FDI In Media Industry— Procedures, Fees And Documents Required

Up to 100% FDI is permitted through an automatic route in the Media industry.

These include:

• Teleports
• DTH
• Multi-system operator
• Cable networks in DAS areas
• Mobile TV
• Headend in the sky broadcasting services

100% FDI is permitted through a government route in the Media and entertainment industry.

These include:

• Publishing/ printing of scientific and technical magazines
• Publishing/ Printing of specialty journals/periodicals

Many documents are required for FDI in the media industry which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

There are conditions tapping for the procedure of FDI approval which must be understood by investors.

The key advantages for investors in India under Media industry are as follows:

1. Robust demand - By 2027, the nation's entertainment and media sector is predicted to generate US$ 73.6 billion in revenue, growing at a rate of 9.7% a year. A survey released by IAMAI and Kantar Research projects that the number of internet users in India will increase from approximately 622 million in 2020 to 900 million by 2025, growing at a compound annual growth rate (CAGR) of 45%.
2. Higher Investments - The rapid rise of OTT channels, the greater emphasis on animated intellectual property (IP) content, and studios' higher spending in VFX have created opportunities for animation and VFX studios in both local and international markets. From April 2000 to September 2023, foreign direct investment (FDI) inflows into the information and broadcasting industry (including print media) totaled US$ 10.87 billion.
3. Policy support - The government declared in November 2021 that it is aiming to establish a National Centre of Excellence for AVGC, or animation, visual effects, gaming, and comics.
4. Attractive opportunities - The revenue of the video over-the-top (OTT) Indian market, which is controlled by companies like Disney On Hotstar, Netflix, and Amazon Prime Video, is expected to double from US$ 1.8 billion in 2022 to US$ 3.5 billion by 2027. According to a FICCI-EY report, within the M&E sector, TV is expected to remain the largest segment and likely to post a CAGR of 7% to Rs. 847 billion (US$ 12.01 billion) by 2023.

1. Exposure to upgradation of equipments - FDI in the media and entertainment (M&E) industry is beneficial for the producer of the host country, improves the design and content for providing engaging content to large demographics.
2. Global recognition - High-quality graphics according to the brilliant content spread the words beyond the national territory which shall bring a global recognition in the global media market. It is very important to empower the quality content and broadcast it worldwide.
3. Strategic collaborations - The ignition of strategic collaboration between domestic and international countries pushed the media industry forward to generate an open variety of horizons for accessing organized presentation of content in the media.
4. Flexible profitability - Mass and media entertainment is the most profitable revenue sector among all the sectors present in the economy because of its peculiar production that is different from other consumables goods. So investing in this sector is beneficial for the investors to create new forms of content which hasn't even been shown before.

FDI in the media and entertainment industry is the most profitable segment in the global market, generating about trillion of capital in one investment. The company at present times tends to sell their quality products through quick, dynamic and cheap forms of advertising which causes them to push their products across a number of territories. Engaging content, long lasting graphics and compelling sound effects. For this, various schemes, reforms and initiatives have been formulated to make the startup media revolution.

Several other factors to consider for investors while investing in mass media industries are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.

Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.