Door Open For New TV Rating Agencies As Government Allows Direct Media Ties

In a move that is likely to open the door to more players in the television ratings space, India's central government has proposed an overhaul of the country's TV rating agency norms, including the deletion of two critical clauses from the guidelines originally notified in 2014.

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 of Information and Broadcasting'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, New Delhi plans on mandating compulsory registration of all TV rating agencies with the Ministry, with a detailed framework of eligibility criteria, operational procedures, data standards, and compliance.

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

Currently, MIB 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.

It also calls for companies seeking to be rating agencies 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.