The eminent poet, lyricist and film scriptwriter, Mr Javed Akhtar today lauded the efforts of the government and other political parties for passing the much-
needed law securing the right to royalty of writers, lyricists, singers, composers, musicians, directors and other such artistes at an ASSOCHAM event held in New Delhi today.

“The ordinary musicians and writers have been able to convince the government and other political parties about the raw deal they have been given for years and years and thankfully a new law has come that secures their basic right to royalty,” said Mr Akhtar while addressing 7th annual summit on entertainment and media titled ‘Focus 2013: Celebrating 100 years of Indian Cinema,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“I must thank the government and all opposition parties as without them it would not have been passed unanimously like this,” said Mr Akhtar who is also a Member of Parliament.

During his address at the ASSOCHAM Focus 2013, Mr Akhtar came down heavily on entertainment channels who are always cribbing about unjust rules, laws, regulations and restrictions but ruthlessly exploit the artistes. “Since the rules have been notified, most of the channels are dragging their feet and communicating with each other through mails on how to avoid or marginalize the right to royalty and how they can still make contracts which deprive thecontent creators of their justified and legal royalty and this is a very unhealthy atmosphere.”

The famous bollywood film scriptwriter further stressed upon the need for creating a healthy industrial society with a sense of equality and fairness which can only be achieved by changing the basic moral values. “This economic exploitation, discrimination and inequality has to be eliminated.”

On the issue of transformation in content of films, Mr Akhtar said, “Films are now being made for a certain class which stays in metros and the rest of the 75 per cent of India staying in smaller towns and villages don’t matter to certain filmmakers.”

Mr Javed Akhtar along with Mr Aroon Purie, chairman & editor-in-chief, The India Today Group, Mr Rajkumar Dhoot, president, ASSOCHAM, Mr D.S. Rawat, secretary general and Mr Karan Ahluwalia, president and country-head, media & entertainment banking group, Yes Bank released an ASSOCHAM-Yes Bank report titled ‘Scripting Success for the Indian Media & Entertainment Industry.’

During his address at the ASSOCHAM summit, Mr Purie had expressed serious concerns on digitisation of the television (TV) distribution system as there are serious problems which need to be addressed.

“The present system is patently unfair to the broadcaster for whom this whole media and entertainment industry exists,” said Mr Purie.

He further pointed out that only Rs 4,000 crore i.e. just over 16 per cent of the Rs 24,000 crore paid by consumers to the cable operators reaches the broadcaster and out of which Rs 2,000 crore are paid as carriage fees to the multiple system operator (MSO).

“Effectively, broadcasters get a net share of just over eight per cent i.e. Rs 2,000 crore of the total subscription revenue collected from the consumer,” said Mr Purie.

He said that broadcasters are being cheated of their rightful subscription revenue which should be at least 40-50 per cent i.e. about Rs 10,000-12,000 crore of what is paid by consumers. “This would have changed the entire broadcasting industry if the whole cable distribution system had been done fairly and professionally.”

Mr Purie also said that objectives of digitisation like full transparency, correct assessment of subscriber base, controlling the leakage in government’s tax revenue, choice to viewer and paying accordingly, enough inventory to carry all channels, level playing field for various stakeholders, removal of carriage fees and others have still not been implemented. “Benefits of digitisation have not happened and the great Indian Media dream is likely to go sour.”

Giving the viewpoint of news channels he said that subscription model is very important for news channels who are otherwise dependent upon advertisements that are cyclical in nature. “If you want a free and independent news media you need to have subscription income flowing into them.”

Mr Purie also said that government must enact the ‘must carry’ provisions on the operators and postpone restrictions on ad duration for broadcasters.

While quoting the ASSOCHAM-Yes Bank report on media and industry sector, Mr Ahluwalia said, “The Indian Film Industry is currently pegged at Rs 112.4 billion and is expected to grow at a CAGR (compounded annual growth rate) of about 11.5 per cent to touch Rs 193.3 billion by 2017 as the film segment is expected to continue its robust growth on back of growing multiplexes and digiplexes, innovation in production and marketing, regionalisation and digitisation.”

He further said that although India’s television households are second to only China and the United States of America (USA), digital penetration is very low compared to other countries. “Digitisation of cable television is expected to play a huge role in delivering focused content to the consumer.”