Television broadcasters will no longer be bound by the 12-minute limit on advertisements after the government moved to change the rules governing ad duration. This will promote fair competition and ease of doing business in the broadcasting sector, the ministry of information and broadcasting said on Friday.
The new rule will start only after the government officially publishes the amended rules in the Gazette, the government’s official record.
TV industry has expanded in the last 20 years
The advertisement limit was introduced in 2006, when India's television market was much smaller and largely dependent on analogue cable networks. There were only 62 TV channels at the time.
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The landscape has since expanded sharply, with more than 900 television channels now operating in the country. The complete digitisation of cable television and the expansion of DTH, HITS and IPTV services have also given viewers access to hundreds of channels.
The government said the increased number of platforms and channels has created greater competition and expanded consumer choice.
{{/usCountry}}The government said the increased number of platforms and channels has created greater competition and expanded consumer choice.
{{/usCountry}}Digital media changes advertising landscape
This also takes into account the growing importance of digital media, which is not subject to a similar restriction on advertisement duration. According to the ministry, the existing rule put traditional broadcasters at a disadvantage in an increasingly competitive media market.
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The government has therefore decided that the restriction is no longer necessary and has lifted the cap to promote competition and make it easier for television broadcasters to do business.
The government's decision comes months after the Delhi High Court upheld the 12-minute advertising limit. In May, the court dismissed challenges by broadcasters and held that the restrictions were a valid regulatory measure aimed in part at protecting the television viewing experience.
The old rule was actually '10+2'
The earlier framework, commonly referred to as the “10+2” rule, allowed television channels to carry up to 12 minutes of advertising in a clock hour, including 10 minutes of commercial ads and two minutes of self-promotional content.
Why the cap existed
TRAI says the advertising restrictions were introduced partly because excessive advertising was seen as affecting the quality of viewers' experience. The regulator received complaints about long ad breaks, repeated advertisements and interruptions during programmes.
Industry groups had proposed different alternatives before the government opted for complete removal of the ceiling. The Indian Society of Advertisers had suggested a 25% advertising limit, while the Advertising Agencies Association of India favoured a market-led approach. Broadcasters pushed for removal of the statutory ceiling altogether.