Door Open For New TV Rating Agencies As Ministry Plans Overhaul Of Norms

The Ministry of Information and Broadcasting (MIB) has proposed an overhaul of guidelines governing television rating agencies, including the deletion of two critical clauses from the norms originally notified in 2014, that will likely open the door to more players in the television ratings space.

Through these proposed changes, OTT platforms, digital distributors, and tech firms can now apply to become registered rating agencies.

The relaxations are part of the ministry's proposal for amending the Policy Guidelines for Television Rating Agencies in India. Public and stakeholder feedback are invited within 30 days.

Under the proposal, the Union government plans to make compulsory registration of all TV rating agencies with the Ministry, with a detailed framework on eligibility criteria, operational procedures, data standards, and compliance.

The proposal also calls for scrapping of restrictions on a TV rating agency's board members, which prevented them from having ties with media businesses. It also calls for scrapping cross-holding limits, with an aim for wider industry participation.

Currently, the Union government's guidelines prohibit any entity or individual from holding over 10% stake in a rating agency and a broadcaster/advertiser. Such regulations are also applicable on holdings across multiple rating agencies and do not apply to industry-led self-regulation models such as the Broadcast Audience Research Council.

Besides, the proposal says companies seeking to be rating agencies must be registered under the Companies Act of 2013, instead of the Companies Act, 1956. Companies will also now be explicitly required to not undertake any activity like consultancy or advisory, which might lead to a potential conflict of interest. Earlier, this was required to be mentioned only in the company's memorandum of association.

"The above provisions would come into effect immediately and would also be applicable in respect of the existing registered companies," the notice read.