Technological advancements have blurred the lines between legacy media and digital media. However, the regulatory framework for each medium remains distinct. This article analyses the extant regulatory framework applicable to this industry as well as the benefits of converged regulation.

Media and entertainment is one of the fastest growing industries in India. The industry was valued at INR 1.38 trillion in 2020 and is expected to grow to approximately INR 1.79 trillion by the end of 2021. ‘Media’ encompasses any outlet or tool for the storage and mass dissemination of information or data. Traditionally, media comprised print media (journals, newspapers and the like), and broadcast media – i.e., television and radio – and the various types of media were regulated separately. However, the advent of the internet and social media has expanded the scope of media substantially and created a significant overlap between media and technology. The COVID-19 pandemic has only accelerated this phenomenon.

The convergence of traditional content-led organisations with telecom entities and technology-led platforms results in content reaching a wide audience base through digital distribution. Recent mergers & acquisitions also suggest an intent to create a converged direct to customer business with diverse business segments.

Regulation in India

Regulation of the Indian media and entertainment industry has always been somewhat fragmented. Broadly, the industry is regulated by the Ministry of Information & Broadcasting (MIB) and the Ministry of Electronics and Information Technology (MEITY) through a number of statutes. Illustratively:

a. Newspapers and print magazines are overseen by the Registrar of Newspapers, a statutory body under the MIB, through the Press and Registration of Books Act, 1867;

b. Radio, television, and internet licences are granted by the MIB and MEITY under the Telegraph Act, 1933;

c. The operations of cable television networks are governed by the Cable Television Networks (Regulation) Act, 1995; and

d. The certification of films is undertaken by the Central Board for Film Certification (CBFC) under the Cinematograph Act, 1952.

Impact of fragmented regulation

Previously, the fragmented regulation of different types of media was not problematic as there was little to no overlap. However, with the introduction of streaming platforms and e-papers and e-magazines, legacy media such as print media and broadcast media can now also operate on the internet. As a consequence, legacy media enterprises who operate through digital platforms are now also required to comply with additional regulatory requirements. Illustratively, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules) apply to all publishers of digital content and, amongst others, require these publishers to follow a code of ethics, and classify content in the manner required by the CBFC, and the programme and advertising codes.

Additionally, as media enterprises in India and abroad expand their operations, either through market players converging their services, or through legacy media moving on to the internet, they may be subjected to additional licensing requirements. This could lead to higher costs and longer timelines for commencement of operations. Complying with various statutes under the oversight of different regulators may also be problematic to the extent that there is an overlap or a conflict between statutes or the approaches taken by the concerned regulators.

Regulatory convergence overseas

Technological convergence in the media industry creates conflicts between lightly regulated contemporary media and heavily regulated traditional media. The increased blurring of lines between different kinds of media (in terms of content, transmission, and end-devices) has led legislators in several jurisdictions to consider converging the regulatory framework for media and, or, designating a single regulator for all types of media.

In the United Kingdom, OfCom regulates television, radio, telecommunications, video on demand sectors, and wireless communications services. Similarly, Info-communications and Media Development Authority (IMDA) is the converged regulator for into-communications (including telecoms and IT) and media in Singapore.

The best fit for the Indian market

In the digital age, streamlining of legislation for the Indian media and entertainment industry, or, at the very least, the regulator for the industry is necessary to ensure ease of doing business, lower costs and greater consistency in enforcement of regulations. The convergence of the Indian telecom and broadcast industries was originally proposed in 2001 when the Communications Convergency Bill, 2001 was introduced in the Lok Sabha. The Bill proposed to repeal and replace the statutes regulating telegraphy, telecom and cable television. However, representations were made against the enactment of the Bill on the ground that the Bill was ahead of its time and that IT in India had only progressed as it had because there had been no government intervention.

Converged regulation for the media and entertainment industry will bring clarity as to the compliance requirements applicable to industry players, particularly, newly merged players who want to provide media as well as entertainment services. The overlap between several regulations in this industry causes confusion, and acts as a deterrent to players entering the industry.

Despite the case for converged regulation, the creation of a single, consolidated legislation to regulate all aspects and types of media may not be feasible at this stage. Drastic changes in regulation across types of media may lead to confusion and uncertainty within the industry, and difficulties in implementation.

As a first step, India should consider designating a single regulator to oversee all categories of media. A single regulator may be able to bring uniformity in regulation to ensure a level playing field and free competition. Additionally, if India were to have a single regulator, there would be a lower risk of conflicting interpretations of the law.

Any doubts as to whether a single regulator may have the relevant expertise to effectively regulate all elements of the media and entertainment industry may be addressed through the creation of distinct, specialist departments that collaborate with one another. This would also address concerns over a dilution in expertise.

A single regulator will also reduce the financial burden on the country’s resources as some activities like issuance of notices for any breach, setting up of separate offices, etc. can be streamlined and centralised. Further, the convergence of multiple regulators that are adjudicating on overlapping laws will allow the State to effectively utilise available resources including finances, empowering legislations, qualified workforce, etc. towards the converged regulator, thereby improving the efficiency of enforcement of the regulations.

Once the effective functioning of the single regulator has been established and there are streamline interpretations of existing laws and license guidelines, the Legislature may consider replacing India’s existing media laws and enacting consolidated legislation for traditional media and separate, consolidated legislation for digital media. However, even to the extent that there are separate statutes governing traditional media and digital media, the law must necessarily address scenarios where traditional and digital media converge.

This article is co-authored by Abhilasha Mittal.