NBA welcomes I&B Minister's statement on extending ad cap date

If the ad cap is implemented at this stage, the revenue loss across news channels would be in excess of Rs 500 crore, forcing cuts of at least that amount in costs if channels are to survive

BestMediaInfo Bureau | Delhi | August 21, 2013

News Broadcasters Association (NBA) has welcomed the recent statements of Manish Tewari, Minister for Information & Broadcasting, that news channels must get an extension on the 12-minute ad cap, “at least till the final phase of digitisation is complete”. NBA is happy that it has been understood that the industry is in a dire financial condition, like many other sectors of the Indian economy, with ad revenues being slow, carriage fees continuing to be burdensome and credible subscription revenues being out of sight.

In such a severe economic scenario and on the ground, a forced curb on advertising will have a catastrophic impact on revenues of news broadcasters forcing many to take drastic steps that would have an unavoidable, adverse impact on quality of service and jobs. It is estimated that if the ad cap were indeed implemented at this stage, the revenue loss across news channels would be in excess of Rs 500 crore, forcing cuts of at least that amount in costs, if channels have to survive.

The NBA agrees with the I&B Minister that the 12-minute cap on advertisements per clock hour be kept in abeyance and such restrictions “kick in only when the benefits of digitisation are apparent so that broadcasting companies can make good their advertising losses with subscription fee”. NBA also urges that the burdensome and crippling nature of carriage fees which have no business to exist in a truly digitised environment is also addressed urgently.

NBA has requested MIB and TRAI to come out with a final notification keeping the ad cap for news channels in abeyance as above, in the next 10 days as any delays beyond that will have an irreparable impact on the industry.

Info@BestMediaInfo.com

Info@BestMediaInfo.com