K Madhavan urges govt to follow light-touch policy for broadcast, OTT & gaming

Disney Star Country Manager & President K Madhavan, who is also the Chairman of the CII National Committee on Media & Entertainment, has urged the Ministry of Information and Broadcasting (MIB) and Telecom Regulatory Authority of India (TRAI) to follow a light-touch policy framework on issues like broadcast tariff and content regulation.

Speaking at the 11th CII-Big Picture Summit, Madhavan said that a light-touch policy will bring new investments into the sector, particularly in emerging areas like over-the-top (OTT). He also urged the TRAI to adopt tariff forbearance while asking the MIB to follow a light-touch policy in the National Broadcast Policy.

Madhavan stated that the government should bring regulatory clarity at a national level for the growth of the gaming industry. He also touched upon the issue of piracy which is eating into the revenue of the entertainment industry. The Disney Star chief requested the MIB to come up with stricter and supportive IP protection and anti-piracy measures.

"Television broadcasting has been severely impacted, pending a resolution on NTO. A quick resolution is important for consumers, broadcasters as well as distributors. Ideally, we should adopt a principle of forbearance, in line with practices in most of the developed markets. We are closely working with Dr. Vaghela and TRAI on this matter and are hopeful of a positive resolution soon," he said during his opening remarks.

"We are also looking to the ministry of I&B for support on a comprehensive National Broadcast Policy covering Cable Television Network Act and in retaining a light-touch policy framework, especially in areas related to content. The industry would like to see a light-touch regulation. It will encourage especially in the newer and growing areas like OTT, innovation, and investment," he added.

While listing down the challenges faced by the M&E industry in the last two years, Madhavan stated that the industry is today performing better than at pre-pandemic levels. This, he said, is reflective of its agility and its readiness to embrace challenges.

Madhavan also emphasised the need for the media industry to constantly keep pace with the changing environment, or else, it will stagnate and become irrelevant. "Disruptive innovation is happening at a staggering rate. Consumers are changing, technology is changing, and consumption behaviour is changing. We have to challenge the status quo and question our own, old successful formulas."

He also stated that digital is a way of life for younger audiences, therefore, the media sector needs to adopt disruptive technology like metaverse to offer an immersive experience. "Imagine, the metaverse allowing users to walk around the arena during live sports; or sitting next to the participants or the host during reality shows – the innovations are limitless, bound only by one’s imagination."

The M&E sector, Madhavan said, remains under-penetrated and accounts for less than 0.9% of GDP. In developed markets, the M&E sector comprises 3 to 4% of the GDP. He added that the subscription and ad revenues in India are much below global levels. He pointed out that 100 million households are still without a television set.

Considering the failure of big blockbuster Bollywood films in recent years, the Disney Star chief asserted that the Hindi film industry needs to redefine its strategy to attract both local and global audiences. "Some of the recent regional movies have been very successful both in India and on global streaming platforms and it is validation that we have the potential to take our movies to global audiences. And it is time for us to work towards this goal," he added.

He also lamented the fact that India, despite its talented workforce, doesn't have even a 1% share of the strong $800-billion global Animation, Visual Effects, Gaming, and Comic (AVGC) sector. "This can be another IT-like sector, and we can definitely target a 5% market share in 5 years' time. That is close to 40 billion dollars and with a potential to create 160,000 jobs."

While noting that media companies had recently committed investments worth billions of dollars towards sports rights, Madhvan urged the regulator to leave price discovery for distribution to the market mechanism. He also stated that investments in indigenous sports like Kabaddi will encourage the adoption of sports all over India including in villages.