Global media mogul Rupert Murdoch plans to add half-a-dozen more to the clutter. And all six, to be launched by Star India in the next twelve months, will be in the vernacular.
Skirts print media talk, saying ‘We don’t want to publish anything we can’t take responsibility for’
MUMBAI: There are 350 television channels in India today, according to TAM Media Research.
Global media mogul Rupert Murdoch plans to add half-a-dozen more to the clutter.
And all six, to be launched by Star India in the next twelve months, will be in the vernacular.
“The investments will be in the region of $100 million,” Murdoch said on Monday.
Star India is a wholly owned subsidiary of Star Hong Kong, which, in turn, is owned by News Corp, the Murdoch flagship and one of the biggest media empires in the world.
The media maven was in town to launch the Dow Jones India Titans 30 index, a potential rival to the Bombay Stock Exchange Sensex and the National Stock Exchange Nifty indices.
He preferred to use the launch event to talk on the media business and his interests in India.
Dismissing speculation that he was lobbying with politicians for his possible ventures in print, where foreign direct investment is restricted to 26%, the News Corp chief said, “I’m not here to seek favours.”
As long as the cap on foreign investment exists, he said he would not be interested.
“We don’t want to get into publishing. We don’t want to publish anything we can’t take responsibility for,” Murdoch said.
At present, FDI in print media cannot exceed 26%.
“All countries in the world have their own regulations. But with arrival of the internet, these sort of controls are becoming ridiculous. In time, technology will make them untenable.”
Murdoch sees “...the creation of wealth along with the emergence of a better educated middle class,” as ample reason for his faith in India.
On internet, he said the monetisation of Myspace.com, which was bought by flagship News Corp in July 2005, was continuing with great success. “We believe that social networking sites offer better opportunities for advertising since people often spend a longer time on such sites as opposed to search engines.”
At the event, Robert Thomson, editor in chief, The Wall Street Journal, said Dow Jones New Wires will increase staff strength in the city from 25 now to 60-70 in the next six months.
“(After Murdoch’s taking over) the renewed emphasis is on news. There will be extra emphasis on digital delivery. We are looking to put more free content online.”
But he added that there is no plan to make the entire online content gratis.
The Dow Jonex Titans index will include the 30 largest and most liquid stocks traded in India.
It can be used by investors around the world to track the progress of Indian companies and the economy.
In its present form, financials and basic materials comprise more than 40% of sector allocation.
The largest companies in the index include Reliance Industries, Infosys, HDFC, Bharti Airtel, L&T.
The market capitalisation of the index will be calculated in rupees as well as US dollars.
Thomson said, “While we must reflect the global market as it is, we must also recognise the rapid rise of companies in countries such as India.”
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