The Indian broadcasting industry has always stood divided on whether the country needs multiple audience measurement agencies or one robust agency. The latest and second draft of the Broadcasting Services (Regulation) Bill 2023 further proposes the methodology for audience measurement and doesn’t restrict the establishment of multiple agencies.
The second draft of the Broadcasting Bill, which is yet to be released for public feedback and has only been circulated among a handful of stakeholders, contains a proposal similar to the one mentioned in the first draft, which is about establishing a framework for audience measurement and the sale of ratings data. Storyboard18 reviewed the second version of the proposed Broadcast Bill, consisting of 49 pages.
Under its ‘Chapter VII’, the draft outlines guidelines for the ‘registration for providing audience measurement services.’
It mandates that any person who intends to provide audience measurement services may apply for the grant of registration for an audience measurement agency to the registering authority. The agency shall fulfill such eligibility criteria and conditions as may be prescribed.
Further, the Central government shall notify by way of rules the guidelines for audience measurement services which include methodology for audience measurement, complaint redressal mechanism, sale and use of ratings, the requirement for audit, action upon non-compliance, and inspection, among others.
This holds significance because in its latest recommendations for the National Broadcast Policy (NBP) 2024, the Telecom Regulatory Authority of India (TRAI), too has recently recommended the establishment of a multiple rating system and agencies. It mentioned establishing transparent and credible audience measurement and rating systems for television, radio, and OTT broadcasting services. The authority further suggested a revamp of the existing audience measurement system while introducing multiple agencies and an expansion of the sample size.
In a nutshell, the current government is certainly playing a proactive role in facilitating the establishment of multiple audience measurement agencies, leaving the industry more divided than ever.
Partho Dasgupta, Managing Partner, Thoth Advisors and ex-CEO, BARC India, points out that the first thing to assess is whether multiple ratings agencies are commercially viable or not. And ratings or any other third-party assessments work within the ecosystem – if all players in the ecosystem do not indulge in any wrongdoing, the third party can operate efficiently.
“I don’t see multiple ratings agencies solving any of the present issues – it will at best complicate issues – that could help some players no doubt (tongue firmly in cheek),” he says.
“I wish the Government would go beyond just regulating content and distribution issues. There are other important aspects of the broadcast business – like say the use of content freely by international tech companies or even the low advertising rates that impede the growth of the sector – I wish the Government would look into things holistically and not just in segments,” he remarks.
Meanwhile, an advertiser, off the record, highlights how multiple currencies will disrupt every stakeholder in the industry. “We rather have one agency for every media (TV, OTT, etc) so that marketers, the broadcasters, and the agencies can holistically view the consumer and not in silos,” he added.
Sanjay Trehan, Digital and New Media Advisor, adds that while it’s a good idea to have multiple broadcast ratings agencies as it brings in transparency and objectivity, the key, however, would be the kind of methodology adopted to gather consumption data.
“We are looking at a dynamic space that’s evolved beyond the linear TV and must include viewing habits and patterns from OTT and streaming platforms. Also, cross-platform consumption is growing and must be captured to give a comprehensive view of viewing habits. The ratings system needs to evolve with the times,” he says.
According to industry watchers, an encouragement toward having innumerable agencies will only weaken the current framework.
Read more: OTT and TV audiences: One measurement system, one currency or multiple currencies?
However, it is agreed upon that the country does need a more efficient mechanism to measure the consumption trends across genres, which can further save advertising dollars on linear TV.
At present, Broadcast Audience Research Council (BARC) India is operating with a panel size of only 55,000 households. Meanwhile, back in 2020, TRAI recommended that the rating agency should be mandated to increase the sample size from then existing 44,000 to 60,000 by the end of 2020, and 1,00,000 by the end of 2022 using the existing technology.
A smaller panel size inherently limits the scope of data available for analysis. Conversely, a larger panel size not only improves the robustness of the system but also adds substantial weight and value to measurement ratings.