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It’s a Catch-22 situation for broadcasters – on the one hand, they can’t do without the ad breaks, which are the primary source of revenue, and on the other hand, there is the apprehension over losing out on viewers, who might switch to another channel with the ad breaks.
Taking note of the frequent and long ad breaks, the Telecom Regulatory Authority of India (TRAI) issued a 10+2 cap on advertisements, which meant that no broadcaster shall carry advertisements exceeding 12 minutes in a clock hour in a programme. The clock hour commences at 00.00 of the hour and ends at 00.60. Any shortfall of advertisement duration in a clock hour shall not be carried over. Advertisements included not only the commercials, but also the channel’s own promotions for its shows or for the channel per se.
Understandably, broadcasters have come out strongly against this ruling and have taken the matter to court. In the latest development, TRAI issued a notice to broadcasters two weeks back, asking them to provide reasons for not implementing the ad cap during their shows. The broadcasters were given time till March 10, 2013 to send in their replies. This deadline has now expired and the broadcasters’ replies are awaited.
Amid the race to meet the March 31, 2013 deadline for DAS Phase II, coupled with hike in duty on set top boxes, the broadcast industry is in a state of flux.
Talking to exchange4media Man Jit Singh, CEO, MSM and President, IBF said, “TRAI is looking into the 10+2 ad cap issue, which we believe is certainly relevant and should be looked at, but in context of digitisation, because until we get revenues from subscription, we have to continue relying on advertisements. It’s just a question of timing. At the end of the day TRAI and us broadcasters have to work together.”
To know more, watch the video…
IBF Prez Man Jit Singh on TRAI’s 10+2 ad cap
Taking note of the frequent and long ad breaks, the Telecom Regulatory Authority of India (TRAI) issued a 10+2 cap on advertisements, which meant that no broadcaster shall carry advertisements exceeding 12 minutes in a clock hour in a programme. The clock hour commences at 00.00 of the hour and ends at 00.60. Any shortfall of advertisement duration in a clock hour shall not be carried over. Advertisements included not only the commercials, but also the channel’s own promotions for its shows or for the channel per se.
Understandably, broadcasters have come out strongly against this ruling and have taken the matter to court. In the latest development, TRAI issued a notice to broadcasters two weeks back, asking them to provide reasons for not implementing the ad cap during their shows. The broadcasters were given time till March 10, 2013 to send in their replies. This deadline has now expired and the broadcasters’ replies are awaited.
Amid the race to meet the March 31, 2013 deadline for DAS Phase II, coupled with hike in duty on set top boxes, the broadcast industry is in a state of flux.
Talking to exchange4media Man Jit Singh, CEO, MSM and President, IBF said, “TRAI is looking into the 10+2 ad cap issue, which we believe is certainly relevant and should be looked at, but in context of digitisation, because until we get revenues from subscription, we have to continue relying on advertisements. It’s just a question of timing. At the end of the day TRAI and us broadcasters have to work together.”
To know more, watch the video…
IBF Prez Man Jit Singh on TRAI’s 10+2 ad cap
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