Top Story

e4m_logo.png

Home >> International >> Article

Walt Disney proposal differed by 2 weeks

23-November-2001
Font Size   16
Walt Disney proposal differed by 2 weeks

Walt Disney’s proposal to set up a wholly owned subsidiary in India for operating its pay channel has been deferred by two weeks by the Foreign Investment Promotion Board (FIPB). According to industry sources, ministry of information and broadcasting as well as the department of industrial policy and promotion (DIPP) is examining the proposal.

Disney has proposed to set up the new subsidiary for its pay channel (TWC) while it has an existing joint venture with the KK Modi group for distributing Disney television software to other free-to-air channels. The Modis have opposed the proposal.

As per a policy guideline (popularly known as Press Note 18), a foreign firm is not permitted to set up a separate subsidiary if it has an existing joint venture in the same line of business.

In case the JV has been terminated, there has to be a cooling off period of at least six months.

On previous occasions, the Indian joint venture partners have been asked to give no-objection certificates when their foreign collaborators wanted to set up another subsidiary.

In Disney's case too, the KK Modi group has an existing joint venture. In its application to the government, Walt Disney has claimed that the Disney group has signed a non-binding MoU with the Modi group.

Since the project was not feasible, it has decided not to proceed with the project and that neither party will have any claims against the others if the project did not proceed.

Walt Disney also intends to launch TDC as a pay channel. So the proposed activity does not clash with the existing activities of the JV with the Modis which has a license to distribute Disney programmes on free-to-air TV until late 2002.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

WhatClicks promises to be an unbiased, objective, third-party audit firm that will work with advertisers and agencies alike to help build an effective and integrated digital strategy.

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video