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2-min video: With digitisation, reliance on advtg will dip: Vikram Chandra

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2-min video: With digitisation, reliance on advtg will dip: Vikram Chandra

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. On the one hand, TRAI has taken serious note of the violation of the amendment on ad cap, while on the other hand, broadcasters feel it shouldn’t be implemented at this point of time when digitisation in the entire country is yet to happen.

As is known, TRAI had sent a notice to the 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 news channels to wind up, they stress.

Vikram Chandra, Group CEO, NDTV has remarked, “No one is saying we shouldn’t eventually have a reduction in the amount of minutes for advertising. What the broadcasters are saying is that there is a certain process that has to be followed and a logical sequencing of that.”

He further said, “With digitisation, we are going to see subscription revenues going up and carriage fees going down, as a result of which the reliance on advertising goes down and once that happens, we will have all sorts of other things like ad caps.”

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