10+2 ad cap: B'casters relieved post HC's order, but expect a quick review
While some b'casters consider the order as an economical relief, there are others who feel it will be incorrect to think there will be financial gains, speedy justice is what all are looking for
The Delhi High Court has given broadcasters some relief in the 10+2 ad cap case. In an interim order in the case, the High Court has asked Telecom Regulatory Authority of India (TRAI) not to take any coercive action against the news broadcasters for not following the 12-minute mandated ad cap. The broadcasters will need to send their weekly advertisement data to TRAI from now onwards.
The order was passed following a writ petition filed by the broadcasters on December 17, 2013 to get the ad cap reviewed quickly. The next date for hearing in the case is March 13, 2014.
However, broadcasters feel that implementing the 10+2 ad cap is only viable when digitisation pans out in the entire country.
CEO of a leading news channel on condition of anonymity said, “We have been saying this since the beginning that implementing the ad cap is not possible until we get the benefits of digitisation.”
He further said, “It is difficult for news broadcasters to carry 12 minutes of advertisements because we have more and more of retail advertisers and they cannot afford high ad rates.”
When asked to comment o on the High Court directive, he said, “It’s an economical relief and we will gain some extra revenue for the coming quarter.”
While some broadcasters that exchange4media contacted refused to comment on the case since the matter is sub judice, there are others who feel that the ad restrictions will kill the entire news broadcasting sector as they only sell the inventory.
Another leading broadcaster on condition of anonymity said, “The Court has given a stay and the hearing will start in March next year, but there is nothing to celebrate and nothing to lose. The lawyer only discussed about TRAI’s jurisdiction and fair economy of the industry.”
He further said, “I don’t consider it as a relief; if individual channels feel that during this period of time they can make money, then it is wrong. Business is bad right now, digitisation hasn’t panned out yet, television measurement tool is not in place and with the Lok Sabha elections round the corner, no corporate will want to invest. So, we all are looking for speedy justice in the ad cap case from the Court.”
