ITV

Tag: IBF

  • SC postpones IBF petition on digitisation to 8 July

    SC postpones IBF petition on digitisation to 8 July

    NEW DELHI: The supreme court has once again rejected an application by the Indian Broadcasting Foundation (IBF) for staying the court proceedings in the Andhra Pradesh and Madhya Pradesh high courts.

    Chief justice Altamis Kabir, justice Vikramjit Sen and justice S A Bobde fixed 8 July as the date for further hearing on the petition by the IBF challenging the orders in the Karnataka, Gujarat, Madhya Pradesh and Andhra Pradesh high courts.

    It also listed along with these cases a petition by IBF against the multi-system operator Digicable.

    Some more MSOs from Andhra Pradesh including Chalasani Narendra Varaprasad were allowed to be impleaded in the case.

    The IBF petition seeks to ensure that digitization is implemented as scheduled and without hindrance.

    When the special leave petition had been mentioned before the court on 16 April, it had declined the prayer to stay any of the proceedings in the various high courts as it was informed that the Karnataka high court judgment on the subject was due. The bench presided over by chief justice Altamas Kabir felt it would await the judgment of the high court before taking up the matter.

    The Karanataka, Gujarat and Allahabad high courts have since dismissed as having no merit the petitions seeking extension of the switch-of dates for phase II of digitisation in Bengaluru, Mysore, Ahmedabad, Rajkot, Surat, Vadodara, Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut and Varanasi.

    Petitions challenging digitisation are currently pending in the Madras, Andhra Pradesh and Madhya Pradesh high courts. These affect the cities of Chennai, Hyderabad, Visakhapatnam Bhopal, Indore, and Jabalpur.

  • Industry reacts to move to net billing

    Industry reacts to move to net billing

    MUMBAI: After nearly three weeks of speculation, debate and discussions, the advertising agencies, represented by the Advertisng Agencies‘ Association of India (AAAI), and the broadcasters, represented by the Indian Broadcasting Foundation (IBF), the bodies have come to a consensus about shifting to net billing.

    The decision came as a relief to both agencies and broadcasters as the latter had stopped airing ads on their respective networks. Clients were yelling blue murder at the agencies for not being able to promote their products to TV viewers. Indiantelevision.com spoke to some of the network officials to get their views on what they thought about the settlement between the two:

    Says MCCS CEO Ashok Venkatramani, “I welcome it completely. It‘s the right thing and I am very glad that the issue is resolved and I think we have done the right thing moving to net billing. It should have happened earlier, but it‘s better late than never.”

    AXN Networks India business head Sunil Punjabi feels that the new net billing system is not going to affect broadcasters. “It doesn‘t make a difference from a channel‘s perspective. It is just that things will be more transparent. From a tax perspective things will be clearer.” He however adds that from an agency’s perspective there could be an impact pertaining to commission. “Earlier on a bill of Rs 100 we were paid Rs 85. The rest was the agency‘s commission. Now we will charge Rs 85 and get paid that.”

    Venkatramani adds that the industry was “just hanging to the system which is completely outdated and nobody was gaining. It was just a paper number, paper figure or you can say paper transaction and it doesn‘t make much difference to their (agencies‘) life. They just need to sit with their clients and renegotiate their actual fees.”

    Taking a slightly milder tone, Colors CEO Raj Nayak said, “I am glad that both the IBF & the AAAI have been able to come to a mutually agreeable solution on the net v/s gross billing issue. This is an industry issue and we have to address it together keeping the interests of all stakeholders in mind.”

    NDTV group CEO Narayan Rao is in complete agreement and adds, “We were part of that decision and we fully supported it. I am glad that the IBF leadership and also some of the CEOs of our broadcasting channels have been able to achieve this conclusion.”

    Helios Media CEO Divya Radhakrishnan feels that the standoff between the two stakeholders of the industry served little more than proving a point one way or another. She said, “Broadcasters and agencies are working in the same space of providing communication solutions for brands. Hence there can be no reason for working at cross purposes. An amicable solution works for all concerned. Such stand offs serve no purpose other than wanting to prove a point. Lastly, if a stance has to be taken then it cannot be selective.”

  • IBF-AAAI resolve net billing issue

    IBF-AAAI resolve net billing issue

    MUMBAI: The stalemate between the Indian Broadcasting Foundation (IBF) and the Advertising Agencies Association of India (AAAI) on the net billing issue has been resolved and the blackout by the former on accepting TV ads has been lifted.

    According to IBF board member and Star India CEO Uday Shankar: “We have an agreement to do net billing. But we have also created a mechanism in the invoice and contract to enable agencies to charge the fees separately from advertisers effective 1 May.”

    An IBF board meeting is scheduled for later today, revealed Shankar, in order to communicate to broadcasters to resume ads.

    As per the solution hammered out by the two: the invoices that broadcasters raise to agencies will have a rider below which states that the advertiser and agency are free to have a compensation relationship which is as per accepted industry practice. The agencies will then charge clients their commissions on top of that in the bills they present to them.

    “Basically, what this means is that the broadcaster can bill the agency Rs 85 for a Rs 100 value TV spot,” says an industry veteran. “The agency can then bill the client for an amount not exceeding 1.1765 of the net value of the bill.”

    TV commercials are expected to begin airing on channels from today.

  • AAAI version of net billing resolution with IBF

    AAAI version of net billing resolution with IBF

    MUMBAI: Broadcasters, facing tax liabilities on account of non-deduction of TDS on agency commission, had stopped airing ads. This was because advertising agencies did not agree to their proposal to move to net billing. AAAI continues to maintain that the tax demands made on some broadcasters are bad in law. It has committed that it will attempt to get a circular from CBDT.

    A circular that clarifies that broadcasters like other media are not required to deduct TDS from agency commission since broadcasters do not pay the agency commission.

    In a meeting that lasted over seven hours, representatives from IBF and AAAI last night arrived at an elegant solution that meets the needs of broadcasters and at the same time assures agencies of their legitimate earnings.

    As a result, advertisers‘ ads will be back on air starting May 3rd.

    Says Arvind Sharma, President AAAI, “We are happy that we have resolved the impasse. Advertisers‘ spots will be back on air starting today. We ensured that both broadcasters‘ and agencies‘ business interests are protected. We are happy that the solution we have found will meet the needs of our member agencies in terms of their transactions with their clients.”

  • IBF petition to prevent delay in digitisation to be heard on 30 April

    IBF petition to prevent delay in digitisation to be heard on 30 April

    NEW DELHI: The Supreme Court has listed a petition for 30 April by the Indian Broadcasting Foundation (IBF) seeking to ensure that digitisation is implemented as scheduled and without hindrance.

    The case had been listed for the last two days but could not be heard because of pending business. On mention by counsel for the petitioner, the case was listed for hearing on the last day of the month.

    When the special leave petition had been mentioned before the Court on 16 April, it had declined the prayer to stay any of the proceedings in the various High Courts as it was informed that the Karnataka High Court judgment on the subject was due. The bench presided over by Chief Justice Altamas Kabir therefore felt it would await the judgment of the High Court before taking up the matter.

    The Karanataka, Gujarat and Allahabad High Courts have since dismissed as having no merit to the petitions seeking extension of the switch-off dates for Phase II of digitisation in Bengaluru, Mysore, Ahmedabad, Rajkot, Surat, Vadodara, Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut and Varanasi.

    Petitions challenging digitisation are currently pending in the Madras, Andhra Pradesh and Madhya Pradesh High Courts. These affect the cities of Chennai, Hyderabad, Visakhapatnam Bhopal, Indore, and Jabalpur.

  • CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    MUMBAI: The Cable & Satellite Broadcasting Association of Asia (CASBAA) and The Indian Broadcasting Foundation (IBF) have requested the Indian government to roll back the increase in taxation on royalty and fees for technical services in the hands of a non-resident as proposed in The Financial Bill 2013.

    In a letter addressed to finance minister P. Chidambaram, the two associations have stated that Section 115A of The Income Tax Act, 1961, levies gross taxes of 10 per cent on royalty and technical services. The latest proposal by the finance ministry proposes to take this up to 25 per cent. Along with surcharge and an education cess, the effective rate comes to 27.037 per cent. When grossed up with other related levies, it will actually amount to 33 per cent, they say.

    Their letter to the finance minister points out that the proposed increased levy will have an impact on the Indian and international satellite and broadcasting sectors as the services they provide come under “royalty and fees for technical services.”

    India has constrained satellite capacity and it is highly dependent on foreign satellites. A recent study has shown that international satellites are providing roughly 60 per cent of the broadcasting capacity for India’s satellite DTH broadcasters.

    The associations have reiterated in the letter that international satellite operators will per force have to pass on the increased operational cost to their Indian broadcasting and other clients, as their margins are not fat enough to absorb the impact of higher taxation. DTH operators, broadcasters who deliver channels to India’s 90 million cable TV homes and cable TV operators will also in turn, then pass on the increased costs on to their subscribers. The cascading effect could be substantial, the two associations warn.

    “We believe that a good tax policy should aim at moderate rates, particularly in industries providing an engine for India’s growth. An increase to the levels proposed in the bill would be counter-productive; it would affect not only the operators providing satellite services, but a whole host of related sectors – including broadcasting, media, telecommunications and IT, which have been spearheading India’s growth story in recent years. Hence the increase should be rolled back,” the letter highlights.

    It concludes by saying that “any future increases that might be considered should be phased in, with a transition period of at least five years, to allow taxpayers time to plan ahead and to avoid any one-off uplift which could force the closure of some small operators.”

    Will the finance minister give a kind ear to Casbaa & IBF?

  • IBF petition to prevent any delay of digitisation expected to be heard on Thursday

    IBF petition to prevent any delay of digitisation expected to be heard on Thursday

    New Delhi: The Supreme Court is expected to hear on 25 April a petition by the Indian Broadcasting Foundation seeking to ensure that digitisation is implemented as scheduled and without hindrance.

    The case had been listed for today, but could not be heard because of pending business. The Court is closed tomorrow because of Mahavir Jayanti.

    When the special leave petition had been mentioned before the Court on 16 April, it had declined the prayer for a stay on any of the proceedings in the various High Courts, as it was informed that the Karnataka High Court judgment on the subject was due. The bench presided over by Chief Justice Altamas Kabir therefore felt it would await the judgment of the High Court before taking up the matter.

    The Karnataka and Gujarat High Courts have since dismissed as having no merit to the petitions seeking extension of the switch-off dates for Phase II of digitisation in Bengaluru, Mysore, Ahmadabad, Rajkot, Surat and Vadodara.

    Petitions challenging digitisation are currently pending in the Madras, Andhra Pradesh and Madhya Pradesh High Courts. These will affect the cities of Chennai, Hyderabad, Visakhapatnam Bhopal, Indore, and Jabalpur.

  • Broadcasters to send off net bills; AAAI reluctant to accept

    MUMBAI: The curtains are slated to go down on a very long-standing practice in the media industry tonight. Sources in the broadcasting fraternity reveal that net bills will be dispatched to media agencies for television commercials carried on channels. These will replace the gross bills which used to be the norm.

    This move comes following an Indian Broadcasting Foundation (IBF) decision on the matter. A month or so back, certain broadcasters received notices from the income tax department on gross bills not having a deduction of TDS on agency commissions. The IBF then decided to move over to the net billing system from the first billing cycle of April, something which the Advertising Agencies Association of India (AAAI) opposed. The IBF then told its members to defer the dispatch for another week to allow the IBF, the AAAI and the Indian Society of Advertisers (ISA) to hammer out a solution. Somehow, the three could not meet last week.

    And the IBF sent out another circular on Friday (19 April), advising its members to send out net bills on 22 April.

    “IBF‘s circulars are always in advisory form. After consultation with some more tax experts, the IBF has told us to dispatch the net bills tonight,” said the chief financial officer of a leading broadcast company.

    While broadcasters have already decided to go ahead with the issuance of net bills on 22 April, AAAI appeared to be oblivious to this development when Indiantelevision.com telephoned its president and Leo Burnett chairman & CEO Indian subcontinent Arvind Sharma. He pointed out that there has been no communication from the IBF that broadcaster members would be dispatching net bills tonight. “I hope it is not true. If they were to dispatch the net bills tonight, we will be constrained to send them back,” he said.

    “We at AAAI as well as our clients represented by ISA understand the challenges faced by the broadcasters and that is why we had proposed a joint association meeting on 23 April. The IBF, however informed us that it would not be possible to have it on that day. We still believe that if the three associations put their heads together along with some expert tax consultants, a win-win answer for all can be formed. We would urge IBF to come for such a joint meeting,” Sharma added.

    Obviously, the industry has not seen the last of the net vs gross billing issue.

  • IBF tells members to postpone net billing dispatch to agencies by a week

    MUMBAI: Advertising and media agencies in India have got a breather on the net billing issue. Even as the Indian Broadcasting Foundation (IBF) announced that its members would move towards net billing for advertising carried on TV channels from the first billing cycle in April, it followed it up with another circular dated 15 April asking them to “delay the generation and dispatch of bills on a net basis by a week in order to facilitate the discussion between the sub group of the IBF and the Advertising Agencies Association of India (AAAI) which is seeking to find a solution to the issue.”

    Members of the IBF are grappling with notices served on them by the income tax authorities for non-payment of TDS on the 15 per cent agency commission, which shows up in the gross bills they present to media agencies. The IBF had therefore decided to move to a net billing system without the agency commission being displayed in the bills.

    With another week in the bag, the IBF, AAAI and Indian Society of Advertisers (ISA) are planning to have a joint meeting in the coming days to plan their course of action and come up with solutions which work for all the three bodies.

    One of the measures being considered is a joint representation to the finance ministry on the issue once a common strategy is developed. KPMG and E&Y have been roped in to give their opinion and on the way forward.

  • Trai seeks industry’s views on TV ratings system

    MUMBAI: In an effort to create a reliable television rating system, the Telecom Regulatory Authority of India (Trai) today issued a paper to deal with issues of establishing an accreditation mechanism for the rating agency and methodology of audience measurement.

    The consultation paper titled “Guidelines/Accreditation Mechanism for Television Rating Agencies in India” also seeks to get the views of stakeholders on sample size, secrecy of sample homes, cross holding between rating agencies and their users, complaint redressal, sale and use of ratings, disclosure and reporting requirement, competition in rating services, and audit.

    The consultation paper aims to lay down comprehensive guidelines/accreditation mechanism for TRP (television rating points) rating agencies in India to ensure transparency and accountability in the rating system. Written comments have been invited by 9 May with any cross-comments by 16 May.

    The Consultation paper has been issued at the behest of the Information & Broadcasting ministry, which had earlier received a report from the Amit Mitra Committee on the matter.

    The Indian Broadcasting Foundation (IBF) has since been working with the Advertising Agencies Association of India (AAAI) and the Indian Society of Advertisers (ISA) to set up the Broadcasting Audience Rating Council (BARC) as an alternative to TAM.

    “Incorrect ratings will lead to production of content which may not be really popular while good content and programmes may be left out. Therefore, there is a need to have an accurate measurement and representative television ratings for the programmes,” the Trai says.

    Seeking to ensure “fair competition, better standard and quality of services”, the government had asked the Trai to draft recommendations on comprehensive guidelines and accreditation mechanism for agencies involved in measuring television rating points.

    The consultation paper also outlines suggestions on the eligibility criteria for ratings agencies. Some of the suggested criteria include –
    a. The rating agency should be set up and registered as a company under the Companies Act, 1956.

    b. The Rating Agency should have, in its Memorandum of Association, specified rating activity as one of its main objects.

    c. The rating agency should have a minimum net worth (say rupees five crore).

    d. The rating agency should have professional competence, financial soundness and general reputation of fairness and integrity in business transactions, to the satisfaction of the Government;

    e. Rating agency should meet the prescribed cross holding requirements.

    Another key area that the consultation paper touches upon is the issue of cross holding between a ratings agency and its user. It has asked stakeholders to comment/suggest on the guidelines of cross holding of ratings agency which may include:

    a. There should be no cross holding between the rating agencies and broadcasters, advertisers, media agencies and advertising agencies.

    b. This cross-holding restriction should also be applicable in respect of individual promoters besides being applicable to legal entities.

    c. No single company/ legal person, either directly or through its associates or inter-connected undertakings, shall have substantial equity holding in more than one rating agency. Similarly no single company/ legal person, either directly or through its associates or inter-connected undertakings, shall have substantial equity in both rating agencies and broadcasters/advertisers/ media agencies/advertising agencies. Substantial equity could be defined as certain percentage (say 10% or more) of paid equity

    d. A promoter company/ legal person/ directors of the rating agency cannot have stakes in any broadcaster, advertiser and advertising agency either directly or through its associates or inter-connected undertakings.