I&B proposes to amend TV rating rules, invite more players besides BARC

The Union Ministry of Information and Broadcasting has proposed amendments to rules for TV rating agencies that will allow for more players apart from the Broadcast Audience Research Council (BARC) to enter the market, The Hindu reported. 

In a draft released on Wednesday, the ministry has proposed significant amendments to the Policy Guidelines for Television Rating Agencies, originally issued in 2014, to democratise the TV ratings space and better reflect changing viewing patterns, with audiences increasingly consuming content through smart TVs, mobile apps, and streaming platforms. 

The present Television Rating Points (TRP) mechanism does not adequately capture the full spectrum of viewership, potentially impacting broadcasters’ revenue models and advertisers’ planning, the ministry said. According to The Hindu, currently, India has an estimated 230 million television households, but only around 58,000 people meters are deployed – a sample covering just 0.025 percent of TV homes.

The Ministry has also proposed easing cross-holding restrictions that currently bar broadcasters and advertisers from investing in rating agencies, arguing that this change will strengthen infrastructure and trust in the system. As per this Mint report, the Ministry said that any company registered in India under the Companies Act, 2013 could seek registration for providing television rating services, as long as it doesn’t undertake consultancy or advisory roles, which would lead to a potential conflict of interest with its main objective of rating.

The Ministry has invited suggestions and feedback from stakeholders and the public within 30 days of the draft’s release.

The move was welcomed by industry players, stating it will lead to a more liberalised ecosystem and improve accountability. 

“This proposed amendment suggests a shift towards a more liberalised ecosystem and increased competition could improve accountability and consumer trust," Kaushik Moitra, partner, practice lead – regulatory, IP, and TM at Bharucha & Partners told the Mint.

However, experts quoted in the Mint report cautioned that a lack of a uniform metric applying to all rating agencies may lead to confusion and will need monitoring. Some also warned that easing entry barriers could allow any company to launch a TV rating agency and push its own interests. Others noted that DTH operators like Airtel TV and Tata Play already have viewership data that TV rating agencies publish and they could now monetise it themselves. They also warned that the new rules might let broadcasters create their own rating units and declare themselves top-ranked, which could cause confusion.

Newslaundry had extensively reported on the ‘TRP scam’ in 2020, which highlighted rigged television ratings and exposed a broken news model driven by advertisers. You can read our coverage here. Also, to understand the TRP scam better, you can watch our explainer here.

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