iWorld
OTT industry working on compliance with new IT rules
Kolkata: For the last few months, the new regulations introduced for over-the-top platforms at the beginning of this year, has been the talk of the town. As the new rules introduced by the government came into effect on 26 May, the industry is working towards complying with all the rules. However, both the self-regulatory bodies, the newly formed digital segment under Indian Broadcasting Foundation (IBF), Internet and Mobile Association of India (IAMAI ) have asked for additional time, as per industry sources.
On 27 May, the digital media division of the ministry of information and broadcasting (MIB) wrote to the OTT and digital media publishers to furnish all their details and compliance status under Rule 18 of the Information Technology (Intermediary Guidelines and Digital Media Ethics Codes) Rules, 2021 within 15 days.
Soon thereafter, IDBF announced the appointment of Justice (retd.) Vikramjit Sen as chairman, along with six other media and entertainment industry members for its newly formed Digital Media Content Regulatory Council (DMCRC). IAMAI followed suit and announced its self-regulatory body for streaming content companies like Netflix and Amazon Prime Video. The Digital Publisher Content Grievances Council’s (DPCGC) Grievance Redressal Board (GRB) will be chaired by former Supreme Court judge Arjan Kumar Sikri, it announced.
The withdrawal of broadcaster-led OTTs such as Disney+Hotstar, Zee5, SonyLIV from IAMAI has created two lobbies in the industry. International tech and media giants like Netflix, Amazon have stayed with IAMAI, along with tech giant Apple who also joined the body recently. Several independent bodies have also decided to remain under IAMAI.
According to a senior official with a leading OTT, both are in touch with MIB and have asked for additional time. While the ministry may grant some extension, it seems it is not very happy with the fact that “people have been toying around deadlines”, the official added.
“IBF has to work on the registration, including a new name, trademark for its new body, and IAMAI has to work on the formation of its second-tier mechanism. IBF has assured that it would come up with rigid guidelines exactly based on the code of ethics”, he added.
Indiantelevision.com surfed through websites of leading platforms like MX Player, Zee5, SonyLIV, Disney+Hotstar, and found details of the grievance redressal officers identified by the respective platforms. Moreover, most of the leading platforms have already classified age-rating on their shows, some of the platforms have even rated the overall show, still others have rated each episode wise.
According to a Hindustan Times report over 800 OTT platforms including video streaming services such as Netflix and Hotstar, and digital news media outfits, have shared details under the new IT rules. Most of the top OTT players have shared the details including Netflix, Amazon, Jio, the report said, quoting an unnamed MIB official.
The new rules apply to digital news publishers as well. While traditional media companies with digital footprints asked for an exemption. But MIB clarified that it would not grant any relief because making an exception of the nature proposed “will be discriminatory to the digital news publishers who do not have a traditional TV/print platform.”
The News Broadcasters Federation has stated on Friday that all its current members have duly complied with the requirements of the new rules by providing required information of their entities. However, the new rules have been challenged in court by a few digital news media outfits including LiveLaw and The Wire.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
