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New Rules Could Hit Indian Media Firms

Indian media firms could see changes to broadcasting rules, limiting cross-holdings and consolidation in the world's third-largest cable TV market, reports Theedgedaily.com. A bill, likely to be delayed as broadcasters lobby for changes, would set limits on scale and expansion and bring the $3.6-billion business under one regulator. It would also cap a company's ownership in another broadcaster, distributor or cable operator at 20 percent; limit any one group's ownership to 15 percent of all TV channels; and cap the subscriber base in any city, state or country at 15 percent. Right now, broadcasters can own up to 20 percent in a satellite network, but there is no ceiling on ownership in cable. If passed, the legislation would hit News Corp.'s Star, as well as Zee Telefilms Ltd and Sun TV Ltd. "The rules could impact long-term cable consolidation prospects considered by foreign and private equity investors," says Vivek Couto, executive director at Hong Kong-based research firm Media Partners Asia. "It could also prove detrimental to long-term acquisition strategies."

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