News Broadcasting
US-based FCC seeks to open up FDI norms for broadcasting
MUMBAI: Are the winds of change blowing in probably what is the most hypercompetitive and protected media market in the world after China? It looks likely that they are.
The US Federal Communications Commission announced over the weekend that it is considering relaxing foreign investment norms in broadcast TV and radio stations in the US. Current norms restrict foreign holdings in companies holding broadcast licences at 25 per cent.
The FCC is scheduled to have an open discussion on this when it meets on 14 November under Acting Chairwoman Mignon Clyburn. Clayburn says once its proposal is approved, the FCC will take decisions on proposals on a case by case basis. An official statement quoted her saying: “I circulated a declaratory ruling that clears the way for increased access to capital and potential new investors for the broadcast sector. Approval of this item will clarify the Commission’s intention to review, on a case-by-case basis, proposed transactions that would exceed the 25 per cent benchmark that restricts foreign ownership in companies holding broadcast licenses.”
FCC Commissioner Ajit Pai added while speaking to a wire service that there is a great disparity in the fact that foreign companies can indirectly invest more than 25 per cent in wireless telecom, internet, cable TV ventures while draconian restrictions continue to hamper the flow of capital in the US broadcast sector which is going through turbulent times.
The proposal has been welcomed by many in the broadcast sector including the National Association of Broadcasters and The Minority Media and Telecommunications Council (MMTC), which has in the past stated that the rules framed in 1912 need to be changed.
In a statement, MMTC explained its advocacy for the measure: “MMTC, along with over 50 national civil rights, intergovernmental, entrepreneur, and professional groups, has petitioned the Commission to amend the rules for eight years. The organisations have cited the lack of domestic investment in diverse radio stations and the relief foreign investment capital would provide to American broadcasters, especially minority entrepreneurs. The move would also facilitate American broadcasters’ reciprocal entry into diverse overseas markets hungry for African-American, Hispanic-American, and Asian-American music and culture.”
It may be recalled that News Corp boss Rupert Murdoch had to become an American citizen and give up his Australian citizenship in September 1985 in order to buy a network of independent television stations. He went to buy 50 per cent of 20th Century Fox Film Corp. (21st Century Fox) and had plans to purchase Metromedia, the nation’s largest group of independent television stations, including KTTV in Los Angeles.
The change in thinking brings to mind the fact that TRAI has been recommending a freeing up of foreign investment norms in cable TV, television – news and current affairs channel (in the uplinking guidelines may be increased from 26 per cent to 49 per cent through the FIPB route), radio (the FDI limits may be enhanced from 26 per cent to 49 per cent through FIPB route for the FM radio sector), DTH, and putting it on par with telecom. Hopefully, there will finally be some movement in that direction.
We don’t know if Indian firms are smelling opportunity, but it well could be. Zee TV already owns a wellness TV service in the US under the brand of Veria and several other Indian broadcasters have launched versions of their Indian channels and delivered them to south Asian diaspora via satellite in the US. Sure, it will provide India’s going-global media firms a chance to put in investments and acquire broadcasting firms – even though they may be local TV stations – in the US. Yes, it will take big money, but for the risk takers the rewards will be big too when they work out.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
