The Cabinet remained divided on a proposal to have private sports broadcasters share live content with public broadcaster Prasar Bharati. As a result, the Cabinet decided to refer the uplinking policy, of which the proposal is a part, to a group of ministers.
The policy, which is to legitimise foreign portfolio investments in news broadcasters, is expected to come up again for the Cabinet's consideration after the monsoon session of Parliament.
According to sources, the Cabinet was of the view that more discussion was needed on the issue of mandatory sharing of content with Prasar Bharati, as it had severe commercial ramifications on sports broadcasters.
Sources said the information and broadcasting ministry favoured the mandatory sharing, while certain other ministries pointed out the move could lead to serious legal wrangles in the long-run.
The GoM, to be constituted in two-three days, would work out detailed guidelines on the issue and would submit its report to the Cabinet in about two weeks, Information and Broadcasting Minister S Jaipal Reddy told reporters after the Cabinet meeting.
Prasar Bharati and sports broadcasters have got into legal wrangles over the issue in the past. The content-sharing issue first came up when the Indian cricket team toured Pakistan in early 2004.
The spat between Prasar Bharati and Ten Sports, the holder of broadcast rights for the series, was resolved only after the Supreme Court stepped in.
Some of the issues to be considered by the Cabinet will be whether Prasar Bharati will pay the broadcast rights holder and whether the public broadcaster can air its own commercials on a revenue-share basis.
Sports broadcasters say they do not mind sharing content with Prasar Bharati for commercial considerations, but are against the state broadcaster airing its own advertisements.
Pondering points