Top Story

e4m_logo.png

Home >> International >> Article

Walt Disney proposal differed by 2 weeks

23-November-2001
Font Size   16
Share
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

Baba Ramdev brought his sharp wits for an interview with e4m where he promised to disrupt more markets and spoke about he the way he created a brand through consistent and selfless work

GroupM is in talks with several digital clients currently with its other agencies to shift them to Essence, which is looking at a major expansion plan in 2018

Thomas, Chief Marketing Officer, Diageo India, gives us a peek into the marketing strategy for McDowell’s No 1 Soda, its creation of ‘No 1 Yaari Jam,’ their own set of 4Ps and importance of content

NewsCode, a hyper local online news platform was launched last night with a network of over 350 local reporters in Karnataka and Jharkhand. Apurv Swarup, the co-founder talked to Exchange4Media about his vision

Voot, which is producing almost 4X content on an overall basis on the reality drama, is gunning for big numbers both on viewership and advertising revenue

YouTube today released its annual year-end edition of the YouTube Ads Leaderboard 2017 capturing the most celebrated ads that received maximum views, shares, and love from audiences across India

Real world study of Appier's network shows significant benefits of AI over traditional rule-based systems