The powers-that-be have finally allowed foreign news magazines to publish from India, braving the possible backlash from our media tycoons
The mood in this year’s Indian Magazine Congress is decidedly going to be upbeat. The annual two-day conclave that starts on Monday (September 22) in Mumbai will see the cream of the country’s magazine trade in attendance.
The reason for their joy? On Thursday, the government announced a review of its print media policy by allowing the publication of foreign magazines carrying news and views. The magazines can be owned by an entity that is promoted by a registered Indian enterprise (under the Companies Act, 1956) and the entity can have at most 26 per cent of foreign ownership. Although the government communiqué doesn’t explicitly state it, one would think this 26 taka includes possible stake of foreign institutional investors.
The information and broadcasting mandarins have put in a few more facets:
1. Indian companies would be allowed to enter into financial arrangements such as royalty payments etc with owners of foreign magazines
2. Permission to be conditional on at least three-fourths of directors and all key executives and editorial staff being resident Indians
3. The title of the magazine should be verified and subsequently registered by the Indian company from the Registrar of Newspapers for India
4. The content can be up to 100 per cent identical to the foreign magazine concerned and the India publisher will be free to add local content. The Indian publisher would also be free to insert local advertisements
5. Permission would be granted for publication of only such magazines that are being published in the country of their origin. In addition, they should have been published continuously for a period of at least five years, and the publication must have a circulation of at least 10,000 paid copies for the last financial year in the country of its origin.
According to a government handout, the decision will “provide Indian readers access to foreign magazines at cheaper rates in comparison to the same magazines imported at much higher rates”. “The Indian reader would be benefited immensely as he/she would be able to keep abreast with the latest events and happenings on the global scale,” it concluded.
What this means is that a magazine like Time can publish in India. The content can be drawn fully from the international edition, though the Indian partner can add its own. Ads can be local. All senior business executives and editors have to be Indian. The board of directors could have one-fourth members nominated by the foreign partner. To my mind, all other clauses are inconsequential.
Mind you, this rule is applicable only for news and current affairs players in the magazine segment. Hence Fortune and Forbes, which announced plans to enter the country via the Ananda Bazar Patrika and Network 18 groups will now be able to enter with their own names. Expect several other news publications – Time, Newsweek, Economist and BusinessWeek – to also come in.
But, wait a minute: what about international newspapers? Why the hell can’t we have a big brand newspaper here? A Wall Street Journal, an International Herald Tribune, Guardian, New York Times, Times or Independent of London? I’m not sure if an NYT or Guardian will have readers in large numbers here, but surely the business dailies will find takers. So, why can’t they be allowed with a 26 or even 49 per cent stake? If the newsweeklies are allowed, if foreign channels are allowed – Star News and CNBC, for instance – why can’t the papers be here?
As of today, newspaper companies can have at most 26 per cent of foreign direct or institutional investment. They can’t come in with their own names and even if there’s a tie-up with an international paper, the Indian paper (like Mint has with Wall Street Journal) can only have one-fifth of its editorial space taken up by content of the partner. “The total material so procured and actually printed in an issue of the Indian publication does not exceed 20% of the total printed area of that issue space used,” goes the guideline. And it adds: “The syndicated material does not include full copy of the editorial page or the front page of the foreign publication.”
Successive governments – the BJP and Congress-led ones – have pussyfooted the move to bring in foreign direct investment in print. They don’t want to take a decision because they are scared of a backlash from powerful media lobbies.
If the government can allow dollars to fuel all other arms of the media – ad agencies, creative and media buying, advertisers (businesses and service providers), public relations firms, film-makers, telecos, non-news television channels and print media, FM stations, market researchers, telecos, software makers, printers, newsprint suppliers, satellite, cable and DTH providers and even journalism schools – why can’t we have phoren money in the news media?
The argument that foreign-owned news firms can work against the interests of the country is a lot of poppycock. We know that the media planners can squeeze the juice out of any media entity. So if 100 per cent foreign ownership is allowed for a media buyer, what’s wrong with foreign interests in the news business?
Pradyuman Maheshwari is a Mumbai-based editor, trainer and media commentator. The views expressed here are his own. Email: pradyumanm@gmail.com