Updated: Sep 2
INTRODUCTION AND OVERVIEW
1. When we think of the media and entertainment industry, films, print, radio, and television shows, music, newspapers, magazines and books usually come in our minds.
Few of the top media and entertainment companies in India are PVR Cinemas, Inox, Zee Entertainment Enterprises Ltd., Sun TV, TV18, Hathway.
2. The radio and television broadcasting industry are composed of two different types of companies. There are public service broadcasters, where the subsidy is through public money, and commercial broadcasters, which are funded through advertisement spots. Radio and television broadcasters create and/or acquire content for broadcasting, such as entertainment, news, talk, and other programs which further is chosen by the viewers as per their discretion. Other types of broadcasters include cable and subscription or fee-based programs that have a narrower focus, such as sports, education, and youth-oriented programming.
3. The print industry entails of publishing companies that produce newspapers, magazines, books, journals, and periodicals, their online versions, and directories etc. As the North American Industry Classification Systems described it, “Publishers may publish works originally created by others for which they have obtained the rights and/or works that they have created in-house.” Published works can be usually seen in one or more formats, such as traditional print, eBooks, CD-ROM, or proprietary electronic networks.
4. Gone are the days when we made use of media and entertainment through books, newspapers etc. World has now technologically advanced, and by means of internet we have everything at our fingertips and is available to us through various mediums such as computers, eBooks etc.
5. Amidst the developments in technology, it has challenged all the companies in this field to reach to their customers in an effective manner, looking for a balance between profits and customer satisfaction. They have resorted to several ways to achieve their goals, such as, television networks offer previews and reruns of TV shows on their Web sites, readers can sample small portions of eBooks through Amazon and other booksellers before buying. Newspapers such as the Times of India allow readers to read a certain number of articles online before requiring them to subscribe, and thus it goes on to show that times are changing and so must the approach towards customer satisfaction. However, on the other hand, due to all this, the newspaper distribution in general has dropped in the recent times because of the shift to internet and paperless means of getting information.
6. Moreover, all the free online content has also created opportunities for piracy, because there is always scope for misuse of technology. If someone does not find a show they want to see on a TV or cable network, they may be able to find it online through file-sharing sites and pirate streams.
GENERAL PROBLEMS FACED
There are more other issues that are faced by entrepreneurs while establishing such a type of company or startup. We will discuss a few of the issues in this article, issues like brand protection, taxes and other legal issues. Some of the problems are discussed below:
Advertising plays a major role in any business; it is a means by which customers are attracted to avail the services. It involves coming up with innovative content for the purpose of showcasing the services that one offers. Off late, advertisements are in the form of print as well as digital, thus promising a larger audience. This step is usually carried out very carefully to be rewarded with great customer base.
This is the most advantageous stage, where people will gather for new content and which is only for a limited period of time like (monthly or annually etc.). It binds in a running relationship with the consumers, the subscribers get access to a channel or company or app etc. for the content and for which they have to pay on the running process. And the main point is that the people want something new in the next content because they are not paying the money only for seeing that single content again and again. The content should be refreshed in the running process.
The ownership documents and papers should be in your hand, then only you can make a decision in favor of the startup wherever you need. For every step, when the business grows up, registration is required for trade licenses for employment registrations etc.; for all steps, the document is a must. Investors are also very careful and alert on license issues before they enter into this type of business. So, for the better investment and development of the business, you should take care of the licenses.
If the materials of the companies are not selling at the specified price then the company gets less attraction from people and their revenue also goes down. Therefore, aggregation is a form, where the company can sell their products with a new idea. Here, the idea is to remake the content and mix up with some other similar materials and sell it. And the advantages of this are that there will be a collection of materials which are needed for the people and they don’t have to go anywhere thereafter.
E. Contract enforcement
Once you start your business management member, it’s time to build legal agreements to record your legal relationship with the other members of the venture. You have to find out what agreements are required between you and your co-partner. Then, in the end, you will make a critical agreement to work on the business. Therefore, the relationship between the two main people should be appropriate and healthy so as to avoid any disputes or conflicts during the course of the business.
F. Data protection (piracy, mitigate cyber risks)
Every view download result in a large amount of data being created every day. This data gives to the media and entertainment companies a real budget advantage; therefore, this type of data is an attraction towards the cybercriminals.
The Media & Entertainment startup companies should take some steps to protect their data, which are:
· Identify the priority assets, which is the most important matter to your companies.
· Improve your plans; how to respond to cyber threats.
· Consider the impact of security violation by any third party and think about how to protect the security data of your company.
· Develop a continuous improvement plan, which will enable the management of a constant change of security by effectively and efficiently.
G. Employment and Labor Laws
Doing business in India or even running any type of startup requires several licenses, to protect yourself from falling into any trouble. Some licenses are simple tax registrations and some businesses just need a trade license and establishment registration. For employing more than 10 persons, you have to do various labor and employment-related registrations. If the entrepreneur does not have the licenses of labor law, when you are growing in the field of media and entertainment, the investors of the company will ask you for the proper documents of the licenses before they invest money. This is important to ensure that the employees are given the due respect and protection during the course of their employment, because in the end, if the employers are not satisfied and happy, the efficiency of the business will lack.
H. Taxation Issues
A lot of businesses fail due to this concept, many of the founders face a very huge number of fines, and there is a possibility of imprisonment and criminal cases with regards to tax bills, only due to negligence and unawareness. Every organization in the world, involved in any type of business, has to pay the tax to Central, State and Local Governments. So, if you maintain the taxation section of your business then all members of your business will be benefitted. The taxation laws are especially known to be a tricky thing.
The media and entertainment field are indeed very powerful. However, the execution of the power by the media is always regulated and controlled by various kinds of laws due to the fact that no right can be exercised absolutely, they are always subject to certain restrictions to ensure stability in the public. Having a startup business is a very wonderful idea and skillful. The main thing to remember is that there are many problems to face while building any business. You must care for your future while dealing with legal work for your business. In this democratic society, the media have a great role in the development of the economy of the country. And due to the technological advancements, even though the print media is slightly affected, but a developing nation like India focuses on both medium of entertainment, digital as well as print.
Advocate Himanjali Gautam