Whether The Existing Laws For Regulating The Integration Of Media Industry Is Sufficient?

Media is a means of communication through which we can connect and share the information with thousands of people at one time. It describes the variety of ways through which we communicate in a society. For example- Radio, television, internet, social platforms are some sources of medium through which we communicate. Integration of Media Industry is the unification of different media formats, outlets, and different channels that media companies use for sharing the content with audiences. Horizontal and Vertical integration are two different types of strategies that helps the owners in expanding their business in different sectors of Media Industry. Vertical Integration is an amalgamation in which a company or person owns various businesses in the same chain of Production and distribution while Horizontal integration means merging with the different competitors. Both type of integration leads to a situation where a single corporate entity becomes an owner of various media channels. In this market structure, the seller faces no opposition as he becomes the sole owner of the different outlets with no close competitors as only few people have the exclusive control over different companies. Thus, the integration of Media Industry narrows down the control of all media channels by few corporations. It can be concluded that integration of media is leading to a situation where few individuals are handling various media companies.

In India, the media market is totally different from other countries. Currently, India is a developing country, and all segments of the media industry is fragmented and still growing because of the different number of languages used by people of different states. Media as a market entity contains both vertical and horizontal ownership in both the production and distribution of services. In India, the media industry has seen immense growth as the number of channels for information related to current affairs, entertainment and sports has increased but control of these channels still lies with a countable number of entities. India is having one of the largest and growing media markets in the world. The large, powerful and wealthy people have the ownership in this market as there have been no restrictions regarding the ownership in the set of rules and regulations laid down by the concerned authorities. The ownership of media states that only handful of people owns and control The Indian Media. As per the reports of Ministry of Information and Broadcasting, there are over 550 FM radio stations in the country and 880 satellite TV channels including 380 TV channels broadcasting news and current affairs.

Even the number of news websites working in India is uncountable. There is a vast amount of media outlets because of the diverse culture of India. But this huge media market is controlled by only few. Most of the leading media companies are owned by large corporations that are controlled by some wealthy people who invest in those industries other than media.

The main issue with the ownership of media industry arises because of the regulatory framework. In India there is no specific means to regulate the cross-media ownership, horizontal and vertical Integration. Indian Law does not regulate media concentration. In the past, there has been some legislation by the government in this matter like Indian Telegraph Act, 1885. This act has laid down the ground for a government monopoly over the broadcast sector. But currently there are no specific regulations concerning the Media ownership. After a lot of controversy The Telecom Regulatory Authority of India (TRAI) has given some rules, regulations and recommendation on the ownership of companies. Basically, the authority for granting permissions and monitoring content of broadcasters is lying with the Information and broadcasting Ministry and the authority to regulate the print media is vested with the Press council of India.

In the absence of overarching regulation on Media, regulatory bodies like Broadcast Audience Research Council, News Broadcasters Association and Indian Broadcasting Foundation set the rules and regulate the television market without a mandate to control the ownership of the media. Some of the leading media outlets are controlled by the individuals having political ties. Even the prescribed set of rules and regulations do not seem to be properly implemented.

It can be seen that media plays a crucial role as a medium of communication-News, entertainment and sports information are available to everybody at any time. The information provided by these channels are very significant as a single misleading information can mold the public opinion regarding everything. It becomes important to know the source and intention of the news one reads. Different media groups provide diverse opinions. Thus, it becomes necessary to rely on only those media sources that are reliable and provide true content to its user without any malafide intention. Media is a powerful industry and under any wrong influence, it can harm a society at large. That is why it becomes necessary to regulate the media integration.

Author: Sakshi Sharma