Cabinet nod for regulatory framework on TV ratings

New Delhi: With an aim of streamlining the way TV channels are rated in the country, the Union cabinet today approved a much-awaited proposal for bringing out a comprehensive regulatory framework with guidelines for the Television Rating Agencies.

These guidelines will cover detailed procedures for registration of rating agencies, eligibility norms, terms and conditions of registration, cross-holdings, methodology for audience measurement, a complaint redressal mechanism, sale and use of ratings, audit, disclosure, reporting requirements and action on non-compliance of guidelines.

As per the guidelines, the TRAI and I and B can conduct inspections of the rating company with a “resonable notice”.

The proposal is based on recommendations made by the Telecom Regulatory Authority of India (Trai) and is aimed at streamlining the process of rating viewership of TV channels.

Briefing mediapersons on the decision, Information and Broadcasting Minister Manish Tewari said there has been a “need” for such a framework to bring about transparency in the system.

He said the decision has been taken after detailed consultations and assessment by an inter-ministerial group.

According to the proposed guidelines being brought to address “aberrations” in the system, all rating agencies including the existing rating agencies shall obtain registration from the Ministry of I and B.

No single company or legal entity either directly or through its associates or interconnect undertakings shall have substantial equity holding that is, 10 percent or more of paid up equity in both rating agencies and broadcasters/advertisers/advertising agencies.

Ratings ought to be technology neutral and shall capture data across multiple viewing platforms viz. cable TV, Direct-to-Home (DTH), Terrestrial TV etc.

Panel homes for audience measurement shall be drawn from the pool of households selected through an establishment survey.

A minimum panel size of 20,000 to be implemented within six months of the guidelines coming into force. Thereafter the panel size shall be increased by 10,000 every year until it reaches the figure of 50,000.

Secrecy and privacy of the panel homes must be maintained and 25 percent of panel homes shall be rotated every year.

The rating agency shall submit the detailed methodology to the government and also publish it on its website.

The rating agency shall set up an effective complaint redressal system with a toll free number.

The rating agency shall set up an internal audit mechanism to get its entire methodology/processes audited internally on quarterly basis and through an independent auditor annually.

All audit reports to be put on the website of the rating agency. Government and Trai reserve the right to audit the systems /procedures/mechanisms of the rating agency.

Non-compliance of guidelines on cross-holding, methodology, secrecy, privacy, audit, public disclosure and reporting requirements shall lead to forfeiture of two bank guarantees worth Rs 1 crore furnished by the company in the first instance, and, in the second instance shall lead to cancellation of registration.

For violation of other provisions of the guidelines, the action shall be forfeiture of bank guarantee of Rs 25 lakh for the first instance of on-compliance, forfeiture of bank guarantee of Rs 75 lakh for the second instance of non-compliance and for the third instance, cancellation of registration.

The 30 days time would be given to the existing rating agency to comply with the guidelines.

The guidelines would come into effect immediately from the date of notification.

Detailed registration procedure, eligibility norms, terms and conditions, cross-holding norms, period of registration, security conditions and other obligations have been delineated.

“The guidelines for TV rating agencies are designed to address aberrations in the existing television rating system. These guidelines are aimed at making television ratings transparent, credible and accountable,” Tewari said.

“The agencies operating in this field have to comply with directions relating to public disclosure, third party audit of their mechanisms and transparency in the methodologies adopted,” he said.

This, the minister said, would help make rating agencies accountable to stakeholders such as the government, broadcasters, advertisers, advertising agencies and above all the people.

Television Rating Points (TRPs) have been a much-debated issue in the country for a number of years since the present system of TRPs is riddled with several maladies such as small sample size which is not representative, lack of transparency, lack of reliability and credibility of data etc.

Shortcomings in the present rating system have been highlighted by key stakeholders that include individuals, consumer groups, government, broadcasters, advertisers, and advertising agencies etc.

Members of Standing Committee on Information Technology had also expressed concern over the shortcomings.

In 2008, the I and B ministry had sought recommendations of Trai on various issues relating to TRPs and policy guidelines to be adopted for rating agencies.

Trai, in its recommendations in August 2008, had amongst other things recommended the approach of self-regulation through the establishment of an industry-led body, that is the Broadcast Audience Research Council (BARC).

PTI