Digital Shopping : Content is Key

There is a confluence of digital content and commerce. What used to be a search for a product, has converted into a discovery in the shopping behaviour. And a large part of shopping (say almost 40 per cent) happens serendipitously. There is no pre-thinking involved. There is no advertising influence.

Digital content is the main diet of cell phone users. The two main sites visited are YouTube and Facebook. Glance has more users than Instagram. As users spend more time on screens, there has to be brand engagement. These are the days of live and interactive commerce and influencer marketing. There has to be community engagement.

The consumers would like to complete their shopping on the video and through regional language content.

Collaborative Approach to OTTs

TV content is governed by the Cable TV Network Act, 1995 and Cinema by the Cinematograph Act,1952. There are no specific laws to regulate OTT platforms. In general, OTTs follow Article 19(2) of the Constitution which provides for reasonable restrictions on the freedom of expression. There are provisions in the IT Act that can be invoked for objectionable content with powers to block access. The recently suggested Intermediary Guidlines and Ethics Code (February 2021) expects intermediaries to exercise due diligence while showcasing information on OTT platforms. These platforms are already subject to IPC provisions about defamation, deliberate and malicious intent etc. The proposed COTPA Bill of the Ministry of Health has provisions against tobacco advertising and glamorising content on OTT platforms.

So far the the artistic fraternity was elite, big banner, big people affair. OTTs have invited all and sundry and have broken the walls that existed. Entertainment industry employs directly and indirectly lacs of people. Even the audience has changed. Content has to conform to the present day audience, and its geographic location.

None wants micromanagement and excessive regulation of this segment. Provisions of existing laws could be used to lead to self-regulation. There should be collaborative model between the government and industry. Anything that delays the content clearance will sound the death knell for the industry.

Short-video Apps

The average short-video is 15-20 seconds. To finance this app, you require $100000 to $5 million plus. In short-video, tech is very important. The load time should ideally be not over one second. If it hits 3 seconds, the bounce rate is 30-40 per cent. (the rate at which people drop out). You require fast video delivery. There are issues of music licensing. The videos created are mostly of dancing and comedy. The language used is mostly Hindi. Technology and media firms are investing heavily in short-video apps. There are MX Player’s Taka Tak, Zee5’s HiPi, ShareChat’s Moj, Facebook’s Instagram Reel, and Inshorts’ Public.

These apps are great for bonding. India is a country of 700-plus districts. There are creators of short-video all across. If we estimate 100 creators in each district, the total number of creators could be 70,000.

National Digital Currency

China has introduced on a trial basis its own digital currency — eCNY or electronic Chinese Yuan. It is one attempt by Central Banks out of several in the last 12 months. The qualities of digital currencies are different. Digital currencies backed by government give a financial grip. It can have an expiry date. It is easier for governments to track transactions. Almost 60 countries have experimented with digital currency. Sweden has tried digital Krona and the Bahamas, the Sand Dollar. Though the US has moved slowly on this, it is likely to come out with state-backed digital currency. Perhaps, the Chinese digital currency will be extensively used at the 2022 Olympic. It could usher in a new financial system.

In short, digital currency from respective central banks is a defensive response to keep the fiat currency relevant. As cross-border movements of digital currency is faster, it would be easier for Yuan to compete with the dollar.

It will enable the government to monitor the flows of finance.

Big Brother Indian State

The rules framed for online media, e-news channels and OTTs put restrictions on freedom of expression and dissemination of information. The government has assumed wide ranging discretionary powers to vet the content on social media and to take punitive action. The messengers too will be compelled to break the encryption . The grievance address mechanism will shoot up costs. Digital news sites and OTTs will be under a three-tier structure to regulate them. The Inter Departmental Committee (IDC) of government is the final tier.

The time to take down content has been reduced from 48 hours to 36 hours. The digital platforms would have to comply with a Code of Ethics framed by the Press Council or Code under Cable TV Network Regulation Act. It contains negative list of issues pertaining to sex and violence. An aggrieved person submits grievance to the mechanism established. Literally, it is open field. There is a compliance officer and nodal officer to interface with the law enforcement agencies. On being dissatisfied, the aggrieved party approaches the self regulating body and then to an oversight mechanism. There could be endless harassment.

Messangers have to identify the originator of the message violating the code. It is in response to judicial orders or government order.

It could lead to environment where the government has an unfettered freedom to shut down content.

There are issues of fake news on digital channels. Powers that be put their own spin on the digital media. It is necessary to look into this. However, these guidelines go far too much. There could be selective application too as there is lot of discretion available.

Fashion and Technology

Technology has been used by fashion designers and fashion houses to reach the customers. They use online catalogues of their products. Artificial Intelligence (AI) and data science is used to understand sizes, silhouettes and style. AI can recommend personalised style. Software collects the consumer data — preferences, likes, dislikes, colours , budget, body statistics, sleeve length, material and other such things. There are matchmaking algorithms to find relevant product for the customers. The stylist helps the computer to understand what is in trend. There is data on Indian body type to develop the sizing algorithm to give the best fit to the client. Most fashion houses have an omnichannel approach to bring together online and offline shopping experience. Fashion gets democratised on their platform.

There are image-search features on the web-site. Sites use 3D and augmented reality too. They are working on virtual trial rooms too.

Future of Bitcoin

According to Elain Ou, for Bitcoin to acquire the legitimacy of sovereign currency, it has to be a part of the balance sheets of a lot of companies, and be stable pricewise.

Bitcoin addresses are controlled by cryptocurrency exchanges. Most of the users of Bitcoin let the third parties take the custody of their assets. This very fact frustrates its claim of being a decentralised currency. By design, Bitcoin placed less reliance on the fallible human organisations. Each user ran its own copy of software. The tractions were independently verified. The network was kept secure. Corporate treasuries are a different ball game. Bitcoin is a bearer instrument. Users are likely to lose the investment.

Bitcoins are not in physical form, not even in digital form. These are accounting book following a protocol. All participants follow the same protocol. However, this is theoretical. In practice , there could be tinkering with the protocol.

Acceptance is a sine qua non for money. It can be dictated by law. Bitcoin acquire legitimacy by the willingness to accept it in exchange for goods and services.

Bitcoin Trust in 2017 proposed a change to the core protocol that would double the number of transactions recorded per minute on the blockchain. This may split the network, leaving two independent cryptocurrencies claiming identity as Bitcoin. It was resisted by the trade. The modification was given up.

Over and above, Musk’s investment in Bitcoin, what has worked in fewair of Bitcoin is his willingness to exchange the currency for Tesla cars. BNY Mellon is ready to provide infrastructure for Bitcoin for cryptocurrencies. Visa and Mastercard too have joined.

Institutional adoption is a sign of the maturity of Bitcoin.

Copyright (Amendment) Act, 2012

The Copyright Act, 1957 was amended in 2012 to give writers and lyricists a leverage in industry heavily biased in favour of producers and stars. The Act makes contractual agreements mandatory. It assures the writer royalties when the work is showcased outside a cinema hall. The royalty is collected by the copyright society. It is managed jointly by the writers and producers. Though after a long delay, a society has been formed, its registration is still pending with the Registrar of Copyright. He has invited objections and suggestions from the stake holders.

As per the amended law, a writer cannot sign off his royalty rights. As the writer is the first owner of the work, assigning ownership does not take away the author’s right to royalty as the first owner. The producer now gets 50 per cent of the royalty and the remainder will be divided among writers.

The law assures a royalty to the writer when the work is showcased outside the cinema hall.

The right to royalty remains with the writer as long as he/she is a live, and with his/her family 60 years after his/her death.

After registration, the society will propose the percentages in the story, screenplay and dialogue categories.

Indian Professionals and Crypto Payments

According to the Economic Times dt. March, 2021, international crypto companies recruit engineers and back-end developers in India as contractors. This man power is paid in cryptocurrencies. In India cryptocurrency status is still a grey area, neither legal or illegal. Remuneration in cryptos facilitate cross-border transfers, and cost less than bank transfers. Manpower has the option to receive the compensation fully in cryptos or in part cryptos and in part fiat currencies. Crypto transactions could be violating the Foreign Exchange Management Act (FEMA). There is confusion about the nature of cryptos — whether a currency, a product or both. RBI expects remuneration to be in a currency recognised by it.

Regulation for Social Media and OTTs

The Government has come out with certain regulations for the social media, e-news platforms and OTTs. It is called Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules. Let us see the brief the gist of these regulations.

Publishers of news and current affairs content and publishers of online curated content must provide the I&B ministry about how and where they publish, the nature of content they release, the size of the subscription base within 30 days of publication of rules, or in 30 days from the start of their India operations.

E-news must publish monthly compliance report containing the grievances received and action taken.

There would be a three-tier grivance redressal mechanism. The complaint is received against the content. An acknowledgement is issued to the complainant within 24 hours. There is a decision in 15 days. In the three-tier mechanism, there is regulation by publishers, regulation by the body of publishers and lastly an oversight mechanism by the Centre.

The grievance mechanism is applicable to news media as well as other digital media. The self-regulating body would be headed by a retired judge of either a high court or supreme court or an eminent person in the field. The government-appointed oversight mechanism and an Inter Departmental Committee (IDS) would consist of the representatives of various ministries, empowerd to seek hearings on violation of code of ethics.

The joint secretary level or senior officer will be authorised to direct the blocking of content. There would be removal of content on the direction of court.

Digital media outlets must follow the code of ethics laid down under the Press Council of India and Cable and TV Regulation Act.

OTTs will have to categorise content into five age-based categories.

Social media platforms need to disclose first originator of mischievous messages which may lead to law and order problem.

The government calls it light touch regulations.

As the oversight mechanism is sought to be created through rules and not to by legislative backing, it is to be seen how far it is constitutional or within the ambit of law.

Disclosure of the originator of the message requires the breaking of encryption. It is going to difficult for the messengers to do this.

Platforms are asked to take into consideration India’s multi-racial and multi-religious context and exercise caution.

There seems to be clubbing of streaming content, social media and digital media — all under one umbrella. News on digital media from established TV channels and print media already comply with legislations, code and do self-regulation. It is social media that is fully unfettered. Rules are subordinate regulations However, these cannot be sweeping. Oversight authority could be used to arm-twist by the State and there could be a deluge of trolling on select media. The government must focus on a robust data protection legislation to regulate social media content. And news platforms must not be clubbed with social media.

In the redressal mechanism at the third tier, the publishers can be asked by an IDC to remove the content even before a judicial process declares it fake or otherwise damaging. The prescribed content can range from defamatory to threatening public order or violating decency or morality. Here there are chances of abuse.

SC had dismissed a petition against a request to ban a film on grounds of nudity and vulgarity. It said that the film should not be watched. These are the matters of art and entertainment. It had championed the artistic and creative freedom. Currently, SC expects the government to monitor OTT platforms. It is a decision the users take — to stream or not to stream. It constitutes a decision in privacy. It becomes moral policing. SC has suggested legislation, as the Code lacks teeth. The government has informed SC that the guidelines are the rules formed under the IT Act which has sections 67, 67A and 67B dealing with pornography and obscenity. There is punishment ranging from 3-5 years and additional fines can be imposed. The government feels there is no need to bring any new legislation.