By Azdhan
The Ministry of Information and Broadcasting (MIB) has proposed an amendment to the current ‘Policy Guidelines for Television Rating Agencies in India’, which will enable over-the-top (OTT) service providers, distribution platform operators (DPOs), and Big Tech firms to open their own ratings agencies.
The MIB is accepting feedback and suggestions – preferably sent through an email to [email protected] – for this draft amendment until August 1.
Notably, last year the Telecom Regulatory Authority of India (TRAI) had released its recommendations on the formulation of the National Broadcasting Policy. It advocated for multiple rating agencies and a revamp of existing audience measurement systems in order to enhance the accuracy of the data. It also asked for the new policy framework to measure OTT viewership data, as well as a policy for radio audience measurement.
What Does the Amendment Mean?
The ‘Policy Guidelines for Television Rating Agencies in India’ mention that the ratings must be technology-neutral, covering all viewing platforms, like cable TV, DTH, terrestrial TV, including online platforms where feasible. Online platforms refer to the OTT platforms like Netflix, JioHotstar, Amazon Prime Video etc.
As per the draft revised guidelines, clause 1.1 has been updated to mandate that only companies registered under the Companies Act, 2013, will be eligible to apply for registration as TV rating agencies. Additionally, clause 1.4 has also been updated to prohibit these agencies from undertaking any consultancy or advisory roles to avoid a potential conflict of interest with their core function of providing TV ratings.
Elsewhere, the removal of clause 1.5 removes the restriction that previously barred a member of the Board of Directors of a TV rating company from being involved in the broadcasting or advertising sectors in any capacity. Now as per the new draft, such a person may now hold business interests in the broadcasting or advertising sectors without any concerns about a conflict of interest.
Similarly, authorities have removed clause 1.7, which previously mandated restrictions on crossholdings. This change means companies and their subsidiary entities may now hold substantial equity (which means equity of 10% or more of paid-up equity) within rating agencies, broadcast businesses, advertisers or any other advertising agencies simultaneously.
Elsewhere, a single company can now hold substantial equity in more than one rating agency operating in the same area. Furthermore, the new draft also lifts the restrictions that previously applied to individual promoters (of a rating agency) having stakes within a broadcasting entity, advertising agency, or any advertiser.
The new draft also proposes to delete a proviso that exempted the industry-led, self-regulated Broadcast Audience Research Council (BARC) from the provisions of clauses 1.5 and 1.7, among others, within the policy guidelines.
Why it Matters:
BARC started providing television analytics data that helped broadcasters and advertisers make informed decisions in 2010. Since then, no other agency has offered similar services.