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August 2011

Managing the Mudrochs — Media markets must remain competitive and open

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
Reading Time 3 mins
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The latest controversy in the British media, triggered by unethical professional practices by journalists at Rupert Murdoch’s News of the World, holds important lessons for the Indian media, and not just because Mr. Murdoch has a significant presence in India and seeks more. The most important lesson is that public policy must prevent the emergence of all powerful media moguls like Mr. Murdoch. The extent of concentration in the Indian media, at both the national and regional level, has grown alarmingly. Regrettably, such growth in size and revenue has not always contributed to good journalism, as we now see in Britain, and as is obvious in India. Unlike in many other branches of business, in media there is no evidence that with size of business and operation comes either quality or reliability.

The dominance of one business group in one segment of the media is dangerous, so is the increasing control of such dominant players across different segments of the media, namely, print, television and radio. While the Government has not come forward with the promised broadcast Bill yet, the new FM radio policy has shied away from more stringent curbs on cross-media ownership. The ‘play safe’ policy of auctioning licences to the highest bidder has been preferred obviously because of the controversy surrounding telecom licences, but there is a downside to ‘transparent auctioning’ in the media business. It can privilege the powerful. Companies with deep pockets end up pocketing licences in the name of so-called transparency. A more confident government would have laid down other criteria too, including restricting cross-media ownership.

The sharp practices by Mr. Murdoch’s men and women in Britain draw attention to the hubris of a media intoxicated by power, made worse by the direct control that owners often exercise over editorial content. The consequent blurring of lines between the business bottom line and the editorial line is an assault on the idea of media as the ‘fourth estate’ in a democracy. The Indian media has its Murdochs in every language publication and news channel. While the dominance of one or two media groups in each state and language market has not come in the way of a thousand flowers blooming, it has forced a large number of smaller players to become pawns in the hands of other business persons with deep pockets.

The Niira Radia tapes controversy in India drew attention to some of the unsavoury aspects of a nexus involving professional journalists, owners, politicians and business persons. This is only the tip of the iceberg. In various Indian states, the situation is worse with many Indian language media groups. The number of powerful politicians and business persons owning and openly controlling as well as manipulating the media is on the increase. The controversy surrounding former Union Minister Dayanidhi Maran is an example of the media baron-politician-business person nexus. The Murdoch murk in Britain is a reminder of what could happen in India in the absence of regulation, rules of the game and codes of conduct aimed at preventing such unfair professional and business practices.

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