How much will building a new ratings system cost?

As India’s TV viewership landscape rapidly shifts towards digital and connected platforms, the question is no longer whether a new audience measurement system is needed—it is how much it will cost, who will fund it, and whether it will succeed in regaining trust.

In the wake of mounting criticism over the limitations of the Broadcast Audience Research Council (BARC), experts across the media and advertising ecosystem are beginning to converge on a common viewpoint: it is both technically feasible and economically prudent to set up a new, modern audience measurement framework—provided it is done right.

The real cost: Rs 300– Rs 500 crore over 3–5 years?

Building a new audience measurement system that addresses the shortcomings of the legacy BARC setup will undoubtedly require significant investment. According to industry experts, the cost could range from Rs 300 to Rs 500 crore over a period of 3–5 years.

“To build a credible TV ratings system in India, the upfront investment may be high, estimated between Rs 300 crore and Rs 500 crore over three to five years, but cloud computing, AI-based modelling, and real-time infrastructure can bring long-term cost efficiencies,” says Yasin Hamidani, Director at Media Care Brand Solutions.

Sharing a similar estimated cost of setting up the system, another industry expert, who did not wish to be named, said this budget of upto Rs 500 crore would cover hardware like people-meters and routers), field force deployment, nationwide panel maintenance, real-time data processing infrastructure, and compliance frameworks such as third-party audits and data security.

However, Hamidani highlights a major advantage: cost-efficiency in the long term.

“Once scaled, cloud-based systems and AI-integrated models reduce recurring costs dramatically. With the right upfront architecture, operational expenditure is not the real hurdle, alignment and legitimacy are,” he said.

This perspective finds resonance across stakeholders, with a brand expert asserting that it is the consensus that matters and not the cost.

“The actual technology has existed for a while. What’s really expensive is not infrastructure, it’s consensus. You need every broadcaster, agency, and advertiser to buy in. The ecosystem must agree on panel design, data usage, and methodological transparency, or the entire effort collapses,” the expert said.

Why the status quo isn’t working

India currently has over 230 million television households, but only about 58,000 people-meters are used to track viewership, representing a meagre 0.025% of TV homes. These meters are run exclusively by BARC, which has held a monopoly on TV ratings for over a decade. BARC’s panel has not been significantly updated since 2018, despite major shifts in consumer behaviour.

The Ministry of Information and Broadcasting (MIB) itself acknowledged in July 2025 that the existing framework is inadequate. It fails to capture viewership from smart TVs, OTT platforms, and mobile devices, which now constitute a substantial share of audience time.

The result is what advertisers and broadcasters term a “ratings gap”—a data disconnect between actual consumer behaviour and the insights used to plan media budgets. According to the Pitch Madison Advertising Report 2025, TV’s share in India’s advertising expenditure (AdEx) has dropped to under 30%, while digital has crossed 50%.

The case for co-funding: Advertisers ready to step in

One of the most significant shifts under discussion is the possibility of advertisers co-funding the development of an alternative ratings provider.

“The idea of sponsoring or lending support to develop a new system is increasingly common among Indian brands and advertisers, if it offers cross-platform precision and transparency,” notes Sayantani Das, Head of Marketing at Jumboking.

According to several industry voices, advertisers would be willing to support such an initiative, but only if certain conditions are met. These include, third-party audits from global media validation firms, neutral governance involving equal representation from advertisers, agencies, and broadcasters; pilot studies to establish credibility and alignment with campaign outcomes; real-time, device-agnostic measurement across TV, mobile, and OTT platforms; and independent benchmarking against established systems.

As one brand expert explained, “It has always been a question of who pays and whose interests are protected. The cost itself isn’t a deal-breaker, lack of trust is.”

He added that the best funding model may come through large media agencies acting as aggregators on behalf of advertisers. “This isn’t unlike the AAAI or MRUC model. You need an institution where every stakeholder feels they have a voice and veto.”

India’s current TV ratings framework is plagued not just by technological gaps, but also by structural barriers.

BARC’s monopoly has been protected by restrictive clauses in the 2014 “Policy Guidelines for Television Rating Agencies,” which previously limited the entry of new players.

The MIB’s July 2025 draft amendment attempts to fix this by loosening Clause 1.4 to allow operational flexibility without conflict of interest; removing Clauses 1.5 and 1.7, which had deterred potential entrants; encouraging multiple agencies to foster innovation and competition; expanding coverage to CTV, mobile, and OTT; and allowing broader stakeholder investments, including from broadcasters and advertisers, under regulated oversight.

Connected TVs and return path data: The infrastructure puzzle

Modernising audience measurement also requires better integration with return-path data and connected devices. Android set-top boxes (STBs) are key to enabling granular tracking—but affordability remains a barrier, said cable industry experts.

An MSO industry veteran pointed out that high import duties make these boxes expensive at Rs 3,500– Rs 4,000 each.

“Reducing import duties or offering tax incentives could accelerate adoption and expand return-path data collection,” he says.

Moreover, with MSOs and DTH platforms reaching nearly 100 million households, there's a compelling case to integrate real-time data flows directly from these homes, if pricing and privacy are managed correctly, another expert said.

Legal grey areas remain

While the MIB’s draft policy is a step forward, legal ambiguities still linger. Rohit Jain, Partner at Singhania & Co., flags potential confusion in the interpretation of Clause 1.4. Though conflict of interest guidelines has been loosened, the removal of Clauses 1.5 and 1.7 could open loopholes that allow broadcasters to control rating agencies, something most experts agree must be avoided.

“Even if clauses are deleted, the spirit of the regulation should prevail. Conflict of interest must be avoided at all costs,” Jain cautions.

The path forward: A system that reflects reality

Ultimately, the future of India’s TV ratings hinges not just on cost or technology, but on alignment.

Unanimous view remained that for the new system to succeed, it must be statistically representative, covering at least 70,000 panel homes, balanced across region, language, and socio-economic class. It must offer real-time data, cross-device attribution, and API integration with media planning tools. And it must include strong fraud detection and data security measures.

“If you can’t offer fidelity to ground reality, it won’t sway ad spends,” says Das of Jumboking. “Brands want insights they can act on and influence they can believe in.”

India has the technology. It has an investment appetite. What it now needs is collective will.

With the 30-day public consultation window ending on August 2, the MIB’s draft reforms could pave the way for an era of transparent, modern, and multi-platform audience measurement.