IBF hopeful to reach compromise with Trai on ad-cap regulation

In talks with I&B ministry, Trai suggesting that reduction in ads to be phased in rather than implemented immediately

The Indian Broadcasting Foundation (IBF), association of the broadcasters, is hopeful that the industry will reach to a compromise with the Telecom Regulatory Authority of India (Trai), the sector regulator, on the issue of standardised ad duration for all channels.

Trai’s notification on Standards of Quality of Service (Duration of Advertisement in Television Channels), has maintained standardised ad duration at 12 minutes per hour, while many broadcasters have been flouting this by showing even over 25 minutes of ads on TV.

Manjit Singh, president, IBF and CEO of Multi Screen Media said that IBF understand that the regulation is in the viewers’ interest.

“We are not against it (sic). Our only issue is that it works very well when you have subscription revenue. We are yet to see the full benefits of digitisation to give us subscription revenues, which will counter for the loss that occur in advertising revenue,” he told told Business Standard.

He said that IBF is in talks with the Ministry of Information and Broadcasting and Trai suggesting that the reduction in ads to be phased in rather than implemented immediately.

“I think we all understand that we have to move to this in a fairly defined period of time. It can't be open ended and I think we are all committed in the industry to do that across genres,” he added.

On the genres, which will be affected badly, Singh said that news, regional, music and Hindi movies genres will suffer the most if the regulation implemented immediately.

“But everyone has to do this all together. You have to do it across genres and I think as an industry we have to be committed to make a move in a defined time period and I think the Ministry and Trai will be supportive of that. I think we can have a reasonable dialogue on this and come to a reasonable solution. I am not concerned about coming to a compromise,” he opined adding that IBF is not against the principal at all.

Incidentally, Manish Tewari, Minister for Information and Broadcasting, while speaking at the 4th CEO Roundtable on Broadcast, organised by the Confederation of Indian Industry (CII) in New Delhi earlier this week, had said that the government could have strictly enforced the rule if it wanted but has been sensitive to the industry's problems in this regard.

He had said when these regulations came out he understood the concerns of the broadcasters that till the digitisation process completes, subscriber revenue starts kicking in and new revenue model there were difficulties.

Tewari added he had asked senior officials of his ministry to take up the matter with Trai and find a solution.