#e4mExclusive:  MIB agrees to scrap 10+2 TV advertising cap

In a major policy decision set to reshape India’s television broadcasting industry, the government has agreed to abolish the existing 10+2 advertising cap on television channels. I&B Minister Ashwini Vaishnaw informed a delegation from the News Broadcasters Federation (NBF), led by its founding president Arnab Goswami, of the government’s decision during their meeting today, e4m has learnt. Multiple members of the NBF have confirmed the development to e4m. Delegations from NBA and IBDF also met the minister on the matter recently.

The decision marks a significant shift in the government’s approach to television advertising regulation and comes after years of sustained representations from broadcasters seeking greater flexibility in monetising their programming.

The NBF delegation, led by Goswami, met Vaishnaw to discuss the advertising restrictions faced by television broadcasters and the growing competitive pressure from digital platforms, where advertising inventory is not subject to a comparable statutory ceiling.

During the meeting, the minister announced that the government would do away with the existing advertising cap, providing broadcasters with greater freedom to determine commercial inventory based on market conditions and audience behaviour.

The move is expected to be welcomed by broadcasters, particularly news channels, which have argued that the existing framework places television at a disadvantage against digital platforms. News broadcasters have also pointed to the rising cost of live journalism, continuous news gathering and investments in technology and distribution.

The NBF has consistently argued for regulatory forbearance, maintaining that advertising duration should ultimately be determined by market forces. The association has pointed to the changing economics of television broadcasting and the increasing competition for advertising budgets from digital platforms.

The issue has been under active consideration at the Ministry of Information and Broadcasting (MIB), which had been consulting broadcasters, advertisers and advertising agencies on possible changes to the existing framework.

Until recently, the government was understood to be considering a calibrated relaxation rather than complete deregulation. Industry stakeholders had proposed a range of alternatives, including increasing the permissible advertising time, introducing differentiated norms for different genres and moving towards a more flexible regulatory framework.

The Indian Society of Advertisers (ISA), for instance, had backed an increase in the permissible advertising ceiling to 25% of a clock hour, effectively allowing 15 minutes of advertising per hour. The Advertising Agencies Association of India (AAAI), meanwhile, had argued for a market-led approach without government-prescribed advertising durations.

Broadcasters, represented by industry bodies including the Indian Broadcasting and Digital Foundation and the News Broadcasters & Digital Association, had pushed for complete forbearance, arguing that excessive advertising would itself lead to audience migration and therefore create a natural market correction.

The government's decision to abolish the cap therefore represents a significant departure from the calibrated-relief approach that had been under discussion.

The policy shift also comes against the backdrop of a rapidly changing media ecosystem. Television broadcasters increasingly compete with streaming services, social media platforms and other digital outlets for the same advertising rupee, while digital platforms generally have greater flexibility in determining the volume and placement of commercial messages.

For broadcasters, the removal of the cap could open up additional advertising inventory and potentially provide a boost to revenues at a time when the television industry is dealing with intensifying competition and fragmented audiences.

The decision is also likely to trigger discussion around the viewing experience and consumer protection. Advertising limits were originally introduced with the objective of preventing excessive commercial interruptions and ensuring that viewers receive a reasonable balance between programming and advertising.

The government’s decision will therefore be closely watched by advertisers, agencies and consumer groups, particularly as broadcasters begin determining how the additional inventory will be deployed.

The NBF delegation's meeting with Vaishnaw assumes particular significance given the federation's longstanding advocacy on issues affecting news broadcasters. 

The NBF represents broadcasters across national and regional markets and has previously engaged with the government on regulatory and structural challenges confronting the industry. A previous NBF delegation led by Goswami also met Vaishnaw during a broader engagement with the government on issues facing India's broadcast news sector. 

The abolition of the advertising cap could now pave the way for a more market-driven television advertising regime, potentially marking one of the most consequential regulatory changes for India's broadcasting sector in years.

The industry will now await details on the implementation mechanism and the amendments required to give effect to the government's decision.