I&B ministry issues fresh norms for TV rating agencies

Firms can't hold more than 10% in rating agencies and broadcasters or advertising agencies

The information and broadcasting (I&B) ministry on Friday released the guidelines for television rating agencies, giving these 30 days to comply with the new norms. On January 9, the Cabinet had approved a policy to regulate guidelines for these agencies in India.

Television rating agencies will now have to register with the ministry within a month and comply with the ownership pattern, according to which companies can’t hold more than 10 per cent in both rating agencies and broadcasters or advertising agencies.

Television rating points, or TRPs, are often used as a parameter by advertisers before selecting a channel or programme to air their ads.

Rating agencies have often been criticised for their small sample size and lack of transparency and the I&B ministry has asked agencies to increase the minimum panel size to 20,000 panel homes. Agencies will have to raise the panel home size by 10,000 homes every year until it reaches 50,000 panel homes.

When contacted, TAM Media Research, India’s largest TV rating agency, refused to comment on the matter.

According to sector experts, TAM will be the most affected by the guidelines coming into effect in the next 30 days because TAM’s sample size stands at less than 10,000 panel homes and it does not comply with the new cross-ownership norms. The latter is more pressing since TAM has only 30 days to comply with the new guidelines, which forbid a single company or legal entity either directly or through associates from having 10 a per cent or more of paid-up equity in both rating agencies and broadcasters/ advertisers/ advertising agencies.

TAM India is a 50:50 joint venture between AC Nielsen and Kantar Media Research. The latter is part of the Martin Sorrell-led WPP Group, which also operates a number of media agencies and advertising houses across the globe, including India.

GroupM, the largest media agency group in India (with billings to the tune of Rs 1,000-1,200 crore in 2012), is a part of the WPP Group as are leading creative agencies such as Ogilvy & Mather, JWT and Bates. In an interview with Business Standard late last year, Kantar chairman and chief executive officer Eric Salama had revealed his company would be interested in the ratings business in India only as a joint venture with Nielsen as is the arrangement currently.

The issue of cross-media ownership (in the context of TAM) was raised earlier as well when New Delhi Television Ltd (NDTV) had filed a case against TAM India’s promoters in the New York Supreme Court in July 2012.