The Indian Broadcasting Federation (IBF) has said nyet to state-owned broadcaster DD‘s DTH proposal. DD had proposed that it would own 20 per cent in a DTH venture with the remainder being given to non-broadcasters.Broadcasters would be called to partner it as content providers.

DD chief R. R. Shah met up with private broacasters who are members of the IBF on 13 November. The members apparently did not evince much interest in the proposal and instead asked that the government issue a clarification on the issue of the cap on equity for broadcasters and cable TV operators in a DTH operation.

Private broadcasters have not been happy with information and broadcasting minister Sushma Swaraj‘s statement that the limit on total broadcasting investment in a DTH project‘s equity is 20 per cent. They have been pushing for this to be an individual broadcaster‘s investment so that two or three of them can get together to form a DTH coalition.

When the DTH notification was issued by the information & broadcasting (I&B) ministry this week, it was not clear whether the 20 per cent restriction was the maximum a single media company could invest or whether the figure applied to the investment a bunch of media companies could put into a DTH operation.
Yesterday, I&B minister Sushma Swaraj clarified the issue. Speaking to The Economic Times she said that 20 per cent applies to the entire investment that either a group of broadcasters or cable TV operators can pump into a DTH venture. If the minister has not been misquoted, then the announcement should spike any enthusiasm that Zee TV and C. Sivasankaran‘s Sterling group had about becoming DTH bedmates. It could well spell the death knell of DTH in India.

Unless, of course there are some enthusiastic entrepreneurs willing to diversify and risk their all behind what could prove to be a long-gestation venture.