ITV

Tag: cabinet

  • Why the NBA joined the respondents battling Kantar in the courts

    Why the NBA joined the respondents battling Kantar in the courts

    MUMBAI: When Kantar Market Research Services, a shareholder of TAM media research, decided to go to court to legally oppose one of the guidelines that had been recently approved by the cabinet committee on economic affairs, it raised some eyebrows though the move was not unexpected. And even though Kantar was not given a stay  on the legality of the cross holding  legislation that it has been seeking, what came as a surprise on day two of the hearing was when the News Broadcasters Association (NBA) was made a party to the case.

     

    What made the biggest news broadcasting representative body in the country decide to intervene in the case and be subsequently made a part of it? Contrary to what many may believe, the NBA is not against Kantar but rather it is in favour of the guidelines. “We went as interveners to show our support to the approved guidelines and the court decided that we should be a part of it,” says a senior official from the NBA.

     

    The news organisation has always been vocal on the alleged  irregularities and kinks in TAM’s rating system. “We had decided a while ago that we would make a mention of our support in court. Change in the way the ratings are delivered has been pending for several years and finally the moment of truth has arrived  and so we don’t need it to be stalled again,” informed the official.

     

    In mid-2013, several news channels members of the NBA had decided to boycott TAM claiming that its TV ratings data was rigged. Voices in support of the upcoming agency the Broadcast Audience Research Council (BARC) grew overwhelmingly. The NBA now feels that there could be no better time than now for the guidelines to come into effect.

     

    The case which is ongoing in the Delhi High Court is now being fought by the petitioner Kantar  against the government of India, the Telecom Regulatory Authority of India (TRAI) and the NBA. In media interviews Kantar has stated that it won’t go down so easily and that the cross holding guideline it has challenged will make its life and existence a misery.

     

    In the hearing on 29 January, the HC decided not to give a stay order to Kantar since the regulation was promulgated  by a statutory body – the TRAI. On the same day, the NBA pointed out that TAM operates on a small sample size of just 8,000 people. The case will next be heard on 11 February.

     

    All the three respondents have a week’s time to file their respective affidavits to the court.

     

    In October last year when the ad cap case was ongoing in the Telecom Disputes Settlement Appellate Tribunal (TDSAT), three broadcasters namely Star, Zee and Viacom18 had tried to become  interveners in support of the 12 minute ad cap regulation but they had been barred from doing so since their representative body – the Indian Broadcasting Foundation – had decided to withdraw the appeal against the ad cap. However, the NBA claims it has consistently been vocal about its views on TV viewership ratings, hence its candidature as an intervener has validity.

     

    The key questions now are whether the HC will offer a lifeline to TAM  by imposing a stay on implementation of the cross holding guideline or whether will it cut off its oxygen supply?

  • What now for TV ratings and TAM

    What now for TV ratings and TAM

    MUMBAI: When the cabinet committee on economic affairs announced that it had approved the Telecom Regulatory of India (TRAI) recommendations on TV ratings guidelines in the first week of  2014 the first question that struck everyone was – what will TAM do now?

     

    The fracas between angry broadcasters and TAM has been brewing for  several years and finally came to its boiling point last year when seven TV networks announced that they were clicking on the TAM TV rating unsubscribe button. This put a big question mark over TAM’s very existence but it managed to get out of the corner it was in by hammering out a solution which was acceptable to most subscribers. 

     

    As far as the current threat to TAM’s continuance is concerned, the Cabinet’s go ahead to the proposed regulatory framework has now to be notified. When that will happen no one knows, though speculation is that it could be sooner than later. However, what is sure is that TAM will have 30 days from notification date to comply with its guidelines and then seek a licence from the Ministry of Information and Broadcasting (MIB).  From all angles it looks like a pressure cooker-like situation that the TV ratings provider has landed itself in. 

     

    Broadcasters seem to be the happiest of the lot. NDTV group CEO Vikram Chandra – whose company sued TAM in a New York court two years ago – is cock-a-hoop with delight that the government has affirmed what industry has been voicing since nearly six to seven years: that TAM and the ratings process in India needs to be spruced up.

     

    “The introduction of firm guidelines is a positive step as everything is clear now. It shows that we should never be hesitant to change something that isn’t right,” says Chandra.

     

    Whether TAM will manage to find the capital to ramp up its peoplemeter sample to 20,000 within a month or two is something that is concerning industry. What is also a big question mark is how the MIB will view the WPP group’s 50 per cent equity in TAM (through Kantar Media Research 20 per cent, and Cavendish Square Holdings 30 per cent), as mentioned in the NDTV suit with the supreme court in New York.

     

    “Kantar and Cavendish will have to exit since their parent is WPP. TAM has been worrisome and everyone has realised it. So now it has just two options, either shape up or ship out,” says a senior news broadcaster from the News Broadcasters Association (NBA).

     

    However, a source from the IBF presents another option. “We are a democratic country so the government cannot force things on anybody. TAM has the freedom to go to the court and appeal against the guidelines,” says the source.

     

     If TAM decides to oppose the guidelines and go to court and gets a stay order, then we might see some delays in the roll out of the guidelines. This will allow it to continue to operate until a final decision is given by the court, thus buying it some time. Additionally, the industry-backed Broadcast Audience Research Council (BARC) will also get some time to get its act together with the minimum 20,000 meters.

     

    Media agencies and advertisers aren’t too happy with the way the cabinet has thrust the deadline on TAM.

     

    Says a senior media professional:  “In the beginning of cable and satellite TV in India in the nineties, we had TAM and INTAM. The latter could not sustain itself and TAM continued. Then we had TAM and aMap in the mid of the previous decade. aMap too found the going tough without full industry support and folded up. The fact is TAM has started from scratch and survived so many upheavals. It is a sad situation to be destroying something that has been existing and running for so long. ”

     

    However, she is clutching on to a thin sliver of hope that TAM and BARC could co-exist for a while until things smooth out on the ratings front. 

     

    “The time given to follow and make all the changes as per the guidelines is impractical,” says Madison World chairman & MD Sam Balsara. “It is obvious that TAM will not be able to handle it all at such a short notice.”

     

    The Indian Society of Advertisers (ISA) chairman Hemant Bakshi says that he is discussing the consequences of the cabinet’s clearance to the new ratings guidelines with major advertisers and other players to gauge the possible impact on their businesses.

     

    One scenario that everyone is dreading is that TAM fails to comply with all the requirements within the time period it is given, and the courts dismiss its appeal, if it makes one. Will it then be forced to cease operations immediately and lead to a ratings-less period for the Indian television business? This is extremely alarming for all concerned.

     

    IPG Mediabrands CEO Shashi Sinha who is also in the technical committee of BARC feels that the management of the new proposed ratings system needs to pull their socks up, and accelerate the rollout of people meters. But even then he says that “we are hoping to be on our feet and start functioning only by September/October.”

     

    That seems a long, long time away, going by how things are moving. Madison’s Balsara is quite clear on the way forward. Says he: “As an industry we need ratings, all the time! Therefore, till BARC comes up, we need an alternate. As an industry we should appeal to the ministry to relax the deadline for the implementation.”

     

    Hence, it is imperative for all concerned – whether it is the MIB led by Manish Tewari, the government, TAM, the ISA, advertising agencies, broadcasters and BARC – to choose their next steps wisely.

     

  • Cabinet gives go-ahead to TV ratings regulatory mechanism

    Cabinet gives go-ahead to TV ratings regulatory mechanism

    NEW DELHI:  The Union Cabinet today gave the go-ahead to the television ratings guidelines ,which had earlier been proposed by the Telecom Regulatory Authority of India (TRAI) in September 2013, cleared by the Ministry of Information and Broadcasting (MIB) in November. The ministry had then forwarded the proposed guidelines for the cabinet’s approval. With the cabinet’s clearance the MIB will now have regulatory control over TV ratings agencies in India.

     

    This was disclosed by MIB minister Manish Tewari after the cabinet meeting.

     

    The guidelines cover detailed procedures for registration of ratings agencies, eligibility norms, terms and conditions of registration, cross holding restrictions, methodology of audience measurement, a complaint redressal mechanism, sales and use of ratings, audit, disclosure norms, reporting requirements and action on non-compliance of guidelines etc.

     

    The guidelines state that TV ratings providers – including TAM Media which is the industry standard currently – will have to first get registered with the MIB. The registration will be given to them only if they comply with the rules the TV ratings guidelines have enumerated. Among these figure:

     

    * No single company / legal entity either directly or through its associates or interconnect undertakings shall have substantial equity holding that is, 10 percent or more of paid up equity in both rating agencies and broadcasters/advertisers/advertising agencies. 

     

    * The ratings agency should have a net worth of at least Rs 20 crore.

     

    * Panel homes for audience measurement shall be drawn from the pool of households selected through an establishment survey. A minimum panel size of 20,000 is to be implemented within six months of the guidelines coming into force. Thereafter the panel size shall be increased by 10,000 every year until it reaches 50,000. 

     

    * Ratings ought to be technology neutral and shall capture data across multiple viewing platforms viz. cable TV, Direct-to- Home (DTH), Terrestrial TV etc. 

     

    * Secrecy and privacy of the panel homes must be maintained. 25 percent of panel homes shall be rotated every year. 

     

     * The rating agency shall submit the detailed methodology to the Government and also publish it on its website. 

     

    * The rating agency shall set up an effective complaint redressal system with a toll free number. 

     

    * The rating agency shall set up an internal audit mechanism to get its entire methodology/processes audited internally on quarterly basis and through an independent auditor annually. All audit reports to be put on the website of the rating agency. Government and TRAI reserve the right to audit the systems /procedures/mechanisms of the rating agency. 

     

    * Non-compliance of guidelines on cross-holding, methodology, secrecy, privacy, audit, public disclosure and reporting requirements shall lead to forfeiture of two bank guarantees worth Rs 1 crore furnished by the company in the first instance, and, in the second instance shall lead to cancellation of registration. For violation of other provisions of the guidelines, the action shall be forfeiture of bank guarantee of Rs. 25 lakh for the first instance of non-compliance, forfeiture of bank guarantee of Rs 75 lakh for the second instance of non-compliance and for the third instance, cancellation of registration. 

     

    * A time of 30  days would be given to the existing rating agency to comply with the guidelines. 

     

    * The guidelines would come into effect immediately from the date of notification. 

     

    The Guidelines for Television Rating Agencies in India are designed to address aberrations in the existing television rating system. These guidelines are aimed at making television ratings transparent, credible and accountable. The agencies operating in this field have to comply with directions relating to public disclosure, third party audit of their mechanisms and transparency in the methodologies adopted. This would help make rating agencies accountable to stakeholders such as the Government, broadcasters, advertisers, advertising agencies and above all the people. 

     

    Television Rating Points (TRPs) have been a much debated issue in India since the present system of TRPs has reportedly not found favour with industry, consumer groups, broadcasters, agencies, government who have said they are riddled with several maladies such as small sample size which is not representative, lack of transparency, lack of reliability and credibility of data etc.

     

    In 2008, the MIB had sought recommendations of TRAI on various issues relating to TRPs and policy guidelines to be adopted for rating agencies. TRAI, in its recommendations in August 2008, had amongst other things recommended the approach of self-regulation through the establishment of an industry-led body, that is the Broadcast Audience Research Council (BARC). 

     

    The MIB had constituted a Committee under the Chairmanship of Dr. Amit Mitra, the then Secretary General FICCI, in 2010 to review the existing TRP system In India. The committee also recommended that self-regulation of TRPs by the industry was the best way forward. 

     

    Since, the BARC could not operationalise the TRP generating mechanism, the  sought recommendations of TRAI in September 2013 on comprehensive guidelines/accreditation mechanism for television rating agencies in India to ensure fair competition, better standards and quality of services by television rating agencies. TRAI recommendations on Guideline for Television Rating Agencies were received in September 2013. While supporting self-regulation of television ratings through an industry-led body like BARC, TRAI recommended that television rating agencies shall be regulated through a framework in the form of guidelines to be notified by MIB. It also recommended that all rating agencies, including the existing rating agency, shall require registration with MIB in accordance with the terms and conditions prescribed under the guidelines. 

     

  • Cabinet set to deliberate on TV ratings guidelines

    Cabinet set to deliberate on TV ratings guidelines

    MUMBAI: The Telecom Regulatory Authority of India’s (TRAI’s) recommendations are seeing movement to enable them to serve as the gold standard for television ratings. Currently with the law ministry, the file relating to TV rating guidelines is expected to be presented to the Cabinet very soon.

    The TRAI had come up with its own analysis and recommendations around how TV ratings should be done in India following  discussions with the various stakeholders in September 2013; with the Union Cabinet expected to deliberate and give it sanction soon it could well be en route to become law.

     “The recommendations are fair and are neither pro nor against any measuring body. However, it is very clear that it will be passed by the cabinet,” says the highly placed source from the Indian Broadcasting Foundation (IBF).

    As reported by indiantelevison.com in September, the regulatory body had sent out the recommendations on what should serve as guidelines to put in place a transparent, credible and reliable television ratings process in the country.  

    Amongst the recommendations is that any agency wanting to offer TV viewership monitoring or rating services has to perforce get itself registered with the ministry of Information & Broadcasting (MIB) if it fulfills the following guidelines: “The rating agency shall be set up and registered as a company under the Companies Act, 1956; any member of the board of directors of the television rating agency should not be in the business of broadcasting/ advertising/advertising agency; the rating agency should have a minimum net worth of Rs 20 crore; the rating agency should also meet the prescribed cross-holdings requirements.”

    TRAI had also stated that to keep the ratings process credible, there should be a minimum of 20,000 panel homes which have to be set up within six months of the guidelines being implemented. Thereafter the number of panel homes has to be increased by 10,000 every year until it reaches 50,000.

    To meet and fulfill the last criteria, TAM, the current measuring body, will have to invest a large sum of moolah ( Rs 100 crore plus) every year. This could well be a major challenge for it, if sources are to be believed. For the Indian broadcast industry, has pretty much been chary of funding any of its expansion plans, in the past.

    “Its very existence will be under tremendous threat over the next year or so,” says a media observer. “If it manages to raise the money despite all the cross media equity holding restrictions, then it should be all right. But it will have to contend with BARC which will be getting the industry’s support and should start by mid to late next year.  I would not like to be in TAM’s shoes.”

    However, the source adds that most stakeholders involved in it hope that TAM will be able to participate in the working of BARC as well.

    Another industry source comments, “We don’t care about what happens to TAM. The industry has opted for a new measuring system, then why should we think about TAM’s fate?”

    Watever be the case, one thing is clear BARC is no more suffering teething problems and will sooner than later  bring about a paradigm shift in the audience measuring game in India. And as far as TAM goes, it needs come up to scratch and follow the TRAI guidelines.

    The ratings race may have only just begun.