking of a period when the Indian press was confronted
with the might of British imperialism in whose domain the sun never set,
as was the common refrain.
The press in the Indian subcontinent developed precisely for
awakening of the masses in the pre-independence era, pitted against
colonialism and imperialist tyranny. Marx had also commented in 1853,
while discussing about the probable results of British rule in India,
that this was the first time a free press, owned by the common
inheritors of Indians and Europeans, had originated in Asiatic
societies, and it would become a new and powerful instrument of India’s
regeneration. In so far as the first half of the 20th century is
concerned, the press played precisely this role in the sub-continent.
However, here we must bear in mind that the evolution of the press
took place in the subcontinent on a totally different line after the
country’s independence and partition in 1947. The Press Commission,
formed under the chairmanship of J.S Rajyadhyaksh in 1952, thus drew
attention to this aspect in the first part of its report, submitted in
1955.
He wrote, “Formerly, most of the Indian Press had only one objective
and that was political emancipation of the country. Most of the
journalists of that era were actuated by fervent patriotism and a
feeling that they had a mission to perform and a message to convey.
Political emancipation having been achieved, the emphasis has shifted
and the newspapers are no longer run as a mission, but have become
commercial ventures.” (Press Commision, p. 482).
In the same report, the Commission also commented that now the big
newspapers, in particular, either kept mum on important occasions or
hesitated from leading the public opinion, because they have to take
care of certain business interests; they moved very cautiously and they
had to act on the orders of the powers-that-are.
Therefore, “some of them are partisan in the presentation of news in
respect of the financial interests with which they are allied; there is a
certain timidity to expose courageously the shortcomings of those who
are in a position of power and authority; there is a tendency to
suppress facts which are unfavourable to their own interests or to the
financial interests with which they are associated”, Press Commission
noted.
It was precisely this press which the late V.K. Krishna Menon, an
important member of Jawaharlal Nehru’s Cabinet, had dubbed as “the Jute
Press”. The term originated as in early independent India most of the
press was owned by jute industry barons and was used to further their
own interests.There was another that was called “steel press” being
owned primarily by the steel industry owners like the Tatas. The
Mahalonobis Committee, which developed the Second Five-Year Plan of the
country, also made very trenchant criticism of the role the press played
in the concentration of wealth in a few hands
The Commission found that there was a great deal of scurrilous
writing often directed against communities or groups, of indecency and
vulgarity and personal attacks on individuals. It also noted that yellow
journalism was on the increase in the country and was not particularly
confined to any area or language. The commission, however, found that
the well established, newspapers on the whole, had maintained a high
standard of journalism.
It remarked that whatever the law relating the press may be, there
would still be a large quantity of objectionable journalism, which,
though not falling within the purview of the law, would still require
some checking. It felt that the best way of maintaining professional
standards of journalism would be to bring into existence a body of
people principally connected with the industry whose responsibility
would be to arbitrate on doubtful points and to ensure the punishment of
any one guilty of infraction of good journalistic behavior. An
important recommendation of the commission was the setting up of a
statutory Press Council at the national level, consisting of press
people and lay members.
The Second Press Commission was appointed on May 29, 1978 under the
Chairmanship of PC Goswami. Later KK Mathew became the Chairman and
submitted its report in 1982. The Second Press Commission wanted the
press to be neither a mindless adversary nor an unquestioning ally. The
Commission wanted the press to play a responsible role in the
development process. It opined that the press should be widely
accessible to the people if it is to reflect their aspirations and
problems.
The question of urban bias too received attention of the Commission.
The Commission said that for development to take place, internal
stability was as important as safeguarding national security. The
Commission also highlighted the role (and, therefore, responsibility) of
the press in preventing and deflating communal conflict.
The recommendation of the First Press Commission for the first time provided the idea of what a responsible press should be.
The Second Press Commission formulated in a clear manner that
development should be the central focus of the press in a country, which
is building itself to become a self-reliant and prosperous society. The
Commission declared that a responsible press could also be a free press
and vice versa. Freedom and responsibility are complimentary but not
contradictory terms, it said.
The Press Commissions recommended that newspaper industries should be
separated from industries and commercial interests. It also recommended
that newspaper industries should be relieved from the impact of foreign
capital.
Much of it remained on paper. In 1955, the cabinet agreed on
restraining foreign capital in newspapers but it was relaxed in 2000,
which allowed 26 per cent foreign equity in newspapers but it ordained
that the Editor has to be an Indian.
Does it make much of a difference? If we go by the First Press
Commission, it does not. It noted that even in early 1950s, there was
decline in the status of the Editor particularly in daily newspapers.
It has only accentuated as some papers like Times of India sometime
back had even stopped giving the name of the Editor in their
publications. In many newspapers, editorial control is being taken over
by the advertising and managerial functionaries.
Promoting news of other group industries either directly or
surreptitiously has become more a rule than exception. The line between
objective journalism and promotion of group industries has blurred.
Why should it not be? A group like Times of India owns 40 different
media and other businesses. So does Hindustan Times, Ananda Bazaar
Patrika, Jagaran, Malayala Manorama, Zee and Bhaskar group.
It is possible to visualize three types of accumulation of ownership
interest in the media: cross-media ownership across the various carriers
such as television, radio or print; consolidation, including vertical
integration among media operations of content, carrier and distributor
within a media segment such as television or radio; and market share
dominance in a given geography within each media segment.
In the diverse cultural, lingual and social settings in our country,
it may be difficult to visualize conditions of media dominance leading
to market monopoly.
However, there are already at least six states where a single media
house has a clear and growing dominance. These are media groups that are
emerging as national conglomerates. They are all in the news business
as well as in entertainment, media distribution and network business.
They own newspapers, magazines, radio, cable TV and television channels,
to name their key businesses.
The latest development of purchase of The Washington Post in the US
by Amazon is an instance of the emerging threats and interests of
powerful groups in vibrant media organisations.
Most media companies in India and abroad are integrating vertically
to sell cross-media, often acquiring or building multimedia platforms.
News Corp.’s Star TV India and Sun TV Network Ltd, Zee group and others
already own DTH and cable distribution platforms. Star’s cross-media
India operations include television channels, Internet offerings, radio,
mobile entertainment and home video (incidentally, 11 cable
distribution companies provide some 400 television channels in India).
Sun Network has 14 TV channels in four states, cable assets, four
magazines, radio stations and two newspapers. In Tamil Nadu, the
dominance of Sun in cable and satellite TV (channels and distribution
network) and now in the DTH market is quite visible. Sun TV and Jaya TV
have evolved as rivals not only in the business sector but also the
political set up as they represent two important political parties in
the state.
In Andhra, dominance of Eenadu group was challenged by YS Rajashekhar
Reddy’s Sakshi – a television channel and some magazines. Some years
back some of the news channels of Eenadu group despite bearing the name
have changed hands. Some of these have been taken over by TV 18 group.
In India, there is no general policy on ownership and cross-media
restrictions, as far as restrictions between print and electronic media
are concerned. However, the restrictions for different segments within
the broadcasting sector are dictated by the policy framework for each
segment, such as DTH guidelines or FM radio policy.
It is indeed time to debate regulatory issues for cross-media
ownership and, in the absence of an independent media regulator, the
TRAI discussions have long-term implications for the critical and
booming Indian media industry, says P.N. Vasanti, Director of New Delhi-based multidisciplinary research organization, Centre for Media Studies.
The Hyderabad-based Adminstrative Staff College of India (ASCI) in
its 200-page report has pointed out that there is “ample evidence of
market dominance” in specific media markets and argued in favour of an
“appropriate” regulatory framework to enforce cross-media ownership
restrictions, especially in regional media markets where there is
“significant concentration” and market dominance in comparison to
national markets (for the Hindi and English media). The government sat
over the report for three years till the parliamentary standing
committee pulled it up.
Paramita Das Gupta of ASCI named Sun TV, Essel Group, Star India, and
Reliance ADAG as the top houses with large-scale horizontal and
vertical cross media ownership, while five other major groups owned the
largest number of TV and radio channels.
She referred to the Broadcast Services Regulation Bill 2007, and
wondered how the government had arrived at the figure of 20 per cent
cross-media ownership.
In India, there is proliferation of publications, radio stations,
television channels, and internet websites. It ensures one thing -
plurality, diversity, and consumer choice. There were over 82,000
publications registered with the Registrar of Newspapers as on 31 March
2011. There are over 250 FM (frequency modulation) radio stations in the
country (and the number is likely to cross 1,200 in five years) –
curiously, India is the only democracy in the world where news on the
radio is still a monopoly of the government.
The Ministry of Information & Broadcasting has allowed nearly 800
television channels to uplink or downlink from the country, including
over 300 which claim to be television channels broadcasting “news and
current affairs”. There is an unspecified number of websites aimed at
Indians.
But number of registration and domination is not the same. The media
scenario is dominated by less than a hundred large groups or
conglomerates, which exercise considerable influence on what is read,
heard, and watched, says Guha Thakurta. One example will illustrate this
contention. Delhi is the only urban area in the world with 16 English
daily newspapers; the top three publications, the Times of India, the Hindustan Times, and the Economic Times, would account for over three-fourths of the total market for all English dailies.
Similar is the situation Kolkata which is dominated by Telegraph,
Ananda Bazar Patrika, (both ABP group, which has partnership with the
Star News), Times of India, Pratidin and Vartaman. Chennai has The
Hindu, New Indian Express and some Tamil papers. Mumbai has Times of
India, DNA, Free Press Journal, and Marathi papers.
Every other region has one or the other group that dominates certain geographical areas.
The Parliamentary Standing Committee on IT, headed by Congress MP Rao
Inderjit Singh, noted that the issue of restrictions on cross-media
ownership “merits urgent attention” and needs “to be addressed before it
emerges as a threat to our democratic structure”. It urged the Ministry
to “formulate” its stand on the issue in coordination with the TRAI
“after taking into account” international practices.
Indeed, it is so important as Kuldip Nayar said sometime back. He
says, “A reader may be shocked to know that the news he avidly reads is
paid for. His frustration and helplessness are heightened because he
does not realise which part of the story is news and which part is
fake.” Nayar was speaking in terms of the violation of editorial
standards by the Bennet Colman group, which “does not bother the Jain
brothers because they treat the profession as an industry to earn money.
They feel proud that they have torn ethics into tatters and have still
remained the No. 1 newspaper in India. Not only that, they make more
money than probably any other newspaper in the world. The great Rupert
Murdoch's empire is 20 times bigger than the Times of India. Yet he earns less profit”.
Media is beset with problems and blatant violation of norms. Working
Journalists Act that governs the wages and service conditions of
journalists and newspaper workers as well as ensures freedom to the
journalist has become a virtually a dead law. The government never tried
to enforce it. Media remains the worst employer.
However, as we have seen, the large conglomerates of the Indian media
are usually groups that own different companies. This allows them to
have controlling stakes both in broadcasting and distribution by
acquiring licences under their different subsidiary companies, thus
totally bypassing current restrictions and defeating the purpose of
their existence in the first place.
In a scenario like this, imposing curbs is a complex task.But it is
not insurmountable. The US forced Rupert Murdoch to abide by the
restrictions. Most other countries in the world, including the United
Kingdom, France, and Canada have such provisions. The UK swooped down on
Newscorp for malpractices.
While TRAI is making a feeble bid, it remains to be seen how much it
succeeds. For the functioning of a vibrant democracy, cross-media
ownership remains a threat. It needs to be checked. Stringent norms are
the need. But would it ever happen amid divergent interests of the
people who own the media and also those who have enough clout to
influence those who are in power. The nation would be watching the
developments with baited breathe.
But there are reservations also whether TRAI, which has an entirely
different mandate should be entrusted with the job or not. Disagreeing
with the current demands of the telecom regulator, Rohit Bansal, CEO and
Co-Founder, India Strategy Group, Hammurabi & Solomon Consulting
remarked, “Conceptually, I don’t see the legal basis in the reference
made to TRAI. Since when is it in TRAI’s jurisdiction to be sitting in
judgement over media ownership?”
Bansal further asked, “These messiahs of ‘plurality’ cannot see an
elephant in the room called the internet – the mother of ‘plurality’
among print, television, radio, broadcast distribution platforms, smart
phones and the social media? If they do, how about eschewing the
smokescreen of ‘plurality’ and setting the telecom terrier tilting at
owners of the Internet!”
Meanwhile, supporting the regulator’s move, John Thomas, Former
Editor, Operations, Vijay Times Bangalore said, “TRAI’s notification is a
positive step in establishing transparency in the system. Because the
media publishes news, and the same may be taken as a product if a media
company has an interest in any corporation. I believe that in a step
ahead, even journalists should declare their interests in the form of
equity shares in any company so that a reader knows that the publisher
or writer of this particular issue has an interest in the sector.”
(The author is National Secretary with the Indian Media Centre)