The tug of war between the Telecom Regulatory Authority of India (TRAI) and the broadcast industry regarding the 10+2 ad cap has been going on for the last one year. While TRAI has taken serious note of the violation of ad cap, broadcasters insist that the ad cap shouldn’t be implemented at this point in time when the digitisation process is still going on in the country.
As is known, TRAI had sent a notice to broadcasters a couple of weeks back, asking them to provide reasons for not implementing the ad cap limit during their shows.
The broadcasters maintain that they are running media companies and at the end of the year they need to compile balance sheets with some profits in them. Implementing these ad caps will make entire channels to wind up, they stress.
Sharing his views on the issue, Aroon Purie, Chairman, India Today Group remarked, “TRAI’s proposal of enforcing ad cap at this stage of the broadcasting industry is completely wrong because the digitisation process is not yet complete and subscription revenues are not flowing to the channels. Hence, the ad cap enforcement will have enormous affect on channels’ revenues.”
Supporting the broadcasters in the net vs. gross issue, Purie said, “I think the broadcasters are completely right when they want to bill whatever they are being paid for.”
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