#e4mOpinion - Broadcast bill U-turn: Is the government playing for time? 

Late Monday night, on August 12, the Ministry of Information and Broadcasting (MIB) surprised media owners by extending the consultation period for the Broadcasting Services (Regulation) Bill, 2023. 

“The draft Bill was placed in public domain on 10.11.2023 along with the explanatory notes for comments of the stakeholders and the general public,” read a social media post from the MIB ministry’s official handle. 

Curiously absent from this announcement is any reference to the second draft that had been circulating clandestinely among select media houses.

While some independent news content creators and broadcasters celebrated the extension of the consultation period for the first draft implicitly acknowledging the withdrawal of the second draft, the government's true intentions for the media sector remain unclear at the moment. The withdrawal of the second draft as pointed out by multiple stakeholders looks like a temporary retreat. 

One industry expert believes this is likely a tactical delay rather than a step back. 

Coming back to the first draft of the bill, which is now back on the consultation table, increased oversight on media content remains a significant worry for the industry.

What did the first draft entail? It outlined a regulatory framework that industry experts fear could lead to subjective content control and open the doors to censorship.

Central to this concern are the proposed Content Evaluation Committee (CEC) and Broadcast Advisory Council (BAC). The CEC would be primarily responsible for self-certification, while the BAC would settle complaints about programme and advertisement code violations. According to the draft, ultimately, the government retains the power to issue directives and penalties based on the BAC's recommendations. 

Experts also highlight the lack of clear definitions within the draft, raising concerns about its potential impact on creativity and content diversity. Legal experts have questioned the bill's mandated adherence to a government-determined program code. 

The lack of clear guidelines for this code, according to them, grants the government unchecked authority, potentially leading to censorship, penalties and legal disputes. That apart, the mandatory certification process also introduces a bureaucratic and cost hurdle factor in the scheme of things, that can significantly delay content release. 

Some businesses in the media space, in particular, rely on timeliness to stay competitive. Imposing additional layers of approval can hinder their ability to deliver up-to-date information to the public. 

As for costs, it is crucial to understand that the television industry already operates on thin margins. According to the GroupM report, ‘The Changing Landscape of Indian Television’, TV households in India have grown by only 1.1% CAGR over 2020-2023. FY24 proved to be a challenging year for the TV broadcasting industry with both ad and overall revenues declining. Television advertising continued its slump, registering a modest 7% growth for the second consecutive year, according to the latest Pitch Madison report. 

TV ADEX moved up and touched Rs 32,886 crore in 2023, but its share steadily declined from a high of 42% in 2020 to 33% in 2023. Most key players in the space recorded dim growth. Sun TV Network, for instance, saw a 4.2% decline in ad revenues. Network18 Media and Investments Private Limited’s consolidated loss for FY24 stood at Rs 396.7 crore up from Rs 15.7 crore in FY 2023. However, their ad revenue increased primarily driven by its sports and reality show offerings. Zee held stead with ad revenue marginally down to Rs 4057.7 crore from Rs 4057.9 crore in the previous fiscal. 

Some broadcasters held ‘macro-economic environment and other external factors’ responsible for the subdued sentiments.  

Talking of broadcasters, while most broadcasters have been cautious in publicly criticising the government's proposed broadcast regulations bill drafts (the ones they received and the ones they did not), independent media owners, many of whom were previously affiliated with larger networks, have openly expressed concerns. 

According to them, the government is increasingly centralising control over media content, reminiscent of the Telecom Regulatory Authority of India's actions that have also been making consistent attempts to regulate pricing, ratings, and distribution agreements alongside pushing for a level playing field between linear TV and OTT platforms through its policies. Broadcasters argue that the fundamental differences between the push-based model of linear TV and the pull-based nature of OTT platforms necessitate distinct regulatory approaches. 

However, their calls for differentiated regulation have fallen on deaf ears, both at MIB and TRAI. Overall, the industry is now in a ‘wait and watch’ mode. Because the government's decision to extend consultations on the Broadcasting Services (Regulation) Bill has offered temporary respite, but little clarity.

Alongside it has also raised critical questions. Will the government genuinely take into account the industry's concerns? Will the revised draft significantly differ from the previous versions? Or is this simply a delay before implementing tighter controls?