Powerful media conglomerates have been increasingly eyeing India (and China) as good investment destinations since these are the countries where media business is expected to grow very fast. Therefore, be it CNN’s tie up with Indian Broadcast News (IBN) or Reuter’s pact with The Times Group, the influence of globalization is undeniable.
In the early 1990’s, Dr Manmohan Singh, the then Finance Minister, inaugurated liberalisation in the country. More than a decade later in 2002, this touched the media when the Union Cabinet overturned a 1955 cabinet resolution that prohibited foreign ownership of Indian news publication. The new cabinet decision allowed 26% equity in news and current affairs publications and 74% equity in non-news and non-current affair publication.
Dominant gateway
The media has arguably become the most dominant gateway through which globalisation is virtually marching in the country. Following the opening of media to foreign direct disinvestment (FDI), foreign media players have begun to enter into tying up with their Indian counterparts to expand their own empires.
Entry of foreign giants like BBC, Reuters TV and CNN is only confirmation of the fact that India represents an increasingly attractive market to major corporations. They provide media with the content and services across borders and regions. Others from countries like USA, UK, South Africa, Qatar, Australia and Ireland are said to be keen to exploit the potential here.
Understanding globalization in media requires a compelling urge to weigh the pros and cons of its effects on the country’s economy. According to certain media critics, FDI in news media is unlikely to remain restricted to the stipulated 26%. This is only the thin end of the wedge that would culminate in the floodgates being opened.
These experts fear that this could eventually see the entire media passing into foreign control. The outcome of this would be annihilation of most of the small and medium scale Indian newspapers, as only a few major national players would have the strength to face up the competition.
Foreign players
Looking at it from another perspective, the entry of foreign players can also benefit the small publication houses, as they will now find a readymade access to global capital. This way, the smaller publication houses will have a good chance to rise and give stiff competition to established players. For example, Economic Times, publication of TOI Group had monopoly in publication of a business daily. But Business Standard after selling off its 14% stake to Financial Times Of London has thrown a punch back, as it is now published in seven cities of India, sold in 500 towns, and gets access to editorial and marketing expertise of international financial media.
The presence of FDI in media ensures a heavy pay package to the media professionals, and renders to have easy access to world-class magazines like the National Geographic. However, if the primary focus of foreign player is on profit, then there will be increase of advertisement, especially of foreign commodities. Media will, then, be more and more advertisement oriented, and the main role of the press will be lost in the bargain.
Some people consider globalisation of media responsible for westernisation of our culture. A recent study shows that teenage abortion rose by 20% in a year, as teenager feel themselves pressurised to indulge into such acts due to the explosion of sexually explosive material, which is n now readily available . An other disadvantage is that the coverage of international events in Indian newspaper is predominantly supplied by western news agencies like AP, AFP and Reuters. This gives more westernized approach to the news content.
However, its not one-way street. India has also contributed its bits towards globalisation. The biggest example is the explosion of interest in Bollywood. Hindi films are exported to more than 100 countries resulting in overseas booking and video rights that account for 30% of film revenues.
Role of the press
The question that arises now is that in a democracy like India, where press plays an important role, including building national integration, will the foreign investors will have same commitment, as they are primarily profit driven? Relief can be sought in an example of transnational operators like Rupert Murdoch, who have recognized the values.
In the early 1990’s, Dr Manmohan Singh, the then Finance Minister, inaugurated liberalisation in the country. More than a decade later in 2002, this touched the media when the Union Cabinet overturned a 1955 cabinet resolution that prohibited foreign ownership of Indian news publication. The new cabinet decision allowed 26% equity in news and current affairs publications and 74% equity in non-news and non-current affair publication.
Dominant gateway
The media has arguably become the most dominant gateway through which globalisation is virtually marching in the country. Following the opening of media to foreign direct disinvestment (FDI), foreign media players have begun to enter into tying up with their Indian counterparts to expand their own empires.
Entry of foreign giants like BBC, Reuters TV and CNN is only confirmation of the fact that India represents an increasingly attractive market to major corporations. They provide media with the content and services across borders and regions. Others from countries like USA, UK, South Africa, Qatar, Australia and Ireland are said to be keen to exploit the potential here.
Understanding globalization in media requires a compelling urge to weigh the pros and cons of its effects on the country’s economy. According to certain media critics, FDI in news media is unlikely to remain restricted to the stipulated 26%. This is only the thin end of the wedge that would culminate in the floodgates being opened.
These experts fear that this could eventually see the entire media passing into foreign control. The outcome of this would be annihilation of most of the small and medium scale Indian newspapers, as only a few major national players would have the strength to face up the competition.
Foreign players
Looking at it from another perspective, the entry of foreign players can also benefit the small publication houses, as they will now find a readymade access to global capital. This way, the smaller publication houses will have a good chance to rise and give stiff competition to established players. For example, Economic Times, publication of TOI Group had monopoly in publication of a business daily. But Business Standard after selling off its 14% stake to Financial Times Of London has thrown a punch back, as it is now published in seven cities of India, sold in 500 towns, and gets access to editorial and marketing expertise of international financial media.
The presence of FDI in media ensures a heavy pay package to the media professionals, and renders to have easy access to world-class magazines like the National Geographic. However, if the primary focus of foreign player is on profit, then there will be increase of advertisement, especially of foreign commodities. Media will, then, be more and more advertisement oriented, and the main role of the press will be lost in the bargain.
Some people consider globalisation of media responsible for westernisation of our culture. A recent study shows that teenage abortion rose by 20% in a year, as teenager feel themselves pressurised to indulge into such acts due to the explosion of sexually explosive material, which is n now readily available . An other disadvantage is that the coverage of international events in Indian newspaper is predominantly supplied by western news agencies like AP, AFP and Reuters. This gives more westernized approach to the news content.
However, its not one-way street. India has also contributed its bits towards globalisation. The biggest example is the explosion of interest in Bollywood. Hindi films are exported to more than 100 countries resulting in overseas booking and video rights that account for 30% of film revenues.
Role of the press
The question that arises now is that in a democracy like India, where press plays an important role, including building national integration, will the foreign investors will have same commitment, as they are primarily profit driven? Relief can be sought in an example of transnational operators like Rupert Murdoch, who have recognized the values.
