Government reviews multi-agency ratings plan as broadcasters push back

New Delhi: The I&B Ministry is weighing broadcaster objections to its draft changes that would allow multiple TV ratings providers, with officials telling BestMediaInfo.com they will address conflict-of-interest concerns in the cross-holding norms. 

The Indian Broadcasting and Digital Foundation has opposed the move, signalling that BARC remains the sole currency for now, even as TAM explores a multiscreen measurement comeback.

Sources in the I&B Ministry said the government is examining concerns around proposed relaxations in cross-holding norms, raising questions of conflict of interest.

“Some of the points raised by broadcasters are valid, especially around conflict of interest. While we are looking at their fears around impending advertisers’ control on measurement, we are cognisant of the fact that the current system is skewed towards broadcasters, even on paper. We will soon resolve this,” said a government source.

Soon after the government put up the draft amendment to the TRP guidelines, seeking stakeholder views on relaxing entry barriers for rating agencies, TAM India said it is preparing a comeback in the measurement business after more than a decade. 

The firm that delivered television viewership before being replaced by BARC India is planning multiscreen measurement with various partners.

“TAM India has already been providing data services to select DPOs, including Tata Play, for over seven years. We manage and process the return path data (RPD) for these DPOs. There are a few more digital players exploring the measurement business in the Indian market. It is all at a discussion and collaboration stage as of now. Having said that, it is too early to say how it will shape up as a measurement body,” a TAM India spokesperson told BestMediaInfo.com earlier.

For the record, TAM cannot currently enter the linear television measurement business owing to a contract with BARC India (with whom TAM India created a joint venture to manage its people meters). 

BARC holds a 51 per cent stake and TAM a 49 per cent stake in the joint venture, Meterology Data Pvt Ltd (MDPL). TAM India has reiterated its commitment to the JV, which is responsible for all data-related matters on viewership.

“The broadcasters focused their opposition on TAM’s two prospective partners - DPOs and digital players. BARC itself had explored such partnerships in the past, especially with DPOs for the RPD mechanism. However, the attempt fell through because DPOs were seeking a reasonable amount in exchange for data sharing. If TAM is apparently offering DPOs an ownership stake in exchange for recurring payments, it becomes a bone of contention. The IBDF perceives cross-holding restrictions as the ultimate weapon to protect BARC as a single currency,” said an industry veteran on the condition of anonymity.

The confusion within broadcasters

The response from IBDF to the proposed draft amendments came after considerable back-and-forth. 

On September 2, BestMediaInfo.com reported that the apex body was set to oppose the government’s move. 

Soon after that report, industry sources indicated there was a divided house within the IBDF and that it might not respond to the consultation at all.

Notably, Zee Entertainment had already responded to the consultation in July, urging the government to involve the Competition Commission of India in the review of the Policy Guidelines for Television Rating Agencies. 

Ministry sources said the company sought mandatory antitrust vetting both at entry and for any subsequent change in ownership or control of a ratings provider.

In its submission, Zee backed strict ownership firewalls and sought clear definitions on how broadcasters, distributors, advertisers and agencies may participate in setting up and running ratings firms. 

The company warned that concentrated ownership could distort trading, skew carriage negotiations and hurt smaller players as television and digital viewing converge.

On October 6, IBDF’s reply followed along similar lines.