m A Subsector of communication services under GATS in WTO

Audiovisual services sector covers:

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m dastest growing sector

m Indian audio-visual and entertainment industry is largely

unorganized and concentrated in private hands.

m Offers a wider choice of services to the consumer

m A large part of the audio-visual sector has been

privatized, government incentives are mainly in the
forms of tax exemptions/concessions
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m iracy - affects all segments of the industry from
film production to music to live entertainment.

m ëigh entertainment tax- ranges from 14 to 167

per cent

m No proper infrastructural facilities for

E-commerce

m Advertisement spending
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m Television broadcasting quotas- regulates indian content in other
countries

m Many developed countries for example, the EU, Canada and

Australia heavily subsidies their domestic industry.

m Restrictions on audio-visual services which are specific to

contents of Indian origin.

m lack of information regarding the demographic and

psychographic profiles of viewers.

m Difficulty in Distribution Chain

m Restrictions on co-production

m lack of availability of screens/theatres-

expensive and are not easily available for screening foreign movies

m Several restrictions inhibiting the inter-country

movement of persons
 AUDIOVISUAL SERVICES AND TëEIR SUBCATEGORIES IN TëE
GATS

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CPC 96111 Promotion or advertising services
CPC 96112 Motion picture or videotape
production services
CPC 96113 Motion picture or videotape
distribution services
CPC 96114 Other services

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CPC 96121 Motion picture projection services

CPC 96122 Videotape projection services
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CPC 96131 Radio services
CPC 96132 Television services
CPC 96133 Combined program making and
broadcasting services

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CPC 75241 Television broadcast transmission
services
CPC 75242 Radio broadcast transmission
services
 India·s Commitments in Audio-
Audio-visual Services

Õ
Õ

 Limitations on Limitations on
Market Access national treatment

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1) Unbound 1) Unbound
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2) Unbound
3) i) Only through
representative offices which
will be allowed to function as
branches of companies
incorporated outside India
ii) Import of titles restricted to
100 per year
4) Unbound except as
indicated in the horizontal
section
2) Unbound
3) Subject to the prescribed
authority having certified that
the motion picture has:
a) won an award in any of the
international film festivals
notified by the Ministry of
Information & Broadcasting,
Government of India; or
b) participated in any of the
official sections of the notified
international film festivals; or
c) received good reviews in
prestigious film journals notified
by the Ministry of Information
& Broadcasting, Government of
India.
4) Unbound except as indicated
in the horizontal section
 India·s MFN Exemptions in Audio-
Audio-visual Services

Sector or sub- Description of Countries to Intended Conditions

sector measure indicating which the duration creating the
its inconsistency measure need for the
with Article II applies exemption

Measures which define All countries Indefinite The agreements

Audiovisual norms for co- aim at the
Services production of motion promotion of
pictures and television cultural exchange.
programmes with
foreign countries and
grant national
treatment to motion
pictures and television
programmes co-
produced with foreign
countries which
maintain a co-
production agreement
with India
THE AUDIOVISUAL SERVICES SECTOR IN
THE GATS NEGOTIATIONS

m Content Regulations
m doreign Ownership and Control
Restrictions.
m Tax Incentives and Government Subsidies
Negotiation roposals
- Make specific commitments in audiovisual services and, in
doing so, give special attention to audiovisual services in
which developing countries have great export potential (e.g.,
television services).

- Initiate a debate on subsidy schemes aimed at achieving

national policy objectives of promotion and preservation of
cultural identity and diversity.

- Initiate a debate in the framework of the GATS 2000 on trade

defense and competition provisions to address unfair trade
practices and restrictive business practices in the audiovisual
services sector.
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m An important and influential medium for cultural
expression and hence, trade in this sector is often
heavily regulated for preservation of the cultural
identity and social values.

m Increased globalization it is becoming difficult for the

local producers to compete with imports from global
players such as the US and it has, in turn, threatened the
viability of local production companies.
Y
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m Minimum quotas for domestic programmes/Local
content requirements

m Other production, distribution and broadcast

regulations

m doreign ownership/investment restrictions

m Cross-media ownership restrictions and cross-

sectoral ownership restrictions
m Duties, taxes and levies

m Support programme, Tax concessions, subsidies,

etc.

m Lack of intellectual property protection

m E-commerce restrictions
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