Advertisement Time Capping Impacting Broadcasting Companies – Many May Disappear


Advertisement time Capping: The Broadcasting regulators directives to cap advertisement time to 12 min per hour is going to reduce much needed cash for Broadcaster to cover their cost. Post big Broadcasting companies withdrawing their petition from TDSAT against regulatory move, it is evident that small players may find it difficulties to have sustainable business model. The regional broadcasters are important ecosystem players are they focus deep in rural sectors and offer huge repository of cash rich content across multiple delivery network. Analysts are predicting that big players will be successful in increase prime time ad tariff whereas regional players due to their geographical positioning may find it difficult to increase ad tariff. With more than 500 broadcasting companies, the intended regulation is going to initiate consolidation process and big player would be the beneficial to get even bigger. In the current economical environment, the move is not going to impact the industry but also millions of attached resources. Regulators must think twice to enforce the proposed regulation to trigger consolidation process as handling large sharks are always tough and examples are in front of us, such as Time Warner, News Corporation.

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