Centre removes 12-minute advertisement cap for television channels

The Centre has decided to remove the 12-minute-per-hour cap on advertisements for television channels, citing sweeping changes in India's broadcasting landscape and growing competition from digital media. The Ministry of Information and Broadcasting said the restriction, introduced in 2006 under the Cable Television Networks Rules, 1994, needed to be reconsidered as the television industry had changed substantially over the past two decades. The decision will take effect once the amendment to the Cable Television Networks Rules is formally notified in the Gazette.

Over 900 channels

When the advertisement ceiling was introduced in 2006, India had only 62 television channels and cable television was largely analogue, limiting both carriage capacity and consumer choice. The broadcasting landscape has since expanded dramatically, with more than 900 television channels now operating in the country.

Distribution systems have also shifted to digital technology. DTH, cable television, HITS and IPTV platforms can now offer hundreds of channels, giving viewers substantially more choice than was available when the restriction was introduced. The ministry believes this expansion has created sufficient competition within the television broadcasting industry.

Digital competition

The government has also pointed to competition between conventional television broadcasters and digital platforms as a reason for removing the cap.

Television channels in India depend heavily on advertising revenue regardless of whether they operate as pay channels or free-to-air services. Digital media platforms, however, have not been subject to a comparable restriction on the duration of advertisements.

The ministry said this had created an uneven competitive environment for traditional television broadcasters.

According to officials, removing the ceiling is intended to provide broadcasters greater flexibility, encourage fair competition and improve ease of doing business.

Broadcasters get flexibility

Once the amended rules come into force, television channels will no longer be bound by the existing 12-minute advertising ceiling and will have greater freedom to determine how much advertising they carry.

The government has argued that market competition and the wide range of viewing options now available to consumers have reduced the need for a prescribed time limit.

The change represents a major shift in India's television advertising regulations, which have governed broadcasters for two decades.

The new regime will come into operation from the date on which the amendment to the Cable Television Networks Rules, 1994, is published in the official Gazette.