Charlie Stocks, media vice-president of Reuters believes the FDI limit for news broadcasters in India is consistent with the FDI levels across the world.
When much hullabaloo is being done in India about the foreign investment issue in media, Charlie Stocks, media vice-president of Reuters, however, believes the FDI limit for news broadcasters in India is consistent with the FDI levels across the world. Stocks, in a tete-a-tete with Nivedita Mookerji, said the television industry in India is also unique in its way too when compared to other markets. Excerpts from the interview:
What is your view of the Indian television market? How is it different from those in the West and other Asian economies?
Television in India is unique in comparison to other markets. It is already the third-largest in the world in terms of subscribers with 60 million cable and satellite homes in the country.
Moreover, there is also a lot of potential for growth as there are 110 million homes that have television sets. Additionally, TV advertising as a percentage of total advertising is substantially lower in India than in the Western markets.
But more importantly, it is even lower than other high-growth markets. As audience for cable TV grows, the share of advertising revenues will also increase. These two systemic facts make the TV market in India attractive and unique.
Since Reuters is into radio also, are you planning any tie-up with any Indian FM radio company?
News is not permitted in FM radio in India. It is not a current priority for us.
Do you think the Indian government should allow greater FDI in the media sector? Also, are you looking for uniformity in FDI across the media sector?
The Indian government will make the policy decisions that it believes represent the best interests of the population. News broadcasters and publishers are subject to FDI limits in every country. The maximum percentage of FDI for news broadcasters in India is consistent with the FDI levels across the globe.
What’s your view of Internet Protocol TV (IP TV)?
Internet protocol television is both distribution technology advancement and an internet experience enhancement.
The distribution technology should facilitate what consumers and content companies can do with television as a medium because it will be a more efficient system for using the bandwidth within the cable and telecom networks. As for broadband delivered video, it is the next generation of content that will drive the continued increase in internet usage.
Do you think it will be a viable model in India?
Both forms of IP TV are at the beginning of their lifecycles in all markets. How the business models will develop and grow is a subject of much discussion and debate. The only position that everyone agrees on is that it is definitely growing.
Reuters has a joint venture with the Bennett Coleman group for its television venture, Times Now. When there are so many other news channels in India looking for FDI, why did Reuters opt for Times Now?
It is our intention to make an investment in Times Global Broadcasting (the company that launched Times Now), if and when we receive the regulatory approval for our FDI.
As Reuters said in its consumer media strategy, Times Now fits into our global strategy. The vision for the channel is in conformity with Reuters’s consumer media objectives globally.
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