Starting 1st October advertisements on Television will be limited to 12 minutes per hour. This can be further broken into 10 minutes of advertisement and 2 minutes of their own content promotion by the television channels. I came across this piece of news and was thrilled by its scope. Finally someone at TRAI has woken up to shepherd the cash cows.
What does it mean, firstly for the broadcasters, secondly for the advertisers, thirdly other media platforms and finally for the viewers. Let’s see if we can add some sense –
1. Television companies – Let’s say they were playing 25 minutes of advertising an hour. Under the new rule this will get cut down by 50%; it is unlikely the advertisers will agree to pay this steep increase and hence the television channels in spite of increasing price will stand to lose out on advertisement revenue. However their incomes can increase via subscription thanks to the increasing digitalisation.
2. Advertisers – The top spenders on television will need to cough up more. Industries like FMCG, Banking & Insurance cannot do without television advertising. However it means they will start demanding extreme optimisations of their funds.
3. Other media platforms – Digital stands to gain the maximum. It is anyways the buzz word in the industry. Radio can also benefit but they need to grow themselves as innovative leaders and idea spinners rather than a “cheap” option.
4. Viewers – They will be delighted. Of late TV watching had become a pain. Even at 1 pm in the night they will bombard you with 8 minutes of their own content promotion and that too at frequent intervals. How would one feel if someone keeps serving you idli dosa while you are interested in eating Chinese! Exactly the case with these TV companies especially movie channels.
This looks to be a welcome change which will clean the TV industry.