Television

Entertainment sector still unattractive, say VCs

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/05/30/FICCI_0.jpg?itok=ZO7xhQof

MUMBAI: Venture capitalists (VCs) haven't changed their outlook on the entertainment industry despite the recent sops offered by union minister of law & justice, commerce & industry Arun Jaitley in the EXIM policy announced on 31 March 2003.

Jaitley had mentioned the following in his speech: "For entertainment services, which is singularly handicapped by lack of investment, but has tremendous opportunities for exports, it is proposed to promote through suitable tax incentives contributions to venture capital funds which will provide finance to this sector. We are in dialogue with ministry of finance how best this can be done."

The verdict of the VC financing and mentoring session on the opening day of the Ficci FRAMES 2003 held on 13 March was clearly in favour of corporate governance and more transparency in the media business.

The Indus Entrepreneurs' (TIE) president elect and PassionFund CEO Mahesh Murthy says: "Nice though the policy is, I think there are very few or no venture capitalists who are even interested in funding efforts in the entertainment sector. The issue is not taxes - I am not sure that is the major problem."

"The key issues stopping investment in the entertainment and media sector are everything from a lack of corporatisation, over-dependance on personalities in businesses, low creation of intellectual property, the non-transparency of distribution and doubtful exit routes," says Murthy.

Murthy adds that VCs need to know whether they can get money out of any investment. Then, they would want to figure out if they could make any profits out of the investments. Then, and only then would they even begin worrying about taxes.

Enam Financial Consultant CEO Mahesh Chhabria also seconds the view: "Well, one needs to go through the fine print in greater detail. As of now, nothing much has changed. Indian media companies have failed to create sustainable media properties, create workable business system models, tackle competition, develop alternate business models, and ensure adequate returns to investors through corporate governance. The companies have also failed to develop scalable models."

While speaking during the Ficci FRAMES 2003 session, Ambit Finance pte MD Ashok Wadhwa had said: "The bad news is that VCs in the television content business no longer exist - what remains is private equity funding. "The so-called 'VCs' lost so much money in the last two years that they have become hesitant."

Several other media analysts who spoke to indiantelevision.com also voiced similar concerns. However, they added that the recent crisis in Asian financial markets would definitely benefit listed Indian companies as foreign financial institutions will channelise funds into India. "But very little of this inflow will find its way into the entertainment sector," they add.

Union minister of law & justice, commerce & industry Arun Jaitley had admitted that there were problems stunting growth in the course of his speech by saying: "We have immense potential for exports in certain services sectors such as entertainment and education. Each sector has its own specific problems such as lack of investment, inadequacy of laws relating to piracy. Nonetheless, we have to leverage India�s obvious advantages in these sectors."

The minister proposed to set up sector-specific working groups with representatives of ministry of finance, the administrative ministries concerned, the state governments, financial institutions and the industry to work towards a common goal by framing action plans to achieve the potential to be implemented within a specified time schedule.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/Chhote-Miyan-Dhaakad.jpg?itok=f6z4I-JB
Child prodigies on Colors' 'Chhote Miyan Dhaakad' from 25 Mar

MUMBAI: Bringing double bonanza of endless laughter and giggles is Colors' newest offering, Chhote Miyan Dhaakad.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/suproiya%20%281%29.jpg?itok=wTwcHslB
DD's kids channel could partner private players, launch this year

Building its channel bouquet. That’s what pubcaster Doordarshan which operates more than 37 channels is doing. Come later this year, and DD will launch a free to air channel (FTA) targeted at toddlers. This was confirmed to indiantelevision.com by its director general Supriya Sahu.

Television TV Channels Kids
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/jal-dhan%20%281%29.jpg?itok=xjkmVvqw
Aquaguard & Network18 to honour 'Water Heroes' at the 'Jal Daan' grand finale

The first season of the ‘Jal Daan movement’, Network18 & Aquaguard’s social campaign around creating awareness and generating solutions to the drinking water crises in India is reaching its culmination with a gala ceremony on 24th March 2017 at Trident, Nariman Point, Mumbai. The event will...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/jeff%20wender_0.jpg?itok=UjEkgLOU
Nielsen and Fox television stations renew local television ratings agreement

New York, NY – March 22, 2017 – Nielsen (NYSE: NLSN) has announced today that it has signed a long-term renewal agreement with FOX Television Stations (FTS) for audience measurement services. As part of the agreement, FTS licenses Nielsen’s Local Television ratings across all of the group’s 28...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/dd.jpg?itok=J9URWJvV
DD b'cast partner of CMS Vataran filmfest

Doordarshan today decided to become the broadcast partner for the 9th CMS VATAVARAN Environment & Wildlife International Film Festival and Forum later this year.

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/rahul%20%281%29_0.jpg?itok=3fmOAWlv
Rahul Chakravarti is Colors Bangla & Odia business head

Viacom18, one of India’s fastest growing media and entertainment companies, announced the appointment of Rahul Chakravarti as Business Head of Colors Bangla and Colors Odia. A veteran with over two decades of experience across FMCG, management consultancy and advertising, Rahul has worked across...

Television TV Channels Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/Amala%20Thomas.jpg?itok=RuQ7HHLj
Amala Thomas, who epitomised professionalism in the media, is no more

MUMBAI: Creative Producer and senior television professional Amala Thomas, who was the very epitome of professionalism all her life, is no more. The creative genius passed away on 17 March 2017 of a brief illness quite suddenly as she was very active. Amala is survived by her mother, sisters and...

Television Production House Fiction
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/Pushpaka%20Vimana_0.jpg?itok=wCA20ioJ
Infringement case filed against makers of the movie Pushpaka Vimana

Bangalore March 21, 2017: According to a suit filed against the makers of the Kannada movie Pushpaka Vimana (2017), they have not purchased the Kannada-language remake rights of the movie. It is an infringement of the rights owned by Kross Pictures India. Kross Pictures and Kross Television India,...

Television TV Channels Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/master-chef%20%281%29.jpg?itok=jWcHVoaF
MasterChef US Junior to premiere on Star World from 26 Mar

Star World and Star World HD will start airing the fifth season of MasterChef U.S. Junior starting 26 March at the prime time 9pm slot. The fifth season of the show, to be aired every Sunday, premiered in the US on 9 February this year with chefs -- Gordon Ramsay and Christina Tosi acting as the...

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories