The Indian media and entertainment industry is experiencing significant transformations as it navigates industry consolidation, technological advancements, and evolving regulatory frameworks. 2024 is emerging as a pivotal year, particularly with robust growth recorded in the sector. According to a report by EY, the Indian media and entertainment sector grew over 8% in 2023, culminating in a valuation of INR 2.32 trillion. Moreover, during 2024, the technology, media, and telecommunications sector alone accounted for 30% of all mergers and acquisitions in India, with total deal values reaching approximately USD 16.8 billion.
A notable merger in this landscape is the joint venture between Reliance Industries and Star India, valued at USD 8.5 billion. This strategic alignment is anticipated to create a formidable media powerhouse by combining premium content, sports programming, and a comprehensive distribution network. However, not all proposed alliances are coming to fruition; the Sony-Zee merger, which had the potential to create significant competition against the Reliance-Disney alliance, has recently fallen through.
The regulatory environment surrounding the industry is also evolving. The Bombay High Court recently invalidated a provision within the Information Technology Intermediary Guidelines and Digital Media Ethics Code Rules of 2021, which enabled government oversight through Fact Check Units that identified ‘fake and false’ information across digital platforms. Nevertheless, the Central Government has underscored the necessity for reinforcing laws that govern social media and Over-The-Top (OTT) platforms, especially given the cultural sensitivities present in India.
Additionally, the advertising sector has witnessed substantial regulatory changes. The Supreme Court of India highlighted the need for stricter enforcement against misleading advertising, particularly within health-related claims. In response to these developments, the Ministry of Information and Broadcasting has mandated advertisers in the food and health sectors to submit annual self-declarations verifying compliance with existing laws and guidelines. Other regulatory concerns have included addressing misleading claims related to sustainability, known as greenwashing, and promises of success rates in the coaching sector.
The Telecom Regulatory Authority of India (TRAI) has proposed a unified authorisation framework for broadcasting services. This new structure intends to streamline licensing and regulations for various platforms, including Direct-to-Home (DTH), Headend-In-The-Sky (HITS), Internet Protocol television (IPTV), and radio broadcasting.
As artificial intelligence (AI) becomes increasingly relevant within this sector, the Ministry of Electronics and Information Technology (MEITY) has issued cautionary advisories to platforms. These advisories stress the importance of ensuring that AI deployment does not facilitate unlawful activities or propagate bias and misinformation. Efforts to counter deepfake technology and misinformation are being intensified; platforms are now required to embed unique identifiers within synthetic content to denote its nature.
Emerging legal disputes often centre on the use of AI-generated celebrity attributes, prompting the Delhi High Court to direct MEITY to investigate the implications of deepfake technologies. This scrutiny indicates a growing recognition of the potential challenges posed by AI.
Looking ahead, the regulatory emphasis appears set to strike a balance between consumer protection and fostering ease of doing business within India's rapidly expanding media and entertainment ecosystem. As the sector adapts to technological advancements, impending regulations on the governance of AI are expected to be introduced, although the approach is anticipated to favour innovation and self-regulation.
Furthermore, the provisions of the Digital Personal Data Protection Act, enacted in 2023, are due to be implemented shortly, which will provide clarity for digital platforms regarding the handling of user data. With ongoing discussions around restricting social media access for minors, similar regulatory changes may be anticipated in India as part of a broader overhaul in digital governance.
As the media industry continues to develop, driven by digital transformation, enhanced internet access, and changing consumer tastes, it is poised to be a key element in shaping India's cultural narrative. Stakeholders and regulators alike are urged to engage in dialogue as the sector's growth attracts both domestic and international investors, underscoring the importance of a collaborative approach in navigating the future.
Source: Noah Wire Services