 "Delhi HC likely to give judgement on Kantar Media (TAM) petition tomorrow")
The Delhi High court is likely to give an interim order on a petition filed by Kantar Media, the 50% shareholder of TAM Media Research, the country's sole TV ratings agency, against the new regulation brought by government to regulate TV rating agencies.
With the deadline for implementing new rules for TV ratings agencies approaching, Kantar argued that the directive of the ministry on TV ratings guidelines had been done under an executive action, which can be questioned in a court of law. Kantar also informed the court about a possible black out in the absence of a rating agency in the country while mentioning that political reasons could also be behind the hasty implementation of new guidelines.
Justice Manmohan while hearing the case remarked that an interim arrangement should be made before February 15 since the norms come into effect from February 15. The government had in January this year brought out a new policy to regulate the TV ratings agencies in the country and said that no single entity can hold paid-up equity in excess of 10% simultaneously in a rating agency and broadcaster, advertiser or advertising agency.
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Television rating points (TRP) are often used as a parameter by advertisers before selecting a channel or programme to air ads. The ratings have often been criticised for their small sample size and lack of transparency and the ministry had also asked agencies to ramp up the minimum panel size to 20000 panel homes. Agencies will have to raise the panel home size by 10000 homes ever year until it reaches 50000 panel homes.
TAM India is a 50:50 joint venture between AC Neilsen and Kantar Media Research. The latter is part of the Martin Sorrell led WPP Group which also operates a number of media agencies and advertising houses across the globe, including India. GroupM, the largest media agency group in India (with billings to the tune of Rs 1000-1200 crore in 2012) is a part of the WPP Group as are leading creative agencies like O&M, JWT and Bates.
In an interview with Business Standard late 2013, Kantar Chairman and CEO Eric Salama had revealed that his company will be interested in the ratings business n India only as a JV with Nielsen as is the arrangement currently.
According to estimates, the advertising money riding on news, Hindi general entertainment and sports channels this year will be Rs 8,000-9,000 crore. Of this, nearly half will be spent in the first half of the year, making it difficult for companies to take proper investment calls without ratings