 "Cable digitisation gets a leg-up via automatic route")
Last November, the FDI regulations for companies in the broadcast sector were relaxed to allow 100 per cent foreign investment in the aforementioned sectors — 49 per cent through the automatic route and beyond 51 per cent via the government route. Under the new reforms, FDI guidelines for terrestrial radio (FM channels), news channels, and non-news channels remain unchanged.
While 100 per cent FDI is allowed in non-news channels through the automated route, news media and FM radio are allowed up to 49 per cent FDI under the government route.
Ashish Pherwani, partner and head – advisory, media and entertainment, EY, “Digitisation of TV distribution requires large investments of infrastructure, with long-term return timelines to manage on-ground realities. Higher FDI will enable healthier balance sheets and help speed up the process of digitisation. It will also bring in leading global practices and enable greater transparency.”