NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (Ficci), which organised the annual Ficci Frames on the business of entertainment in Mumbai earlier this month, feels self regulation rather than imposing of new regulations in the form of content code and policing in the sector and a clear road map for digitization are the main elements to give a boost to the broadcast sector in the country."

Dr Amit Mitra, Secretary General of Ficci, said in a statement issued here today that these will be key growth drivers for the broadcasting industry. He said his comments were based on the industry's feedback from Ficci Frames 2010 which had been attended by more than 600 representatives from the broadcast sector. Top honchos and industry representatives deliberated on the pressing issues in over five sessions that were exclusively devoted to the broadcast sector.

Broadcast including radio and television comprises over 43 per cent of the overall pie of the M&E sector. The total size of the Indian M&E industry is Rs 587 billion and the Television sector accounts for Rs 257 billion. The broadcast sector is on a strong growth path and the outlook for ad spends is bright for the TV sector 

Times TV Group MD and CEO Sunil Lulla said the top line grew from Rs 16000 million to Rs 82000 million in 2010 at a growth rate of 39 per cent and the costs grew from Rs 11000 million to Rs 77000 in 2010 at 31 per cent. Hence the EBITDA (Earnings before interest, tax and amortization) grew at 19 per cent only 

However, he said there is hope for the industry as NSE and BSE grew at 22  per cent and 21 per cent respectively and the market valuation of TV Broadcasting market valuation grew by 34 per cent 

An interesting panel comprising of the top honchos of the broadcasting sector like Lulla, Turner International India Pvt. Ltd MD Anshuman Misra, NDTV Group CEO & Executive Director KVL Narayan Rao, Sun Network COO Ajay Vidyasagar, COO,  Viacom 18 Group COO and Colors CEO Rajesh Kamat took part.

Dr Mitra said While Ficci acknowledges the series of policy initiatives taken by the Ministry of Information & Broadcasting that have led to growth of this sector in the last decade, a greater commitment on part of the government along with some more enabling regulatory corrections is the need of the hour... 

Although Ficci is in favour of creating an independent and autonomous Broadcast Regulator which would help spearhead India in the broadcast and new media space, we would also want complete self-regulation doctrine for the sector rather than imposing new regulations in the form of content code and policing in the sector. This, many in the industry feel, would harm the growth of the sector....

We are in favour of self regulation in the broadcast sector and content code. The News Broadcasters Association (NBA) already has a self-regulation code of ethics and broadcast standards for news channels. Indian Broadcaster Foundation has initiated self regulation code for broadcasters to have checks and balances. This would pave for healthy growth of the sector", Mitra added.

The broadcast fraternity is unanimously in favor of self-regulation. The big broadcasters have their own content code and all stakeholders should come to an agreement with the self regulation code developed by IBF for member broadcasters, says Ficci.

Ficci feels that given the competition prevailing in the market, there is pressure on profitability of broadcasters. Weak infrastructure is another area which should be looked into by the government. Efforts must also be made to improve the reportage of cable subscription in the country 

A clear roadmap from the government on the digitalization process would make a positive impact on the broadcast sector. DTH has led the digital distribution process. The industry has witnessed tremendous growth on the DTH front with 16 million subscribers being added in the last three years. With over 43 million DTH subscribers expected by 2014, India will become the world's largest DTH subscriber nation. This will push the cable sector to digitize faster and bring down under declaration of subscriber base.

Ficci is also in favour of increasing the number of boxes for Television Measurement System and suggests that consumer growth in new towns should be taken into consideration for TRP measurement.