 "BARC may emerge winner after govt's decision to regulate TV rating agency")
The government’s decision on Thursday, to regulate TV rating agencies in the country, is expected to help a rating agency set up by the Broadcast Audience Research Council of India (BARC) emerge as the leading rating agency in the country, says industry experts.
BARC is looking to set up a rating agency and has already appointed technology consultants for the same. In addition, it is also looking to appoint a panel design partner soon who will decide on the constitution of the panel homes. The agency will roll out its ratings agency by the second half of the year with the compulsory sample size of 20,000 panel homes as against the 9,600 panel homes that TAM Media Research uses now.
TAM Media Research, jointly owned by AC Nielson and Kantar Media Research run the largest TV rating agency in the country and Broadcasters had in recent times expressed their dissatisfaction with the TAM Media Research. TAM Media Research was not available to comment on the matter.
The government norms had said that the rating agencies will have to raise their sample size to 20,000 panel homes in the country, which was to be raised by 10000 homes every year until the sample size touches 50,000 panel homes. Industry experts now expect huge investments from the rating agencies to ramp up the sample size. "There are a lot of numbers floating around. While the sum may not be as big as Rs 200 crore, I would say the investment will be hefty, but under Rs 200 crore," an industry expert said. “The recommendations that have been cleared by the cabinet seem to be in line with what BARC is already doing. It is a step in the right direction” Ashish Bhasin, chairman, India & CEO, South East Asia, Aegis Group Plc said.
According to industry experts, BARC will now be able to reap the benefits of a strong backing by the advertisers, agencies and broadcasters since broadcasters have been criticizing the small sample size used by TAM Media research. “What TAM does is their prerogative. BARC is an independent rating system backed by advertisers, agencies and broadcasters. Once it begins giving out ratings in the second half of the year, I don't see whether TAM will be able to survive. So even though TAM may claim that they require Rs 200 crore for being able to implement the recommendations, I don't think it is likely to cut ice with their subscribers", a senior media planner said.
According to industry sources, almost 75 to 80% of TAM's cost is borne by broadcasters via subscription fees. The balance 15 to 20% comes from agencies, who represent advertisers.By some estimates, TAM gets almost Rs 100-120 crore via subscription fees annually. Multi-Screen Media (MSM), Times Television Network and the New Delhi Television (NDTV) had earlier written to TAM to be withdrawn from their system while Network 18, which owns CNN-IBN and CNBC among other channels, had also decided ‘in principle’ to withdraw and ask TAM to refund their fees. NDTV had last year filed a major suit against Nielsen group, Kantar group, and TAM India, in New York, claiming damages of over $1 billion.
"BARC like MRUC, which comes out with the readership survey, is a non-conflict and not-for-profit body. The moment you take out the business interest and conflict issue, half the battle is won because there is no vested interest involved. With TAM, the vested interest issue has stayed with it. Don't forget it has WPP's Kantar and Nielsen backing it. This is partly one of the reasons why broadcasters have complained that its data/ratings are not reliable. BARC to my view is transparent because it is for the industry, by the industry and of the industry”, another industry official said.
On Thursday, the government had decided to regulate rating agencies in the country and sought agencies to register themselves with the I&B Ministry within 30 days as part of its plan to bring transparency.Television rating points (TRP) are often used as a parameter by advertisers before selecting a channel or programme to air ads.
BARC is looking to set up a rating agency and has already appointed technology consultants for the same. In addition, it is also looking to appoint a panel design partner soon who will decide on the constitution of the panel homes. The agency will roll out its ratings agency by the second half of the year with the compulsory sample size of 20,000 panel homes as against the 9,600 panel homes that TAM Media Research uses now.
TAM Media Research, jointly owned by AC Nielson and Kantar Media Research run the largest TV rating agency in the country and Broadcasters had in recent times expressed their dissatisfaction with the TAM Media Research. TAM Media Research was not available to comment on the matter.
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Partho Ghosh, CEO, BARC India, said, "The recommendation says no one individual entity can either directly or indirectly shall have 10% or more of paid up equity in both rating agencies and broadcasters/advertisers/advertising agencies. BARC however comprises of associations and industry bodies and thus, is not affected. BARC is on track to roll out our ratings agency by the second half of the year”, he told Business Standard.
The government norms had said that the rating agencies will have to raise their sample size to 20,000 panel homes in the country, which was to be raised by 10000 homes every year until the sample size touches 50,000 panel homes. Industry experts now expect huge investments from the rating agencies to ramp up the sample size. "There are a lot of numbers floating around. While the sum may not be as big as Rs 200 crore, I would say the investment will be hefty, but under Rs 200 crore," an industry expert said. “The recommendations that have been cleared by the cabinet seem to be in line with what BARC is already doing. It is a step in the right direction” Ashish Bhasin, chairman, India & CEO, South East Asia, Aegis Group Plc said.
According to industry experts, BARC will now be able to reap the benefits of a strong backing by the advertisers, agencies and broadcasters since broadcasters have been criticizing the small sample size used by TAM Media research. “What TAM does is their prerogative. BARC is an independent rating system backed by advertisers, agencies and broadcasters. Once it begins giving out ratings in the second half of the year, I don't see whether TAM will be able to survive. So even though TAM may claim that they require Rs 200 crore for being able to implement the recommendations, I don't think it is likely to cut ice with their subscribers", a senior media planner said.
According to industry sources, almost 75 to 80% of TAM's cost is borne by broadcasters via subscription fees. The balance 15 to 20% comes from agencies, who represent advertisers.By some estimates, TAM gets almost Rs 100-120 crore via subscription fees annually. Multi-Screen Media (MSM), Times Television Network and the New Delhi Television (NDTV) had earlier written to TAM to be withdrawn from their system while Network 18, which owns CNN-IBN and CNBC among other channels, had also decided ‘in principle’ to withdraw and ask TAM to refund their fees. NDTV had last year filed a major suit against Nielsen group, Kantar group, and TAM India, in New York, claiming damages of over $1 billion.
"BARC like MRUC, which comes out with the readership survey, is a non-conflict and not-for-profit body. The moment you take out the business interest and conflict issue, half the battle is won because there is no vested interest involved. With TAM, the vested interest issue has stayed with it. Don't forget it has WPP's Kantar and Nielsen backing it. This is partly one of the reasons why broadcasters have complained that its data/ratings are not reliable. BARC to my view is transparent because it is for the industry, by the industry and of the industry”, another industry official said.
On Thursday, the government had decided to regulate rating agencies in the country and sought agencies to register themselves with the I&B Ministry within 30 days as part of its plan to bring transparency.Television rating points (TRP) are often used as a parameter by advertisers before selecting a channel or programme to air ads.