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The Indian government has today "clarified" it's position on Foreign Investment in Digital News Media in India.
It is restricting FDI to 26%, in line with print, and not just in media companies, but in news aggregators too.
https://dipp.gov.in/whats-new/clarification-fdi-policy-uploadingstreaming-news-and-current-affairs-through-digital-media
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It is restricting FDI to 26%, in line with print, and not just in media companies, but in news aggregators too.
https://dipp.gov.in/whats-new/clarification-fdi-policy-uploadingstreaming-news-and-current-affairs-through-digital-media
Thread
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1. Govt is positioning this as a benefit. That's incorrect. FDI has been reduced from 100% to 26%. How do we know it was 100%? NewsCorp had bought VCCircle in 2015: https://www.medianama.com/2015/03/223-news-corp-vccircle/ They've now sold it at a loss to Mint, after the FDI policy was announced.
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2. This move strengthens the traditional media lobby against digital companies. Traditional media co's had formed a digital lobby group in 2018. This is probably their doing: https://www.medianama.com/2018/10/223-on-the-formation-of-the-digital-news-publishers-association-what-was-the-need/ (3/n)
3. This might impact local bureaus of international publications too. Many contribute directly to websites,and not to television or radio. Not clear exactly what the impact will be, but this part of the clarification is worrying for them: (4/n)
4. The impact on news aggregators is particularly tricky. Will DailyHunt be impacted? Probably. Inshorts might be impacted too. What about Google News? They aren't a registered entity in India, even as an aggregator. (5/n)
5. What about Facebook and YouTube, where news content is posted by users? They, by definition, will be news aggregators. Note how it specifically mentions "user submitted links" in the clarification. They do have India entities. (6/n)
6. There's an increase in govt control over digital news media by controlling funding. Now you'll need government permission to raise funds. Instead of liberalising news media, easing restrictions on print, they've taken digital to the level of control they have on print.(7/n)
7. Digital News co's will get 1 year to restructure to comply within these guidelines. Digital news companies restructure to set up co's in Singapore, & raise funds in SG from here on. This means there will be less FDI in Digital Media in India. (8/n)
8. Additional restrictions, probably targeting The Wire: CEO has to be an Indian citizen. Foreign citizens employed need govt security clearance, and if not cleared, will have to resign. (9/n)
9. Reminder: This policy change has been finalised without public consultation. Representations they've received are not in the public domain.
10. Digital Media co's need to brace for another policy: Registration of Periodicals and Publications Bill, 2019 (10/n)
10. Digital Media co's need to brace for another policy: Registration of Periodicals and Publications Bill, 2019 (10/n)
11. I had spoken with @iamsoumyarendra about this policy when it was first announced, a year ago:
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