TRAI proposal to reduce ad time upsets TV channels

The Telecom Regulatory Authority of India has proposed to regulate the duration, frequency, timing and audio levels of advertisements. TRAI, in its paper, says that free-to-air channels should not carry ads exceeding 12 minutes per hour (inclusive of 10 minutes of commercials and two minutes of self promotions) and pay channels not over six minutes of ads an hour. TRAI also says that for live telecast of sporting events, ads should only be carried during actual breaks. These rules already exist but are often breached, reports said. The regulator says that ads should not in any manner interfere with the programme use of lower part of screen to carry captions, static or moving alongside the programme. However, pay channels are unhappy with the TRAIs proposal as they feel that their primary source of revenue would take a hit. Advertising contributes about 60% to the revenues of paid channels. Also, due to leakages in the broadcasting system, pay channels depend more on advertising than subscription revenues, reports said. "TRAI has no business to meddle with the duration of ads. The objective of each channel is to make profits and it should work on the principles of free market," reports said quoting Paritosh Joshi, CEO, Star CJ and Director, Indian Broadcasting Federation. If and when the proposal is accepted, it remains to be seen if TV channels would hike their rates to make up for the dip in revenues.