Broadcasters finally accept Trai's 12 minute ad cap mandate

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The ad cap scrap has been put to rest. Both news and general entertainment channels (GECs) have accepted that the amount of free commercial time that will be allowed per hour will be 12 minutes from 1 October.

The agreement was worked out today with the Telecom Regulatory Authority of India (Trai) on the basis of a commonly accepted formula submitted by the broadcasters.

Thus, with immediate effect, all flagrant violations of ad time by channels that go up to thirty minutes per hour have to stop.


From 1 July, news channels will reduce advertising to 20 minutes per hour while GECs will cut this down to 16 minutes.

This will be in force until 30 September, following which the 12-minute rule will be enforced from 1 October.

The ad cap does not stipulate any separate time for commercial advertisements and for the promotion of the television channel’s own programmes, Indian Broadcasting Foundation Secretary (IBF) General Shailesh Shah told indiantelevision.com.

He said the formula had been worked out by a five-member committee representing the broadcasters and was then submitted to TRAI.

The five members of the committee were K V L Narayan Rao (News Broadcasters Association president & NDTV executive vice-chairman), Puneet Goenka (Zee Entertainment CEO), K Madhavan (Asianet Managing Director), M K Anand (Disney UTV Media managing director) and Shah himself.

Meetings were held with TRAI officials headed by Principal Advisor N Parameswaran over the past few days, with a final meeting this morning.

Earlier this month, the regulator had issued a notification asking television channels to stick to the advertising limit. The regulator had issued the quality of service norms in May 2012 as well.

But this was disputed by the TV channels which had also challenged the jurisdiction of Trai in this regard before the Telecom Disputes Settlement & Appellate Tribunal (TDSAT).

It is learnt that broadcasters were huddled in meetings for the past two days, as they feel that cutting on ad time will affect their revenues in the long run.



Read full story: Indiantelevision.com > News Headlines > Broadcasters finally accept Trai's 12 minute ad cap mandate
 
I hope people realise that this will cause channel subscription prices to go higher.
Less Ads = Less Revenue
So the subscriber will have to cover costs.....
 
yes its true.

but in india there are million of viewer

and after digitization subsciption revwnue will expected to increse after cable guys report true subsciber base
 
mussu-100 said:
I hope people realise that this will cause channel subscription prices to go higher.
Less Ads = Less Revenue
So the subscriber will have to cover costs.....

Less Ads = Less Profit Margin = More happy subscribers.
On the long run both the service provider and the subscribers will be happy. Remember in the 90s we had mobile phone tariffs @ some 10Rs/min and now it is 0.3Rs/min. Similarly DTH will also evolve to cheapest entertainment resource.
 
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