TRAI for regulating media ownership and content aggregators

TRAI is likely to come out with its recommendations on media ownership to minimise the conflict of interest in scenarios where non-media companies own a stake in a media house. If reports are to be believed, TRAI has already recommended non-media firms to mandatorily declare their media stakes.

In its consultation paper on issues relating to media ownership, TRAI stated, “A number of corporate sector entities are entering the media sector. Corporates can use media to bias views and influence policy making in a manner so as to promote their vested interests, while generating business revenues for themselves.”

According to sources, TRAI is also planning a recommendation for content aggregators. Aggregators sell bouquets of channels to distributors such as cable companies and DTH service providers. Government officials say that content aggregators do not come under any regulation. A draft regulation on aggregators will be released by the regulator for comments shortly.

Experts opine that the mandate by TRAI is to uncover private treaties undertaken by some publications with the corporate houses. Under such treaties, a publication buys a stake in a corporate house or vice versa. The publication then ensures that no negative news or coverage is reported against the corporate.

According to TRAI, firms with vested interest in a certain sector and a simultaneous stake in a media house cannot approach news with a neutral stand. The news showcased by such groups cannot be neutral and could be biased to a certain policy note by the Government, if the policy affects the business interest of the firm.

According to a rule by the Registrar of Newspapers India, every year in the fifth week of April publications have to enlist the names of corporations/individuals that have more than 1 per cent stake in the media house. Under the proposed TRAI mandate, many people/organisations from non-media that have invested in media companies, which are unlisted, will come under scanner.

TRAI is also expected to issue guidelines on cable TV sector. Firms controlling distribution clout would also need to declare their stake in such companies.

Source: http://cablequest.org/news/national-news/item/2968-trai-for-regulating-media-ownership-and-content-aggregators.htmlSource: http://cablequest.org/news/national-news/item/2968-trai-for-regulating-media-ownership-and-content-aggregators.html