There has been a lot of news about the concept of "Paid News" recently; it is best summed up in this latest Paid News for Dummies by Sevanti Ninan in the Hindu. What surprises me, however, is that very little has been said, by the media, about solutions to this 'necessary evil'. There have been references to self regulation and perhaps, an independent regulator. Other than creating post-retiral benefits to a few more bureaucrats, I don't see how just creating yet another regulator will help. And I don't think "learning to live with it" is a solution either.
Based on my telecom industry experience, I propose two "commercial" solutions:
1. Allow International Media / News Companies to Enter India
The Indian media space is crowded by family (or individual) run companies. Even though some of them are listed and/or have international partners, management control vests firmly with the Indian owners. Given the very high entry costs in the space, there is a tendency amongst new entrants to mimic practices that have been made popular by the incumbents... nobody has really shaken up the market. Increasing the level of competition - with the entry of global players, with their scale, content and practices - may put some pressure on the rest of the industry. The Internet has begun to create competitive pressure, enabling alternative points of view and the questioning of media "holy cows". We just need more, independent and well-funded competitors.
2. Strengthen the Govt.-owned Incumbent
Strange as it might sound, a strong Government-owned competitor is not such a bad thing. For years, in the telecom space, BSNL and MTNL determined the price-points in the market place and kept everyone else in check. Now that the market is mature, the private operators are stronger and bigger than the incumbents. To some extent, this was true even in the airline industry. It is another matter that in both cases, the incumbents were not given sufficient independence to grow to their rightful position. A well-managed, public-sector player can often keep the industry (and new entrants) in check: take banking for instance. The Government would do well to let Prasar Bharti (Doordarshan) become a more meaningful player in the media space by bringing in professional management and perhaps, listing the corporation.
A strong playing field that includes global majors and a strong public-sector incumbent is perhaps the best model for most of our industries: media, telecom, banking, insurance, airlines, etc. Regulation can then help set the rules and boundaries of engagement.