ITV

Tag: TV ratings

  • I&B minister Manish Tewari inaugurates BES Expo 2014

    I&B minister Manish Tewari inaugurates BES Expo 2014

    NEW DELHI: The Information and Broadcasting minister Manish Tewari inaugurated the 20th International Conference and Exhibition on Terrestrial and Satellite Broadcasting – BES Expo 2014, today at New Delhi. Speaking on the occasion he said, “The last two decades have witnessed exponential growth in both the broadcasting and telecom sectors, giving rise to 800 plus television channels.”

    Commenting on the problems and challenges faced by the broadcasting sector due to competition for market share, he said the union cabinet has recently approved the proposal of the Ministry of Information & Broadcasting for a comprehensive regulatory framework in the form of guidelines for Television Rating Agencies in India. These guidelines cover detailed procedures for registration of rating agencies, eligibility norms, terms and conditions of registration, cross-holdings, methodology for audience measurement, a complaint redressal mechanism, sale and use of ratings, audit, disclosure, reporting requirements and action on non-compliance of guidelines. 

    Also speaking at the function, Ministry of Information & Broadcasting secretary Bimal Julka, said the ministry is planning to strengthen community radio movement in India, which would help in giving voice to the voiceless. 

    The BES expo is being attended by over 300 eminent broadcasters, media industry professionals and experts from India and abroad. The three day long expo will have deliberations on issues such as terrestrial broadcasting, future of TV, digitization, disaster broadcast systems for information dissemination, regulatory framework in broadcasting and other important issues related to the broadcasting industry. 

  • TV ratings: Ownership & FDI questions

    TV ratings: Ownership & FDI questions

    MUMBAI: To have foreign direct investment (FDI) in TV ratings or not, that is the question. And the recently-cleared TV ratings guidelines by the Cabinet Committee of Economic Affairs (CCEA) have brought this to the fore by their silence on this score. While announcing that the CCEA had given the go ahead to the ministry of  information and broadcasting (MIB) last week to the Telecom Regulatory Authority of India (TRAI)-recommended  guidelines for a regulatory framework for TV ratings in India,  minister Manish Tewari had this to say.

     

    “In so far as FDI is concerned we would make a separate reference to TRAI with regard to the quantum and need of FDI that should be permitted in ratings agencies. After the TRAI recommendations, the question of allowing FDI would be looked at. So as we speak, no FDI will be permitted in TV ratings agencies till we don’t have a recommendation on it.”

     

    Although the 2013 recommendations do not have any mention of FDI, it is noteworthy to point out that TRAI’s 2008 consultation paper on TV ratings does. The paper says that stakeholders feel that FDI should be restricted to 20 per cent in a TV ratings agency.  It also goes on to suggest that since no security issues were involved and little or no competition was prevailing (only two agencies existed at that time – TAM and aMap  and no regulation existed), that it would be okay of no if no FDI limit was imposed.  “Generally FDI encourages world class technology and international best practices,” TRAI had stated in the paper.

     

    So even as the TRAI was of the opinion that FDI was all right in 2008, in 2013 it gave the issue an ignore. Currently FDI limits for broadcasters are 100 per cent  for non-news and current affairs channels, for news channels 26 per cent, for cable TV 74 per cent, for DTH 49 per cent, for print 26 per cent for general news etc.

     

    Tewari stated that the question of FDI would be looked at after the TV ratings guidelines are notified by the ministry. Could the earlier recommendation of 20 per cent work as a guideline today? Or is the government going to be averse to FDI totally?

     

    Let us take a look at the other major guideline of cross holding in the TV ratings provider. The guideline states very clearly:  ‘No single company/legal entity either directly or through its associates or interconnect undertakings shall have substantial equity holding that is, 10 per cent or more of paid up equity in both rating agencies and broadcasters/advertisers/advertising agencies.’

     

    If one looks at the holding pattern of Mediametrie – the French ratings agency – which is soon to be announced as the Broadcast Audience Research Council’s (BARC’s) ratings partner,  France Televisions holds 22.89 per cent equity in it, TF1  10.8 per cent, Radio France 13.5 per cent and Union des Annonceurs 11.77 per cent.

     

    France Televisions in turn owns 49 per cent of TV5 Monde while AEF (formerly called France Monde) that runs France 24 owns 12.6 per cent of France Televisions. Quite a convoluted holding structure, but clearly one where broadcasters could be owning more than 10 per cent equity in the TV ratings provider.

     

    However, BARC officials are quick to clarify that it is BARC which will be providing the ratings and not Mediametrie. The latter is only a technology supplier and ratings are being outsourced to it. It owns no equity in the ratings company which is BARC. Hence, the question of more than 10 per cent equity ownership by broadcasters in Mediametrie is irrelevant and there will be no violation of TRAI’s guidelines, they emphasise.

     

    BARC, on its part is a non-profit organisation under section 25 of the Companies Act, with nominated representatives from the Indian Broadcasting Foundation, Indian Society of Advertisers, and Advertising Agencies Association of India. In a response to TRAI’s consultation paper, BARC had stated that even though the three may have conflicting interests in the ratings process, its articles of incorporation clearly state that “each has an equal voice in the design, and monitoring of the rating system, and in the administration of BARC, irrespective of the funding pattern.”

     

    TAM, on the other hand, has woes on both fronts as it not only does not comply with the FDI guidelines it also is has issues on the cross holding guideline as it is owned jointly by the WPP group and AC Nielsen. It is even listed on the WPP site as one of its companies.

     

    The key question that everyone is asking at the time of writing is whether TAM Media will move court against the guidelines, as they have come into force so many years after it has been operating in India with the equity and cross holding structures that it has. Or will it give up the fight and pack up just like Coca-Cola did in the seventies, when the government ordered it to reduce the FDI in it to 40 per cent.

  • 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. 

     

  • TV ratings issue listed for cabinet discussion on 9 Jan

    TV ratings issue listed for cabinet discussion on 9 Jan

    MUMBAI: The year 2013 saw quite a ruckus being raised about the ratings process being followed in the country. The Telecom Regulatory Authority of India (TRAI) in September 2013 came out with a recommendation paper after receiving suggestions from stakeholders on its consultation paper regarding the same.

     

    The paper got the ministry of information and broadcasting’s (MIB) nod in mid-November. Now it has been listed for consideration and approval by the cabinet committee on economic affairs on 9 January.

     

    Complaints about TV ratings in India have been aired for several years now. However, the TRAI released its recommendations only late last year on the way forward. In its paper it gave several suggestions to improve the quality of the ratings, one suggestion was that ratings agencies should register themselves with the MIB  and no one from its board of directors  should be involved in the business of broadcasting or advertising. They will have to give Rs 10 lakh as registration fee and produce a bank guarantee of Rs 1 crore.

     

    The minimum number of houses was recommended to be doubled to 20,000, to be increased by 10,000 till it reaches 50,000. 25 per cent of the viewership panel being monitored should be rotated every year. 

     

    If the ratings agencies failed to follow the guidelines they would be penalised, the severest being cancellation of the registration. 

     

    If the new ratings guidelines do get the cabinet’s nod, it means that the existing ratings agency TAM Media will have to invest anywhere between Rs 200-250 crore to scale up its panel and get itself registered with the MIB. The Broadcast Audience Research Council – which currently has the full backing of the broadcast, advertising and marketing industries and is racing to start its services by mid-2014 – will also have to follow the same course of MIB registration.

  • Advertisers vs Broadcasters: The battle for weekly TV ratings

    Advertisers vs Broadcasters: The battle for weekly TV ratings

    Aegis Group plc chairman India & CEO South East Asia Ashish Bhasin does not mince his words when he says. "In the next 24 to 48 hours many broadcasters are going to be getting cancellation notices from advertisers for spots booked with them. I have been getting SMSes from some of my key advertisers to move ahead with pulling off ads from TV."

    Adds Group M South Asia CEO & Advertising Agencies Association of India (AAAI) executive committee member C.V.L Srinivas: "Starting yesterday, cancellation notices have been going to broadcasters from advertising clients across the board."

    "Earlier broadcasters took the decision and now advertisers are doing so," adds IPG Media Brands CEO Shashi Sinha.

    The CEO of a channel confirmed that his network had received emails concerning 10-11 clients. "They have given us 72 hours to resolve the issue. If we fail to revert to weekly ratings all release orders for TV spots will stand cancelled," he says.

    That is the state of Indian media today. A battle royale is brewing – some call it the mother of all battles. The two warring parties – on one side of the battle line are the advertisers, and on the other are the seven broadcast TV networks.

    Group M's CVL Srinivas says advertisers will stay away from TV until they get proper weekly viewership data

    The decision Sinha is referring to relates to these broadcasters unilaterally ordering TV ratings agency TAM Media to change the frequency of reporting on their viewership from a weekly routine to a monthly routine. And to also report those details in absolute numbers, not in percentages.

    The seven broadcast networks have more than 100 channels under their umbrella, accounting for almost 50 per cent of daily TV viewing in India.

    Advertisers on the other hand have a war chest of Rs 14,000 crore which they pump into TV channels annually to promote their products and services to TV viewers who are their consumers. And almost 60-70 per cent of that goes into those seven broadcast networks.

    "I don‘t know see why there should be a need for anyone to have a confrontation at this time," expresses Bhasin.

    Aegis Group‘s Ashish Bhasin says advertisers would prefer to put money in the bank then advertise in this situation

    In fact, the broadcast industry has been increasingly flexing its muscles in recent times. While they are competing for viewership with each other daily, they have over the past four or five years increasingly bonded together, finding common cause on issues which are plaguing them. Whether it was on the cable TV carriage fee burden or self-regulation or digitisation, the broadcasters have stood united and lobbied hard to get their views heard and get decisions taken in their favour.

    One of the issues with the ad industry was the gross billing issue. This had been a practice for decades followed by ad agencies, and broadcasters for TV spots carried on them. The broadcasters – led by their association the Indian Broadcasting Foundation (IBF)- wanted the practice to be changed to net bills when the income tax department got after them to pay tax for ad agency commission (which was not being paid by them actually but was only mentioned in the bill). Ad agencies – AAAI – resisted this change even though the IBF continually urged them to do so.

    IPG Media CEO Shashi Sinha says advertisers are now taking their decision

    The IBF then put its foot down and said its broadcaster members would pull out all TV spots from TV channels. Ad agency resistance continued for a couple of days before it melted and agencies, the Indian Society of Advertisers (ISA) and the IBF hammered out a solution, which saw net billings becoming the practice, albeit with a legend of 15 per cent commission attached. To media observers, it clearly showed who had the power – broadcasters.

    "Agreed that broadcasters had their way in the net billings case because it related to a routine mechanical exercise which did not impact advertisers. It only concerned agencies and broadcasters," explains Bhasin. "But this time it is the advertisers themselves who are being impacted."

    Adds Srinivas: "And advertisers are saying, we will not advertise on those channels for which we don‘t have data. We as their agencies cannot plan on a monthly basis without data and hence are complying with our clients."

    Madison Media COO Karthik Laxminarayan cautions that aggression is not a solution

    "The key thing is that these days advertising comes in bursts of four to six weeks," points out Bhasin. "And if reporting is going to come after the period is over, how will advertisers monitor how their communication is faring with TV viewers? The world is moving to real time reporting of viewing habits. The advertiser has a right to know how the money he is spending is faring and whether it is getting him results. With the monthly reporting, it will not be efficient."

    "India and Vietnam are the only two nations which don‘t have a daily ratings system," adds Srinivas. "And now we are talking about going monthly. It is a retrograde step and it has been pushed through without any logic."

    Bhasin points out this time the broadcasters are a divided lot too. "While these seven broadcast networks are demanding monthly reporting and monitoring, the others are still going with weekly reports," he says. "How can you have two sets of practices in the same sector?"

    Vivkai Exchange CEO Mona Jain: Advertisers will blink first

    But the fact that the broadcasting industry is divided is going to work in the advertisers favour. "I don‘t know why there is this misconception that we cannot do without these 100 channels," says Srinivas. "This is a myth. We can do good media plans and reach our customers even without these channels. There are another 200 channels we can use. And they have said they are more than willing to do deals with us. DD could be a good option."

    He also believes that advertisers are going to start putting their money into other media outlets like below the line, print, and digital. "The floodgates are going to open for digital advertising. We have seen so many clients talking about using digital media over the past month ever since the TAM issue has broken out. And over the past 24 hours two clients have totally shifted from TV – one to a print plan and the other to a digital one. Agreed one of them is a niche player, but the advertising mindset is changing."

    Agrees Sinha: " What are the alternatives left for advertisers? Some might go to print, some might stay away or some might even come back to TV, no one knows what will happen until and unless both parties talk it out."

    Havas Media MD Mohit Joshi says it is a lose-lose situation for all

    Bhasin believes advertisers might also choose to totally do without advertising and straightaway add the money saved to their bottom lines "And in this tough economic times, it is better to have cash in the bank then spend it," he says.

    "It‘s true," points out Srinivas. "Advertisers would rather not advertise than advertise without any data. One or two months without advertising is not going to break any brands. There are even more efficient ways to reach customers than TV."

    What has left most media professionals confused is the hard stance taken by broadcasters. "I agree there could be genuine problems with TAM. But how is 30 days for reporting ratings better than weekly ratings when the data is not trusted by them? There is no logic to the broadcasters‘ stance. This is not a banana republic where you turn things on and off as it suits you," says Srinivas.

    ISA media committe head Hemant Bakshi will be playing a key role

    The question on the top of everyone‘s minds is: who is going to blink first and how long will the difference of opinion continue between broadcasters and advertisers? According to Bhasin, the basics of any business is "the client is always right. I think, within a week, better sense should prevail and things should get sorted out."

    Srinivas is not willing to speculate on the time period but says advertisers will stay off the TV channels until they start getting the weekly data they seek.

    "Obviously advertisers will blink first. Where will they get such a mass reaching medium," says a TV channel CEO. "They came running back to us on the third day during the net billings crisis when we blocked them out for two days."

    Vivaki Exchange CEO Mona Jain believes that "there will be some kind of a push back wherein it will be the advertisers who will have to compromise."

    Lulla says it is a private matter between broadcasters and advertisers

    Others highlight that the combative attitude should give way to finding solutions. "We, as an industry, should not think aggressively but progressively; and try to resolve it by having a healthy discussion," expresses Madison Media COO Karthik Laxminarayan.

    Havas Media India MD Mohit Joshi says that on a personal level, "I am sad that all of us together are not able to find a solution. All such issues are in a lose-lose domain. Nobody is actually going to gain. Broadcasters could end up losing revenue."

    Indiantelevision.com got in touch with ISA media committee chairman Hemant Bakshi to get the advertiser perspective and he said he would prefer not to at this stage.

    Ditto with broadcasters. Indiantelevision.com got in touch with Star India CEO Uday Shankar, Viacom18‘s Sudanshu Vats, Times Television Network CEO Sunil Lulla for their views. All of them refused to get into any discussion. "This is not a matter for public scrutiny. It is a private matter which has to be resolved between broadcasters and advertisers," says Lulla.

    For their individual sakes, hopefully they will do so soon.

  • “BARC would like to make the entire TV ratings process future-ready”: BARC CEO Partho Dasgupta

    “BARC would like to make the entire TV ratings process future-ready”: BARC CEO Partho Dasgupta

    At first appearance, Broadcast Audience Research Council (BARC) CEO Partho Dasgupta comes across as a pretty mild-mannered professional. But don‘t let that fool you: beneath the mild exterior is a steel-backed executive who has faced many a challenging task in diverse consumer industries and media where he has implemented large and small start up projects. Among this figure: Times Now, Future Media, The Economic Times and Times Multimedia. This apart, he also had an entrepreneurial stint where he co-founded a media company, apart from advising media startups and venture firms and their invested companies on brand strategies. So it is no surprise that the BARC board chose him to steer the setting up of a TV viewership monitoring system when there is a crisis of confidence around the only currency operational in India today – TAM Media.

    Indiantelevision.com‘s Seema Singh and Zeba Warsi spoke to Dasgupta to find out on what challenges await him, why he took up the job, and how he sees the road ahead.

    Excerpts:

    What are your feelings on being appointed the first CEO of BARC? What have you been busy with since joining it? And why did you take up the challenge considering the kind of brickbats that are being hurled at LVK now after years of doing the ratings? Who was it that coaxed you take it up?

    I am very happy to sit in the hot seat. Just before this I was managing the preschool business and the k12 school business growth of Educomp. I am looking forward to contribute to the broadcast industry, which I am very fond of. I love challenges – if you see my background none have been very easy roles. There was a time, then, when the joke was going around and similarly I am hearing now- whether one will ‘Bark or Bite‘ (pun intended). That is simply whether we will live up to all the hype surrounding BARC. It‘s all in good humour and I enjoy the challenge.

    You have worked with Times Now, Future Media and also worked with ET during their growth years. You also took a shot at entrepreneurship. How will you use that experience while working with BARC?

    I have been doing startups for the last 14 years – I love the whole drill – of blocking urls, looking for office, setting up new teams, new brands, processes and managing finances. I have also been on both sides of the table, as a broadcaster and also a client – so I guess I understand the pains of all sides. I am looking forward to go the whole hog again.

    What are the first few major tasks ahead of you taking over as the CEO?

    The single mandate is to design, commission, supervise and own India‘s Broadcast Measurement System. Towards this end, the establishment survey, covering approx 2.4 lakh individuals across India is already underway. This survey will give us details on television penetration in both urban and rural areas; viewership habits across all broadcasting modes, be it terrestrial, C&S, DTH, analog and digital platforms, and other developing and new platforms including newer modes of viewing; as well as viewer demographics. The study would become the basis of designing the rating panel.

    At the same time, separate RFPs for research and technology have been floated globally. Once the proposals are in, the technical committee will scrutinize all proposals in order to select the best in class research methodologies and technology. This will comprise senior experts from the industry representing all stakeholders. Experts in the technology domain are being co-opted to give us insights on the best technology available. So we are ensuring that thought leaders, domain experts and people with relevant skills are all on board from across our stakeholders to assess the best methodologies available globally.

    The group will look into all three parameters:

    • Technology of equipment across all broadcast mechanisms
    •  
    • Capture and analysis of data
    •  
    • Dissemination of data to users

    The global competitive bidding will ensure that India gets the best in class, cutting edge broadcast measurement system.

    Tell us about the structure of BARC, the members, representation and so on. Should there be equal representation from broadcasters, agencies and advertisers like it was initially envisaged?

    The broadcasters, agencies and advertisers are duly represented through their respective bodies namely IBF, AAAI and ISA. We are a neutral nodal body which will be working in a tandem with the three representative bodies. The members of each body find representation in the 10-member Board of BARC, which is already in place. The council will have its own management structure reporting to the Board.

    The tech committee has been working on certain presumptions? What are these and how do you see the tech committee contributing to making the BARC more relevant over the years?

    There are no presumptions that anyone of us are working on. Our one line mandate is to design, commission, supervise and own India‘s broadcast measurement system. And all of us are working to ensure that we get the best in class research and technology to deliver a product that would be the gold standard of broadcast research.

     

    BARC is striving to ensure the best of research methodologies combined with the best of technology to deliver world-class measurement.

     How do you envision the BARC office to be like – how many staff, how many people employed by it? How do you see this evolving? What will they be doing?

    We are evolving the structure. The mandate is clear and the structure will follow. We will be headquartered in Mumbai and we will be outsourcing a lot of professionals and services for specific functions.

    Tell us about the professionals you have hired so far from the industry…Any reputed names?

    We will be getting many professionals on board. Currently we have Mubin Khan as the vice president of BARC. (Khan has previously worked as senior AVP at Zee Network, media controller at Contract Advertising India Ltd., associate media controller at Mudra Communications Ltd. and was also vice-chairman of the Technical Committee of the IRS – the premier readership survey – conducted by Media Research Users Council among several other accolades.)

    What was the response to the RFIs like? Were there any surprising firms which have been observed on the list – like Infosys and TCS? Which other surprises popped up?

    The response has been very good across both research and technology companies. Global research and technology leaders have collected the RFP documents. I cannot reveal anything more at this point as NDAs have been signed with all firms concerned.

    How is the RFP process progressing? How many responses have you got? When do you expect to make announcements for the same?

    We haven‘t received any responses as of now. Separate proposals for research and technology have been sent to the various companies involved. As they go through the RFP, companies are raising certain queries, which are being formally addressed. The deadline to submit proposals is still more than a month away. The evaluation panel would scrutinize all proposals in order to select the best in class research methodologies and technology. This will comprise senior experts from the industry representing all stakeholders. Experts in the technology domain are being co-opted to give us insights on the best technology available. So we are ensuring that thought leaders, domain experts and people with relevant skills are all on board from across our stakeholders to assess the best methodologies available globally.

    What‘s the current status of the council? 

    The council is already operational. We are waiting for the RFP responses and talks are on with all bodies to better understand their concerns. The responses are expected next month.

    With the likelihood of TAM not being used as a barometer for the broadcast industry, it is quite likely that you will have to speed up your coming to market time to earlier than mid-2014? Do you think you are geared up to achieve that and what is the game plan and what signposts you will have to move forward to achieve this requirement quicker?

    The establishment survey is underway and should be out for us in December-January. After the panel discusses it, we may release it for public in February -March. The process is not an overnight one, it will take its due time and we don‘t want to rush. We are on course for a launch next year as originally planned

    Do you think what is happening to TAM is reasonable – the broadcaster back lash? What in your perception accelerated this? What is your advice to LVK and TAM?

    No comments.

    TAM has been accused of being ambiguous and lacking the required transparency. How do you plan to bring in transparency, accuracy and logical reasoning in the results?

    BARC is striving to ensure the best of research methodologies combined with the best of technology to deliver world-class measurement. To that end separate RFPs for research and technology have been floated globally. The evaluation panel will scrutinize all proposals in order to select the best in class research methodologies and technology. This will comprise senior experts from the industry representing all stakeholders. Experts in the technology domain are being co-opted to give us insights on the best technology available. So we are ensuring that thought leaders, domain experts and people with relevant skills are all on board from across our stakeholders to assess the best methodologies available globally.

    The baby is not born yet. It is too early to start speculating on how many siblings it should have. Besides, if others want to set up a rating agency, we are not stopping and cannot stop them. It is a free country.

     Do you think the ministry, TRAI and the industry as a whole prepared for a self regulatory mechanism of TV ratings? What kind of checks and balances are you going to put in to make everyone in the ecosystem comfortable?

    BARC is not a research agency. We will be working with specialists in research and technology to deliver cutting edge research. There would be adequate representation of various stakeholders in the process to ensure proper checks and balances.

    Do you think all categories will be content with BARC- GECs, news- English and regional and Niche? How will BARC achieve that? 

    It is obvious that we have to address the concerns of all stakeholders. And we are doing so through dialogues with all concerned. If anybody has a concern, they will obviously share it with their representative bodies, who are a part of the Board.

    Is the Indian TV universe more rural or more urban? How will you address issues of broadcasters who have seen a reduction of the TV universe under TAM‘s expansion into LC1 towns? Are you sure the results will not be the same as TAM‘s are currently?

    Let us await the results of the establishment survey before commenting on this.

    How will you address and cover a continually digitising India in terms of cable TV rolling out in phase III and phase IV of the cable TV universe? As well as expanding DTH homes…

    It is too early to comment on this. However, as mentioned earlier, we have a mandate to design, commission, supervise and own India‘s broadcast measurement system. This system will have to be inclusive, covering all aspects of our country‘s heterogeneity. We believe digitisation will actually make it easier for us.

    What kind of tech are you looking at putting in place? Stationary intrusive people meters which involve users to manually put in their inputs by pressing their remotes? Or more evolved ones which senses people‘s presence in the room via advanced tech? Or mobile hand held devices which have similar capabilities? And how will you incorporate tech which can be integrated with the STBs? In the next five years India will probably have about 100 million of these?

    It is too early to comment on the kind of technology, given that the RFP process is underway. Having said that, let me state that BARC would look at all technologies available. We would like to make the entire ratings mechanism process future-ready.

    How will the ratings system be funded annually? What kind of ratings are you hoping to deliver – overnight or weekly or monthly?

    BARC is a non-profit organisation under Section 25 of the companies Act, 1956. The various industry constituents would fund the research. All users of data and analysis will subscribe and pay for the same.

    TAM used only 8150-10,000 households for its rating system which was perceived as not being adequate to represent the population of 15.5 crore TV households in India. Tell us about your survey sample, how many homes, which markets, etc.

    The final contours of the panel size and dispersion will be decided only after the establishment survey is complete and the proposals studied. As mentioned earlier, the establishment survey is covering approx 2.4 lakh homes across urban and rural India.

    When the decision of setting up the council first came up in 2008, it was a joint venture only between IBF and ISA. Then how did AAAI enter the venture?

    BARC represents the entire industry. Hence, it made eminent sense to have all stakeholders on board.

    The initial investment for setting up BARC was Rs 300 million? Has the investment gone up? If yes, by how much? How was the breakup ratio between IBF, ISF and AAAI decided?

    No Comments

    Self-regulation mechanism has worked in some cases, and hasn‘t in some. How do you think BARC will envisage this mechanism in its functioning as opposed to TAM?

    BARC has representation from all stakeholders of the industry. It thus has an in-built mechanism.

    There is an accusation that “Self-regulation of television rating system in India has failed to take off as BARC has not been able to take any credible action on the recommendations made by TRAI and by Dr Mitra‘s Committee. What did the report say? Are the accusations true? How much has BARC worked on it?

    I have taken charge just this month, and the BARC team has also been just set up. We shall take up the issues as they come. Right now, the focus is on the RFPs.

    Following the report, BARC had also set up in-depth research team to study audience measurement system, particularly BARB, the UK‘s audience measurement system, how has that translated in your current structure? Are there any comparisons to be drawn between the two?

    BARC and its stakeholders have been studying the various models and methodologies adopted by broadcast measuring companies and organisations across more than 30 countries across the globe. And we will certainly look at incorporating the best research methodologies and technology available.

    Having said that, India has a lot many complexities that are unique to our country. Be it in the demographic or socio-cultural heterogeneity, the linguistic, geographic and economic disparities or even the hours of accessibility to electricity, any study done in India has to take cognizance of each of these unique complexities, and many more.

    BARC plans to be very robust. Does your set up involve putting in place a complaint mechanism system? If yes, please elaborate.

    For any organisation that is in the service industry, a robust feedback mechanism is a must. BARC is an industry body representing all constituents. There would definitely be continuous dialogue between BARC and its constituents. And this would also incorporate formal feedback mechanisms.

    We are aware that history has shown us that the market can only support one rating currency. But even as recently as yesterday, outgoing I&B secretary Uday Kumar Varma expressed reservations about a monopoly of ratings. He also said that maybe there should be more than one rating system to provide competition in the business, which will also result in enhancing the credibility of ratings. TAM which earlier was the sole rating system has allegedly goofed up and was highly criticised. What is your reaction to this? And why should BARC enjoy monopoly of ratings?

    The baby is not born yet. It is too early to start speculating on how many siblings it should have. Besides, if others want to set up a rating agency, we are not stopping and cannot stop them. It is a free country.

     

  • Indian TV B’casters: ‘TAM’ing TV ratings

    Indian TV B’casters: ‘TAM’ing TV ratings

     Does the Indian TV broadcast industry want TAM? In one word, the answer is No. Definitely not in the form and manner it is monitoring TV viewership in India. Definitely not the kind of viewership numbers it has been spewing out for them week by week. The major Indian TV broadcast networks have already shown their utter disgust and disregard for its TV ratings by closing their checkbooks on TAM.

    On almost every front, the Indian TV broadcasters – through the IBF – have been flexing their muscles and showing that they mean business. And they have been sorting out troublesome issues: like striking a wage accord with TV industry technicians; setting set up a self-regulatory mechanism when government wanted to muzzle the media; getting the advertising industry to agree to net billing after the government demanded taxes for the gross advertising agency bills it used to make payments on.

    But one of the most vexatious issues it has been grappling with is the TV rating‘s one. And now that the lights have been put out on TAM, what now for the broadcast industry? What are the options before it? Let us take a look at a couple of them:

    *For one they can continue with TAM Media. However, they can give TV ratings a hiatus for a couple of months. It‘s quite possible the chaos that is happening on account of analogue shutoffs and digital set top box switch-ons, will settle down and the ratings will stabilise in that period. They can also dialogue with TAM and ask it to get back to basics and do an establishment survey once again (if possible), represent the peoplemeters appropriately in power-lit areas in LC1, rather than in power-dark areas. And finally, take a closer look at the entire process of churning out ratings that happens every week, through a committee constituted for the very purpose.

    There is a possibility that we could end up with a period of no TV ratings in India if issues are not sorted out by all concerned. How long that period will be is not clear (some say it could be until BARC comes up), but broadcasters will need to get advertisers and agencies’ support for their decision. So far, both have said they are not comfortable with ratings going away, and have spoken up for TAM.
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    With all major B‘casters unsubscribing from TAM TV ratings, only time will tell if the viewers‘ true choice can be reflected with the emergence of BARC

    * Or if this is not working out forget that TAM exists, cut off its blood supply, and watch it gradually bleed and die. Come up with a viewership metric that works in the interim for all concerned – broadcasters, advertisers and agencies – and allows the business of communicating brand messages through television for a fee to continue.

    The broadcast industry is torn between the two options. The first has been done before between October and December 2012 and it was painless for all concerned and allowed TAM to continue its existence in a profitable manner. 

    The second option, while it appears the easier one to see through, comes with its set of challenges.

    The Broadcast Audience Research Council (BARC)‘s TV ratings system seems nearly a year away and could take longer to get to the levels of coverage TAM is providing now. Unless, under the leadership of Puneet Goenka and Partho Dasgupta, BARC manages to do an Ambani on the system and get the establishment survey, the constitution of the sample, the installation of the meters, the development of the software, the stabilisation of the findings and everything down stream thereof completed in super record time. Most advertisers and agencies have been optimistic about BARC.

    Industry can learn some lessons from the experience of Turkey in 2011. Turkey‘s broadcasters and the industry shut down the ratings service run there by AGB Nielsen in late December 2011, amidst allegations of corruption, which were denied by the ratings service provider. The industry body – The Television Audience Research Committee (TIAK) – prematurely severed its contract with AGB and urged TNS – part of the WPP Group‘s Kantar Research – to set up an alternative ratings system which finally got going in May 2012 with a 1000 peoplemeter panel, as against 2,500 people meters earlier.

    Industry can learn some lessons from the experience of Turkey which faced a ratings blackout in 2011. During the blackout TV ad rates and prices were determined by using average ratings from the month before the shutdown, combined with monthly share performance from the whole of the year.
    _____****_____

    In the interim, adage.com reported in March 2012 that life went on for Turkish advertisers, agencies and broadcasters though the “TV-buying system has since been in shambles. Without reliable new-audience measurement data, prices have been determined by using average ratings from the month before the scandal erupted, combined with monthly share performance from the whole of 2011. The industry is working to regain media agencies‘ and advertisers‘ trust.”

    Agreed, we are not questioning the ethics of TAM in India, though many have hurled allegations against it. There is a possibility that we could end up with a period of no TV ratings in India if issues are not sorted out by all concerned.

    How long that period will be is not clear (some say it could be until BARC comes up), but broadcasters will need to get advertisers and agencies‘ support for their decision. So far, both have said they are not comfortable with ratings going away, and have spoken up for TAM.

    With reason. Two or three months without TAM mean they will have little data to support a TV advertising expenditure between Rs 3,600-4,200 crore. That‘s not an amount you can sniff away.

    Hence, all three will have to come to the table and agree on a performance metric to justify the expenditure and offer some accountability. Could the Turkish media industry‘s interim solution during the TV ratings shutdown there be adapted to work in India?

    Broadcasters are slated to huddle very soon (either this week or next) to get some consensus on which route they will take. Some broadcast CEOs have been travelling and hence have not been able to get together.

     

  • 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.

  • TV ratings: NBA wants independent audit

    NEW DELHI: Though the Broadcast Audience Research Council (Barc) is expected to give out its first report by March 2014, the Government has been urged by the News Broadcasters Association (NBA) to set up a third party audit.

    Information and Broadcasting Ministry sources told indiantelevision.com that while it has been following up with Indian Broadcasting Foundation (IBF) for constitution of a transparent and credible audience research mechanism, the NBA has written to the Government for setting up an independent third party audit by a reputed agency to evaluate and measure the TAM system.

    Meanwhile, the Ministry had asked the Telecom Regulatory Authority of India (Trai) in December last year to make recommendations on comprehensive guidelines/accreditation mechanism for agencies studying television rating points to ensure fair competition, better standards and quality of services.