Broadcasters welcome end of 10+2 ad cap

Broadcasters have welcomed the government's decision to abolish the 10+2 advertising cap on television, describing the move as a significant relief for an industry facing rising costs, fragmented audiences and intensifying competition from digital platforms.

The decision, communicated by Union Information and Broadcasting Minister Ashwini Vaishnaw to a delegation of the News Broadcasters Federation (NBF), effectively gives television broadcasters greater flexibility to determine their commercial inventory based on market conditions. Delegations representing other sections of the broadcasting industry, including the Indian Broadcasting and Digital Foundation (IBDF) and News Broadcasters & Digital Association (NBDA), have also engaged with the ministry on the issue.

e4m was first to report about the development. 

For broadcasters, the removal of the advertising ceiling comes at a particularly critical juncture, with the festive advertising cycle approaching. The August-December period is traditionally among the most important for television advertising, with broadcasters looking to monetise premium programming, festive specials, reality shows and major sporting and entertainment properties.

However, industry executives said the relief from the advertising cap will only partially address the sector's immediate concerns. The bigger unresolved issue is the restoration of television audience ratings from the Broadcast Audience Research Council (BARC), which remain unavailable after the ministry asked the measurement body to withhold ratings pending registration under the new television ratings framework.

Broadcasters see major relief

Broadcasters have for several years argued that the 10+2 framework puts linear television at a disadvantage against digital platforms, where commercial inventory is not governed by a comparable statutory ceiling.

The NBF had pushed for regulatory forbearance, arguing that advertising duration should ultimately be determined by market forces. The Advertising Agencies Association of India (AAAI), too, had supported a market-led approach, while the Indian Society of Advertisers (ISA) had proposed increasing the permissible advertising time to 15 minutes an hour.

The government's decision to remove the cap altogether therefore goes beyond the calibrated relaxation that had been discussed earlier.

"Broadcasters have been seeking flexibility for years, and this decision gives them considerably more room to respond to advertiser demand and market conditions," said a senior television industry executive, speaking on condition of anonymity.

The executive added that the additional flexibility would be particularly valuable during the festive season, when demand for premium television inventory traditionally rises.

Another senior industry executive said the decision should not be interpreted simply as an opportunity to increase advertising loads.

"The market itself will determine how much advertising a channel can carry. If commercial breaks become excessive, viewers can move away and advertisers will respond accordingly. That market discipline is what broadcasters have been arguing for," the executive said.

Festive season relief, but BARC remains the missing piece

The timing of the government's decision is significant because broadcasters are already negotiating festive-season advertising campaigns in an environment where current television viewership data is unavailable.

BARC released television ratings for the April-June quarter only until week 24, after which ratings were withheld following a ministry directive. The ministry has sought BARC's registration under the new framework before ratings can resume.

The ratings blackout has complicated negotiations between broadcasters, advertisers and agencies, particularly for high-value programming. Industry data showed television free commercial time consumption in July falling to a three-year low, with consumption in Hindi-speaking markets and southern India declining 10-12%. Some individual genres recorded significantly sharper declines.

This makes the return of BARC data the next major priority for broadcasters.

"Removing the advertising cap addresses the supply-side constraint, but the ratings issue addresses demand and pricing. Broadcasters need both pieces to fall into place before the festive season," said another senior media industry executive, speaking anonymously.

The absence of fresh ratings makes it harder for advertisers to evaluate the performance of individual channels and programmes and consequently affects negotiations over rates, inventory and sponsorship packages.

Advertisers could get more inventory, but measurement remains critical

The removal of the cap could potentially increase the amount of television inventory available to advertisers. However, broadcasters are unlikely to be able to fully monetise that additional inventory unless advertisers have confidence in audience measurement.

Historical BARC data can continue to inform media planning, but agencies and marketers typically rely on current audience trends when allocating budgets across channels and programmes.

This is particularly important during the festive season, when broadcasters launch new shows and special programming and advertisers make large, time-sensitive commitments.

A senior media-buying executive said the return of ratings would therefore be critical to converting the regulatory relief into actual revenue growth.

"Additional inventory is useful only when there is visibility on who is watching, where they are watching and how a programme is performing. For the festive season, the industry needs a current measurement currency," the executive said.

TV industry faces pressure from digital

The government's decision also comes as broadcasters contend with a structural shift in advertising budgets towards digital video, connected TV, social platforms and performance-led advertising.

e4m had earlier reported that television broadcasters were facing a difficult festive season as the ratings blackout coincided with subdued advertising demand, macroeconomic pressures and the migration of advertising budgets towards digital platforms.

For broadcasters, the abolition of the 10+2 cap therefore provides greater control over monetisation at a time when every additional unit of inventory can become important.

The industry will now wait for clarity on the implementation mechanism and the amendments or regulatory changes required to formally give effect to the government's decision.

But from the industry's perspective, the policy debate on television advertising has effectively moved forward. The immediate regulatory ask is now shifting towards restoring the television ratings system.

With the festive advertising cycle already underway, broadcasters and advertisers are increasingly looking to the ministry for clarity on when BARC ratings will return.

For broadcasters, the message is clear: the removal of the ad cap is a major relief—but the festive season will ultimately depend on the return of the ratings currency.