Scatmag.com

February 2018

MIB TOLD TO ACT ON EXCESSIVE ADS


In probably the most mind-boggling deal of the decade, on 14 Dec 2017, Rupert Murdoch confirmed to the world that he was selling most of 21st Century Fox, to the Walt Disney Company. Walt Disney Co. has agreed to pay $52.4 billion to acquire much of the global empire that media baron Rupert Murdoch assembled over 30 years. Disney will also assume about $13.7 billion of net debt owed by fox. This effectively pegs the price at $ 66.1 billion.

The merger is subject to customary conditions, including regulatory and shareholder approval. If approved, its likely to conclude in 2 years.


CALL TO CHANGE AD LAW

The committee has taken this proactive step, as it is aware that broadcasters have stalled the TRAI's 12 minutes ad cap per clock hour, in court. However, if the government changes the existing law, the long pending court matter will no longer be able to provide broadcasters unlimited ad time.


MIB Directed To Conduct A Study On How Far DAS Has Achieved Its Intended Objectives.

DIRECTION

"The committee recommends that steps must be taken to regulate the permissible duration and frequency of advertisements during a programme to ensure that in order to maximise their advertisement revenue, broadcasters do not force the viewers to bear repetitive slots of advertisement in quick succession without any check whatsoever," the committee said in its 44th report.


LIMIT TICKER SIZE

It also asked the MIB to ensure that ads being run in scroll/ticker should not cover more than 10% of the TV screen space and also not spoil the aesthetic sense of the programmes being telecast.


NO VERTICAL ADS

It also stated that there should not be any vertical display (running or static) of an ad on TV screen by any TV channel.

The MIB has been asked to initiate action & revert to the committee.


"Steps Must Be Taken To Regulate The Permissible Duration & Frequency Of Ads"




DAS NOT INCREASED SUBSCRIPTIONS

Broadcasters had said that they were being deprived of a major portion of their subscription revenues due to piracy on analog Cable TV Networks. DAS was introduced as a key tool to limit piracy and increase subscription revenues.

However, the committee has pointed out that while TV subscription revenue has increased from ₹ 329 billion in 2011 to ₹ 588.3 billion in 2016 (78.8%), advertising revenue has also increased from ₹ 116 billion in 2011 to ₹ 201.2 billion in 2016 (73.4%).

Hence broadcaster's revenue splits from advertising and subscriptions had not changed significantly post DAS.

"As such, there is no noticeable shift from advertising revenue to subscription revenue in the post digitisation era. Further, no more Ad free channels have been reported by Broadcasters after 2012," it said, to point out that DAS had not increased broadcaster's subscription revenues.


DAS A FLOP?

The committee has directed the MIB to conduct a formal cable TV digitisation impact assessment study including all its aspects to get a clear picture on how far DAS has actually been able to achieve its intended objectives.

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