Broadcasters apprehensive over proposed govt watchdog for TV ratings

The government has plans to form a broadcasting regulator which will cater to TV channel registrations, licences and ratings. The industry is not amused

The Broadcast Audience Research Council (BARC), an organisation set up by advertisers to oversee television audience measurement and ratings for broadcasters, will most probably be in place by next month. However, the government has decided to form a different broadcasting watchdog which will cater to registrations, licences and ratings. So is it time for the TV industry to get its act together?

At a conclave in Mumbai on 11 June 2010, LV Krishnan, CEO, TAM Media Research, said, "In our last meeting with the ministry last week, they did mention forming of a broadcasting body like TRAI to monitor the ratings and licences given to channels, in the near future. We need to work faster as the government has (alternative) plans."

TAM has certain guidelines to ensure that its sample TV ratings are measured accurately. It is in favour of working with the government as long as the intervention isn't too blatant.

"The government can surely help if they don't take an anti-industry stance. It can play a vital role in aiding or at least helping in reducing the taxes imposed on the expensive equipment required for measurement," said Mr Krishnan.

Does the industry feel that the government's intervention is required? "Actually there is a vested interest of the government (in intervening in the ratings of TV channels). DD believes that whatever ratings are done by TAM are under-measured," said Paritosh Joshi, CEO of Star CJ India. Sam Balsara, chairman, Madison World, agrees, "By regulation we mean self-regulation and not government intervention. Our fear is that if government gets involved, vested interests will also be involved because many members of Parliament also own channels."

The industry's inability in creating a responsible body to cater to ratings and licences has been hampering its own growth. The advertising industry is an almost Rs22,000-crore market whereas the TV ad market is only about Rs9,000 crore.

What is the main reason? "As far as ad agencies and advertisers are concerned, these kinds of conflicts are not persistent. And more than anything else the TV industry is dependent on advertising more than ratings," said Mr Balsara.

Broadcasters still argue that ratings done by TAM and other agencies are accurate because the goal is clear-measurement of viewership to help them work towards creating better content. As Mr Krishnan said, "As complexity of measurement increases, industry involvement also becomes essential. If the industry comes along and works hand-in-hand, we can work in a much better fashion." Unfortunately, the industry doesn't have a plan or blueprint of what the solution can be. Coming back to where we started-is government intervention really required?


This appeared on Moneylife's website on 14 June 2010.