NBF requests BARC to not terminate End User License Agreement with news channels

News Broadcasters Federation (NBF) has written to BARC (Broadcast Audience Research Council) requesting them to not terminate the End User License Agreement (EULA) with news channels for non-payment of BARC fees.

The said EULA in Claus 8(ii) says, “The payment terms applicable for the License Fee shall be set out in the SOW. Subscriber understands and agrees that in the event of delay in payment of the License Fee beyond the periods stipulated in the SOW, then without prejudice to BARC’s right to terminate this Agreement, Subscriber shall be required to pay such interest, as set out in the SOW, which will be applicable from the due date of payment till the actual date of payment.”

Specifically, the payment pertains to BARC releasing data of audience measurement under certain products it provides to the news channels and not for collecting the data alone.

“BARC charges Broadcasters a flat fee and in addition to a percentage of the advertising revenue, as subscription fees. Most news channels have paid the subscription amount until September 2020, and also have submitted a revenue projection. Due to the ongoing pandemic, lockdowns, and the impact on the overall economy as well as BARC decision to pause ratings for the news genre, the revenue projections have steeply declined. Hence, we strongly believe new channels have paid in excess to BARC, which would result in BARC giving them credit note, and adjusting for future subscription fees,” the letter said.

In the letter written to the board of directors at BARC on June 5, NBF requests them to not pressurize their member news channels that are protesting to pay the fees due to pause in BARC’s weekly rating availability, by sending notices for suspending data collection for the respective news-channel and to pay up immediately.

Explaining non-payment of fees from the broadcasters’ side, the letter said, “BARC unilaterally decided to suspend publishing of weekly viewership of news channels in October 2020 for 8-12 weeks, for the purported reason of their having to review the rating process in the wake of the so-called TRP scam. It is now almost 9 months since the suspension that BARC has not addressed their issues, as the weekly ratings for news channels is not made available”.

The letter also points out how news channels are facing stiff pushback from the advertisers and their agencies on grounds that the absence of rating data is limiting their analysis of the prevailing trends on channel performance. “This has caused a major disadvantage to the news channels in their commercial negotiations with the Advertising Agencies,” NBF points out in the letter.