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Tag: Roland Landers

  • …notes an EY-All India Gaming Federation report

    Indian online gaming biz may reach $2bn by 2023…

     

    By Our Staff

     

    The Indian online gaming sector reached US$1.027 billion in 2020, a growth of ~17.3% from US$543 million in 2016. With its current trajectory, it is expected to reach US$2 billion by 2023 in terms of rake fees earned, states the just-released EY- All India Gaming Federation (AIGF) report ‘Online gaming in India – The GST conundrum.’ While India is currently the fourth largest online gaming market globally, the industry requires a robust regulatory and legal environment to help the business scale quickly and achieve its true potential. The report highlights global best practices for taxation and provides much-needed clarity on aspects related to valuation and applicable GST rates.

     

    Online gamers in India are estimated to grow from 360 million in 2020 to 510 million in 2022. Additionally, there are over 400 gaming start-ups at present that are accelerating the growth of the sector. However, in India, the classification of whether a game comprises a ‘game of skill’ or a ‘game of chance’ has wide consequences for legal implications on the business operations. A game of chance attracts a higher GST rate of tax vis-à-vis a game of skill. Online games operate either on the ‘rake fee’ model wherein the gaming platform charges a rake fee for facilitating games or ‘freemium’ models wherein the gameplay is free but additional features may require users to purchase specific items for a monetary price. A rational imposition of Goods and Services Tax (‘GST’) is therefore vital for sustaining this industry.

     

    Said Bipin Sapra, Partner – Indirect Tax, EY India: “The online gaming industry is growing at an impressive CAGR of over 20% and holds significant potential for economic growth, job creation and contribution to the Government’s vision of a trillion dollar digital economy by 2025. To enable the industry in realising its peak growth potential, it is imperative that the GST regime for online gaming industry is kept rational and at par with other technology platforms. Adopting globally consistent standards in our tax treatment of the industry will enable it to achieve its true potential.”

     

    Added Roland Landers, CEO, All India Gaming Federation (and former Chief Brand Officer at Zee and Head of Zee Sports): “The valuation disputes under GST law have been a dampener to the industry. Considering the market size and future growth projections, the online gaming industry is expected to be a significant contributor to the government’s vision and provide future economic avenues considering the ubiquitous digital trends impacting our lifestyle. It is important to highlight that regressive taxation of these emerging sectors may only make the business unsustainable in India. Our recommendation is that the Tax authorities should align its policies with internationally accepted principles of taxing the online gaming sector and provide certainty to the industry. We hope that this report would provide meaningful insights and help accord focus to this sunrise industry.”

     

    To realise the full potential of online gaming industry, adds the communique, a levy of standard GST/VAT rates is recommended, to be treated on par with any other segments of the economy.

     

    The valuation mechanism in levying GST on the entire stake value vis-à-vis the rake fee element should be clearly outlined to avoid any ambiguities and potential litigations leading to tax demands. Any uncertainty and possibilities of litigation adversely impacts the business plans, operations, and entry of new players in the industry. Most industry players have a rake fee in the range of 4% – 20%. Any attempt to levy GST on the entire stake value potentially leads to economic unviability of the business model and could force the closure of businesses.

     

    The report outlines three options:

    (i) GST on rake fee value: Thissuggests a levy of GST only on the rake fee i.e. consideration received by the gaming platform. It is presently being followed across the industry and is in alignment with existing GST mechanism to levy tax on consideration only.

     

    (ii) Deemed credit model: This has only two data metrics to be considered – stake and pay-outs. This mechanism makes it easier for the Government to verify and audit entities. However, businesses would be required to undertake a change in their ERP systems to compute GST.

     

    (iii) GST on entire stake value but at a nominal rate of say 1.8%: Thisis simpler to calculate as it has only one data metric to be tracked by business i.e. stake value. However, the mechanism would be discriminatory for industry players having low rake since GST outflow would be high whereas margins are lower. This method is also prone to manipulation where ‘platform fee only’ players without any prize-winning model may offer nominal winnings to lower tax outflow.

     

    Given the online gaming industry acts as a technology enabler and facilitates gameplays through a web platform similar to software companies’ products, the report recommends a GST rate of 18% to be levied to mitigate any risks of misclassification of the online gaming industry as betting or gambling. The tax rate should not exceed 20% as it could result in the gaming operators as well as consumers entering the grey market.

     

    Singapore, South Africa and Australia follow the deemed credit model mechanism making it easier to verify and audit the entities. The model is in line with judicial decisions and also takes care of anticipated risk around the misdeclaration of rake fees.

  • By creating eco-wealth, ZEE is confident of building a stronger business and a more sustainable world in the process

    Zee is Green eco-friendly initiative takes off

    By A Correspondent

     

    ZEE Entertainment Enterprises Limited (ZEEL) has pledged to go Green with the launch of its ‘ZEE is Green’ initiative. As a pilot project, ZEE has successfully transformed the set of &TV’s ‘Gangaa’ as a ‘Green’ set.

     

    Punit Goenka

    Speaking on this initiative, Punit Goenka, MD & CEO, ZEEL said, “Every industry has environmental responsibilities and the Media & Entertainment Industry is no exception. Film making and content creation is like any manufacturing activity with high fuel and electricity consumption, raw material and manpower usage, and production of landfill waste. With ‘ZEE Is Green’ we aim to translate our environmental commitment into action by integrating sustainability across our organization, in front of the cameras as well as behind it.”

     

    Elaborating further, Goenka said, “Since the last three months, we have been working closely with all the stakeholders, from the production houses to the studio owners to our vendors. We have tried to study their problems, their needs, and their work processes. After doing an in-depth analysis, we have devised eco-friendly systems which do not disrupt their normal processes drastically but will still make a significant impact in the reduction of carbon emissions and production cost, over a period of time.”

     

    Discussing the initiative, Roland Landers, Chief Brand Officer, ZEEL commented, “In line with our corporate brand philosophy of ‘Vasudhaiva Kutumbakam’, ZEE has been embracing the world as One Family. As a caring corporate, we want to touch people’s lives, not just through our entertainment but by building a sustainable enterprise that fosters action towards a better world. Our ‘ZEE is Green’ initiative aims at developing the next generation of production practices that puts people and profits in sync with the planet.”

     

    The mission of ‘ZEE is Green’ is to raise awareness, build capacity and foster the widespread adoption of economically viable, environmentally restorative and socially constructive processes. The pilot project under this initiative was the successful greening of the set of &TV’s popular show ‘Gangaa’. Green measures introduced on the set include the installation of colour-coded bins for waste segregation, an organic waste converter to transform wet waste into manure and a plastic shredder that prevents wrongful reuse of plastic bottles and also saves on the fuel associated with their transportation.

     

    Other measures adopted include the use of eco-fonts to print scripts which will reduce ink consumption by approximately 35%, the installation of water coolers with RO purifier to eliminate the use of 20 liter plastic water jugs, the use of rechargeable batteries in sound recording and the commissioning of solar street lights in the studio complex.

     

    In the next phase, these policies will be extended to other productions with the aim of cutting carbon emissions by 10 per cent in the coming year. Further, ZEE will also be launching Zeeisgreen.com, a portal which will host unique green guides, the green experiences on different sets and useful information which will be easily accessible to all stakeholders. The site will host a unique module which will list vendors who provide environment friendly goods to be used in production.

     

  • The film's roll-out will be supported by a print ad as well as intensive promotion on YouTube and other social media platforms

    Zee Entertainment launches new corporate brand film created by FCB Ulka

    By A Correspondent

     

    You hear Prime Minister Narendra Modi talk of ‘Vasudhaiva Kutumbakam’ in most of his addresses internationally. Just last week, speaking to the Indian diaspora in Shanghai, China, the Prime Minister spoke of Vasudhaiva Kutumbakam which can be translated from the Sanskrit as The World is My Family.

     

    Interestingly, Vasudhaiva Kutumbakam is also the corporate credo of Zee Entertainment Enterprises Limited (ZEEL).  Now building on its global positioning of ‘Vasudhaiva Kutumbakam – The World is My Family’, ZEEL has announced the launch of its new corporate brand film. Currently reaching over 959 million viewers across 169 countries, the film reiterates Zee’s role as a global brand, a cultural ambassador, uniting people in India and across the world through its wide network of 33 domestic and 36 international channels.

     

    Zee Entertainment had unveiled its corporate brand positioning and identity,‘Vasudhaiva Kutumbakam – The World is my Family’, in 2013.

     

    Roland Landers
    Satbir Singh

    Speaking on the new brand film, Roland Landers, Head – Corporate Brand, ZEEL said, “In its journey of 22 years, Zee has made a significant place in the hearts and minds of millions of viewers across the world. Through this film, we not only cherish their presence, but also welcome the world to be a part of this family.”

     

    Satbir Singh, Chief Creative Officer, FCB Ulka, the communications agency that created the film said, “Zee is today this massive family with millions of family members around the world, connected through highly engaging television and movie content. We are celebrating this inclusive value of Vasudhaiva Kutumbakam, or the World is a Family, with this film.”

     

    The film will be aired on all Zee Entertainment and Zee Media channels starting today (May 18). The film’s roll-out will be supported by a print ad as well as intensive promotion on YouTube and other social media platforms.

     

     

     

  • The move is aimed at chalking a clear path for ZEE to achieve its goals set for the year 2020

    Zee engages Interbrand for its Corporate Brand Valuation Study

    By A Correspondent

     

    To take its vision forward, ZEE has associated with Interbrand to further strengthen, study and analyze its corporate brand. Along with the corporate brand, six key channels under the mother brand form a part of this brand study, aimed at chalking a clear path for ZEE to achieve its goals set for the year 2020.

     

    Roland Landers
    Ashish Mishra

    Roland Landers, Head – Corporate Brand, ZEE Entertainment, said, “Corporate Brand ZEE has grown stronger, with its presence in over 169 countries. With our engaging content, which entertains over 800 million viewers worldwide, we envision to be ranked amongst the top brands in India by the end of 2015 and top global brands by the year 2020. Interbrand’s association will certainly add immense value to this journey, in terms of valuating the brand’s contribution to the enterprise value and in navigating the brand to achieve its qualitative goals.”

     

    On the ZEE partnership, Ashish Mishra, MD, Interbrand India said “Our purpose as Interbrand India is to help Best Indian Brands navigate their ambitions to be Best Global Brands. We are delighted to be entering into a long term partnership with ZEE which is a Best Indian Brand contender and has the potential to emerge as a strong global brand too.”