FICCI Frames, the three-day annual event of the media and entertainment (M&E) industry, kicked off on Tuesday. Bollywood film director and producer Karan Johar, who is also the Chairman of Frames, spoke to Business Line on the growth opportunities, challenges and trends related to the ₹92,800-crore industry.

Edited excerpts:

Despite the economic slowdown, the M&E industry continued to grow. Which sector contributed to the growth? What is the target for this year?

The overall GDP grew under 5 per cent and the M&E industry grew by 12 per cent.

It is lesser than what was projected. Given the state of the economy, we managed well. For sure, these are tough times.

Despite that situation, we managed to grow. That’s a positive.

The digital media and increases in TV subscription revenue are reasons for the growth momentum.

Lok Sabha polls are round the corner and our growth will depend on the mandate. A clear majority Government will signal growth momentum to pick up for the sector.

What is your expectation from the FICCI Frames this year? Was the industry body able to address the issues last year?

FICCI Frames has evolved over the last 15 years. This year, it’s happening at a time when the stakeholders can clearly express the agenda for the future to political parties. Last year, we focused on the ‘power of a billion consumers’. The demand to push the M&E sector to explore new platforms is already there. Our young demographics provided an added advantage to innovate. The time has come to support the industry with right incentives, so that the industry can leverage the rapidly changing technology and continue to upgrade the capabilities of its 10-million-strong workforce.

What are the key challenges and how are you planning to overcome them?

M&E as a sector stands essentially as a catalyst for change. The media has always been the shaper of public opinion and, hence, an influencer of political destinies – the role of free speech and freedom of expression is paramount in order for the media to remain the moral conscience of a multi-cultural democracy.

There are challenges and implementation risks in cable TV digitisation’s further delay in the phase III roll-out. The industry is also waiting for the Phase III FM radio auctioning. The continued low rate of economic growth is a challenge as low growth will only signal poor ad spends. Political uncertainty will dampen the growth of the M&E sector.

We have often heard about films getting stalled due to censorship issues. How is Frames planning to address this problem?

A committee headed by Justice Mukul Mudgal has submitted its recommendations along with a model Bill to replace the existing Cinematograph Act, 1952.

The Ministry of Information & Broadcasting has stressed on the need for a sound legal architecture for promoting cinema as a form of creative expression. We welcome that.

At present, there are multiple entertainment taxes across States. Is there a need to standardise entertainment tax rates?How will the implementation of GST help?

We look forward to the introduction of GST (Goods and Services Tax) and the Direct Tax Code and simplify the existing clutter of taxes and tax administration, thereby, allowing the industry to plan better. The existing tax structure (entertainment tax) should be subsumed under the GST. This tax structures needs to standardise.

What is your view on the service tax on artistes?

Our demand from FICCI is that service tax on artistes is an additional cost on film producers as they have no ability to pass it on to customers – newly introduced tax on artistes in negative list should be deferred up to introduction of GST.

Related Topics
comment COMMENT NOW