Govt vs Broadcasters: Clash over TV ratings system pits competition against credibility

While MIB argues removing restrictive clauses will invite innovation, competition, broadcasters and cable operators are warning that the changes risk compromising the credibility of the ratings system

e4m by Aditi Gupta
Published: Sep 8, 2025 8:52 AM  | 6 min read
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As India prepares to open its television audience measurement market to multiple agencies, the government’s proposed overhaul of long-standing rules has triggered sharp divisions across the broadcast ecosystem.

While the Ministry of Information and Broadcasting (MIB) argues that removing restrictive clauses will invite innovation, competition and global expertise, broadcasters and cable operators are warning that the changes risk compromising the very credibility of the ratings system.

On July 2, the ministry invited feedback on draft amendments to the 2014 “Policy Guidelines for Television Rating Agencies.” At the heart of the debate are two proposed deletions: Clause 1.5, which bars individuals with direct commercial interests in broadcasting or advertising from sitting on the boards of rating agencies, and Clause 1.7, which prevents ownership overlap between broadcasters, advertisers, ad agencies and measurement firms. The ministry had invited stakeholder suggestions by September 2.

 

Broadcasters draw a red line

Industry bodies like the Indian Broadcasting and Digital Foundation (IBDF) and the News Broadcasters and Digital Association (NBDA) have firmly opposed the scrapping of these safeguards. Both associations maintain that while reforms are welcome to make ratings more robust, neutral and technologically updated, relaxing conflict-of-interest norms would weaken transparency.

Citing credibility risks, they argue that audience measurement must remain industry-led and not-for-profit to maintain independence. Some broadcasters have even recommended that the Competition Commission of India (CCI) be given a role in vetting applicants, ensuring market structures are not distorted by vested ownership.

 

Cable operators warn of capture and chaos

All India Digital Cable Federation (AIDCF) has gone a step further, calling the deletions “dismantling of vital guardrails.” In its submission, the federation warned that letting broadcasters, OTT platforms or advertisers hold equity or board influence in measurement firms could create “data-driven monopolies” and open the door to manipulation of ratings.

“Even the perception of such influence would erode trust among stakeholders,” AIDCF noted, adding that vertical integration—where content creators also control audience metrics—would distort competition and advertising flows.

The group also highlighted a looming transparency and accountability deficit. In its view, if ownership and governance lines blur, mandatory disclosure frameworks—similar to those governing financial markets—should be put in place. Instead, the proposed amendments appear to weaken these safeguards rather than strengthen them.

AIDCF warned of fragmentation risks if cross-holding barriers are removed, with Big Tech, device manufacturers, distributors and content providers each launching proprietary measurement models. Such a fractured system, it argued, would confuse advertisers, reduce consumer trust and potentially undermine market stability. It also flagged the risk of regulatory capture and market bias, where powerful stakeholders could indirectly fund or influence ratings agencies, thereby controlling audience data and skewing advertising flows.

To build credibility instead, AIDCF urged adoption of Return Path Data (RPD) from set-top boxes. Larger and more representative datasets, it argued, would improve statistical reliability, enhance regional granularity and reduce the scope for tampering. The group pointed to past recommendations by the Working Group on Television Rating Points, which had supported integrating RPD with panel-based systems to modernize India’s measurement framework. AIDCF further suggested that including RPD in the overall metered base should be made mandatory in the licensing conditions for future rating agencies.

 

The legal lens
Vivek Tiwari, Associate Partner at TARAksh Lawyers and Consultants, said cross-holding restrictions are “not cosmetic provisions; they operate as a fundamental structural safeguard to maintain the integrity of audience measurement systems.”

From a legal standpoint, he noted three critical implications:

  • Conflict of Interest Mitigation: Corporate and competition law treat conflicts of interest not just as disclosure issues but as problems requiring structural prevention. If broadcasters were allowed to hold stakes in rating agencies, the risk of systemic manipulation would move from theoretical to real.
  • Credibility and Market Faith: Ratings influence advertising spends worth thousands of crores, shape programming decisions, and even affect investor sentiment for listed broadcasters. A compromised process could lead to proceedings under the Consumer Protection Act for misrepresentation, or attract scrutiny from SEBI if disclosures are distorted.
  • Regulatory Harmony: Similar safeguards exist for credit rating agencies and auditors, where independence is a cornerstone. Weakening them in television ratings, Tiwari argued, risks creating an inconsistent and challengeable regulatory architecture.

Tiwari further warned that removing these clauses would weaken preventive oversight. Instead of stopping conflicts before they arise, the system would have to rely on post-facto investigations, disclosures or whistleblowers—an inherently weaker model. It could also heighten competition law risks, with dominant broadcasters accused of exclusionary tactics or collusion, and open the door to litigation from advertisers, rivals or investors who feel financially harmed by biased ratings.

“In the absence of hard-edged safeguards like disclosure mandates, conflict audits, whistleblower protections, or cooling-off periods for industry stakeholders, the entire policy risks constitutional challenges for arbitrariness, as well as regulatory overcorrection later,” he said.

The government’s push for competition

The ministry’s stance stems from criticism that India’s ratings market has remained locked in a monopoly, with BARC India being the sole licensed provider since 2015. Officials believe that loosening ownership and governance restrictions will make it easier for new entrants, both Indian and global, to bring in advanced methodologies that integrate TV, connected TV, mobile, and OTT viewership.

The draft reforms also propose expanding the scope of measurement beyond traditional TV to digital and connected devices, aligning with how audiences increasingly consume video.

Global players watching closely

The changes are also coinciding with major developments abroad. Global measurement giant Nielsen recently became the first accredited national TV audience measurement provider for a multi-agency system with a nod from the US authorities, where it has been recognized by both industry and government. Starting next month, Nielsen will roll out Big Data + Panel ratings for clients there.

Sources indicate that Nielsen may consider seeking a license in India as well. For a market where credibility of TRPs has been hotly debated between broadcasters and advertisers, Nielsen’s entry with an accredited hybrid methodology could mark a turning point.

 

What lies ahead

The battle lines are clear: the government wants to dilute cross-holding restrictions to attract competition and technology, while broadcasters and distributors want those restrictions preserved as a bulwark against conflicts of interest.

The eventual outcome will likely determine whether India’s ratings market becomes more open and competitive, or whether trust deficits deepen. With the start of the new broadcast season and major sporting events around the corner, advertisers too are watching closely.

For now, the debate boils down to a fundamental question: can India create a ratings ecosystem that is both competitive and credible, or will relaxing the rules tilt the balance in favor of influence over independence?

 

Published On: Sep 8, 2025 8:52 AM