I&B Ministry calls for alternative ratings body

IBF, AAAI, ISA give status check to ministry, asked to speed up process

The Information and Broadcasting Ministry on Tuesday called on broadcasting and advertising associations to get an update on the formation of an alternative TV audience research body, Broadcast Audience Research Council (BARC). It is learnt that 10-12 representatives from the three stakeholders — Indian Broadcasting Foundation (IBF), Advertising Agencies Association of India (AAAI) and Indian Society of Advertisers (ISA) — were present to give the I&B secretary a status check on the formation of BARC.

It is understood from ministry sources that the three stakeholders have been asked to expedite the formation of BARC, but it has not specified any timeline to do the same.

There are a few issues between the broadcasters and advertising bodies, and the main one is who will make the investment. Industry sources said investments to the tune of Rs 650 crore were required for setting up BARC. The issue is contentious because the industry has been unable to reach any consensus on who would make the investments.

Last week, IBF president Uday Shankar had told Business Standard that one of the unresolved issues is that if additional funding is required for the functioning of BARC and if the company cannot raise debt, some of the stakeholders (advertising bodies) do not want to put in equity and at the same time do not want to dilute stake. He had also blamed advertising bodies for delaying the implementation of BARC as an alternative to TAM.

AAAI president and Leo Burnett chairman on the Indian subcontinent, Arvind Sharma, said there was a meeting on August 10, wherein both AAAI and ISA boards had approved an agenda and were waiting for IBF to approve it.

The talk about formation of an alternative currency to TAM has been on for five years, but following the NDTV-TAM issue, the pressure to set up BARC has increased from the ministry and the three stakeholders are believed to be working overtime to sort their differences.

BARC was set up after a tripartite agreement between the IBF, AAAI and ISA. IBF would contribute 60 per cent equity stake, while of the remaining 40 per cent, 20 per cent each would come from AAAI and ISA.