Thursday, August 13, 2015

Lack of transparency leads to low credibility, says Dr Subhash Chandra

Posted on August 12, 2015 from Maharashtra ι Report #21802

Can Dawood Ibrahim start a television news channel in India? "Not too difficult," says Dr Subhash Chandra, chairman of Essel Group, which runs over 70 TV channels under the Zee umbrella and dna. Worse, if the fugitive on the run already funds a media enterprise in India surreptitiously, do we have a system in place to detect and counter it?
Dr Chandra nods in the negative. The man, who runs a media behemoth that expanded to over 170 countries across the globe over three decades, has now called for "proper regulatory framework" to create stricter entry checks and "stringent rules" to expose the corporate veil of news channels and get to the bottom of their funding.
The quest for transparency and the need for a rule book stemmed from an expedition that he took along with a clutch of Zee group editors two months ago, to the villages, the heart of India. "I took my editors to see what is liked and disliked by the rural folk. Instead of appointing a research agency, I said, let's go and find out ourselves."
It turned out to be an eye-opener. "A villager in Meerut told us on our face that you (all news channels in the country) are all sold out. After a brief discussion, the same person also told us that you are our last hope. Yes, contrasting views."
The lack of transparency related to news media ownership has begun to nibble on their credibility. For example, he points fingers at a couple of news channels in the Hindi heartland – one 'owned' by a practicing chartered accountant, another clandestinely managed by the wife of an ex-service man from UP.
In India, one can run a television channel for Rs 10-15 crore a year. "What if a real estate player thinks it is just the cost of keeping a PR consultant and starts a new channel?"
"Unfortunately, our system doesn't go even one layer beyond what the owner has submitted as part of his application. I will not be surprised if the money trail ends at Dawood Ibrahim," says Dr Chandra.
Undoubtedly, it compromises the national security.
Media is a soft power which in a large democracy like India creates public opinion so that the other pillars of the society such as the executive, legislature, judiciary and even business, do not use the democracy for their own gains. "TV being a mass medium has a far deeper penetration, reaching even the remote rural areas of the country. Hence it has a far greater impact on the society."
He avers that before issuing new license to news media organisations, there should be a rigorous scrutiny the way the Reserve Bank of India (RBI) scruitinises before issuing any license in the financial services sector. "RBI applies fit-and-proper criteria by which they go to the ultimate source of funding," he says.
While the total number of news channels across Asia, barring India, does not add up to 150, India is the only country which has got a massive 368 TV news channels across several languages while another bouquet of 100 channels awaits license from the government. What is unblemished about them is that several of them are profusely bleeding.
"Why are they still in the business if they continue to bleed?"
India's rules prevent political parties and religious groups from running news channels. But there are many who illegally operate channels. "If you ask them, they will tell you they aren't. They are funding it, and some of their associates are running it," he says, stressing the importance of going behind the corporate façade.
Then comes the issue of security clearance. "Even the security clearance is subject to misuse in a way." In January 2015, the Cabinet issued a notification that the security clearances of shareholders, apart from the directors, are also required.
Dr Chandra is quick to clarify that his endeavour is not to target a Sun TV, which is currently embroiled in controversy, or any other media company. "In Sun TV's case, the home ministry and I&B ministry are singing different tunes."
All these raise concerns over the lack of transparency in the system.
Zee, which is preparing the groundwork for its English news channel, hopes to garner support from the industry.
"I wanted to trigger a debate. I am happy that the industry has begun to talk. Someone had to bell the cat. I have done that," adding that "We are open to the scrutiny."
So, what is his next big move?
He has been planning to launch an international news network, in English, for global audiences with an India point of view. "If you watch BBC closely, you will realize that there is some British angle in most news items that they disseminate. CNN is having an overtly American point of view. They do not even shy away from criticising those who are against the US interests. Al Jazeera, which comes from a Middle-East country, gives a middle-eastern point of view in its programming. Don't know if we can reach their levels, but will surely attempt it."
He refuses to divulge the capex plans for the new news network, adding with a smile: "It will be huge investment."
Is there any concern over Netflix, YouTube and the growing video streaming that may disrupt the cable and TV channels?
"No. It, in fact, throws up a huge opportunity to have another window for consuming content, though 3G or 4G," he says.
Recently, Zee Group launched an initiative - Ditto TV, where one can watch live streaming of Zee TV serials, episodes, videos & shows for free. Similarly, it also launched an app - Zee Family (an IPTV service that gives viewers instant and unlimited access to a wide variety of Bollywood and region-specific content from the Zee suite of TV channels on their mobile devices).
"We are already talking to telecom companies. You will see more action soon," says Dr Chandra.

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