Govt plans to liberalize TV rating norms, but proposals raise credibility issues

So far, TV rating operations in the country were led by BARC (Broadcast Audience Research Council), which many saw as a monopoly. On Thursday, the ministry of information and broadcasting said that any company registered in India under the Companies Act, 2013 could seek registration for providing television rating services, as long as it doesn’t undertake consultancy or advisory roles, which would lead to a potential conflict of interest with its main objective of rating.

Some clauses in the Policy Guidelines for Television Rating Agencies in India’, originally notified in January 2014, that barred the board of directors of a television rating company from being engaged in the business of broadcasting, advertising, or running an advertising agency, are proposed to be scrapped. Those that dealt with cross-holding restrictions, typically intended to prevent ownership conflicts between related entities, have been eliminated, too, under the proposed amendments.

The ministry has sought stakeholder views on the proposed amendments within 30 days, after which the guidelines would be finalized.

“This proposed amendment suggests a shift towards a more liberalized ecosystem and increased competition could improve accountability and consumer trust,” Kaushik Moitra, partner, practice lead—regulatory, intellectual property, technology, media and telecommunications and practice development at Bharucha & Partners said. Moitra added that Trai (Telecom Regulatory Authority of India) had also previously expressed concerns regarding BARC’s monopoly in TV ratings, which if the amendment comes into force, will now be challenged by OTT platforms, DPOs (distribution platform owners) and Big Tech, which will be able to establish or invest in independent audience measurement bodies.

“New entrants will have to prioritize investment in technological development and data analytics to compete with the existing model. Additionally, by expressly barring rating agencies from taking up consulting roles, rating systems could become more independent and reliable. This could assist advertisers make better informed decisions, compelling them to restructure their marketing plan on the basis of transparent TRP insights, possibly increasing expenditures,” Moitra said.

Equally, the lack of a similar metric applying to all rating agencies may lead to confusion and will have to be monitored, he emphasized.

To be sure, some industry experts also believe that lower entry barriers to set up TV rating agencies will open the floodgates for any company to start acting in its own interests. “There will be a demand and supply crisis, where supply will beat demand. Whom is the audience supposed to trust?” a senior broadcaster said. The person added that DPOs including DTH (direct-to-home) players such as Tata Play and Airtel TV have long had data on viewership of different channels, which is what TV rating agencies put out, and which the DTH operators can now monetize. Plus, with the proposed amendments, any TV broadcaster could set also set up audience measurement unit and claim top ratings, leading to confusion.