TRIAL BY TRAI FOR BARC
The Telecom Regulatory Authority of India (TRAI)’s recent recommendation on a major overhaul in the governance structure and operational framework of the Broadcast Audience Research Council (BARC) India, the joint-industry body for TV audience measurement, comes as a shocker for the beleaguered broadcast industry, media agencies and marketers who have been relying on BARC for TV ratings services since 2015. TRAI believes there is a need for development of multiple data collection and rating agencies and once that happens, BARC India should limit its role to publishing the TV ratings, framing methodology and audit mechanism for the rating agencies. Besides, TRAI wants to raise number of people meters from 44,000 to 66,000 by the end of 2020 and 1,00,000 by the end of 2022. “Apart from the cost implication, you cannot have multiple currency, you can’t have rupee and dollar in the same country. Some rookie may have put together the TRAI document without understanding how the industry works. In a way, this is the beginning of the killing of BARC. There are people who love to find loopholes in the system, basically these are the people who would tamper with meters and do all kinds of illegitimate things; therefore they do not want a strong scientific system,” says a senior industry professional who does not wish to be named. The same person pointed out several loopholes in the TRAI document – for instance the mention of “multiple data collection agencies”, implying that data is physically collected from people meters. WHY AT THIS TIME? Other sources in the broadcast industry too say they suspect vested interest of a few stakeholders behind this move at this critical time for the economy overall and media industry in particular, reeling under the impact of the COVID-19 crisis. On condition of anonymity, an industry expert questioned the ‘urgency’ in issuing the recommendations. “In 2018, TRAI issued a consultation paper seeking comments of stakeholders on issues related to review of the existing system. What was the urgency for TRAI in choosing a time when BARC is set to complete five years? BARC was a project which took a long time to come into execution. The process of creating a joint industry body started in 2006 and ended in 2015, a decade has been invested,” the expert said. BARC India is promoted by the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and the Advertising Agencies Association of India (AAAI), based on a 60:20:20 formula (IBF 60%, ISA 20%, AAAI 20%). It was seen to be the solution to the alleged shortcomings - such as data integrity, data inaccuracy and monopoly - of TAM Media Research (TAM), the agency providing TV audience measurement before BARC came into existence. Almost a decade and heavy investment went into planning and setting up BARC, and hypothetically, to repeat that exercise would spell disaster for the industry. Over the last five years, the television industry also suffered enough disruption at the onset of digitization of cable television in the country, transition from TAM to BARC and the new tariff order (NTO), and would not welcome another upheaval in the system if it can help it. According to TRAI’s website, stakeholders not satisfied with BARC’s rating service have contended that: TIME, COST, MANPOWER Reportedly, large networks end up paying around Rs 40-50 crore annually to BARC for the ratings. Of course, not all benefit out of the ratings, hence this payment is also questioned by broadcasters many a time. However, the key point is that to attract advertising, any industry needs a currency for measurement. BARC, launched in April, 2015, as an independent joint industry body formed by broadcasters, advertisers and agencies, took time in its adoption too. But broadcasters adopted to the new software pretty quickly and followed by media agencies and marketers who are now used to the new software. An overhauling of this, in case the TRAI recommendations actually go forward, will not only involve huge cost and time, but also take a toll on trained manpower and systems set up with much effort by the stakeholders. “BARC ratings are used as a trading currency in the broadcast domain… someone is selling TV time, and someone is buying TV time. It is a commercial thing. What’s the Government’s role in this? Who are they to tell us… that we should have one lakh meters or two lakh meters… How does TRAI come to the conclusion about a finite number? Do they have data to back that? Why recommend 1 lakh – we can say 10 lakh is better than 1 lakh! Besides, who will do the funding for that? I would urge the Government to please fund it, else refrain from advising us if they are not funding. It’s our money, so why should we spend on their recommendation?” asks a senior broadcaster. Some comments made by TRAI are not something that a rating system should be doing: Sunil Lulla WHY GOVT INTERFERENCE? TRAI’s recent recommendations come on the basis of the open house interactions it organises from time to time. The stakeholders reply to the consultation papers, from where the authority picks up its actions without considering their far-fetched implications. The industry feels that the Government should not interfere in this at all. “Print measurement is run independently. Digital measurement is not in their purview. Why is TRAI getting into television measurement? Even if they claim that they were referred to by the MIB, why is the Government getting into only TV measurement?” asks a senior broadcaster who does not wish to be named. Partho Dasgupta Karan Taurani WILL MIB RATIFY IT? Meanwhile, Minister of Information and Broadcasting Prakash Javadekar assured IBF office-bearers in a virtual meeting held on May 1 that the Government will take all steps to help the media and entertainment industry. When IBF functionaries raised the issue related to TRAI’s recommendations for BARC with the minister, he said his Ministry is looking into it very seriously and will see how both their concerns can be addressed. But with Amit Khare recently returning as Secretary, Information and Broadcasting Ministry, some have voiced concerns that TRAI’s recommendations now have more chances of actually moving ahead. Even if 50% of the recommendations are accepted by the MIB, it will be a tough call for the industry, say insiders. There was a huge show of solidarity by broadcasters in January this year when every top broadcaster came together on one stage to rally against TRAI’s fresh tariff regulations, that the regulator claimed to be a ‘fine-tuning’ of its New Tariff Order (NTO), implemented barely a year earlier. It remains to be seen what path the TRAI recommendations take, whether it goes to court, and then what happens. Also how much energy the IBF will put into fighting this as they are already waging the NTO battle with TRAI. For now, no one’s commenting. FRANCE: It is conducted by an independent company, Médiamétrie, with representatives of radio, Television, advertisers, advertising agencies and media brokers without any of them having a majority holding to take a decision alone. The stakeholding is as follows: 35% Broadcasters, Radio 27%, Advertising Agencies 35%, Others 3%. USA: Done by Media Rating Council (MRC), an industry-funded organization to review and accredit audience rating services in the U.S. Currently, MRC has approximately 95 Board members representing Television and Radio broadcasting, Cable, Print, the Internet and advertising agency organizations as well as advertisers and trade associations. Organizations such as Nielsen or Arbitron that provide media ratings are not allowed to be members. ISRAEL: Done by the Israel Audience Research Board (IARB). Equity investment is dissociated from the voting rights, and by making the regulatory authority a shareholder of the newly formed joint industry committee, consisting representatives of radio, TV, advertisers, etc. IARB does not carry out the ratings study directly, it outsources the job to independent private agencies (currently outsourced to Kantar Media). UK: BARB in the UK uses the same panel homes for online content viewership measurement that it uses for linear Television, where demographic viewing profiles are captured. Every time a home joins the panel, a software meter is also installed on their personal computers, mobiles and tablet devices. BARB collects census data for online Television viewing and has been publishing the UK’s only fully-audited, joint industry measure of online viewing since September 2015. BARB has appointed Kantar Media to implement its software project. AUSTRALIA: In Australia, OzTAM, the official source of television audience measurement (TAM), has launched a project called “audience measurement diversification”, and is looking to engage a global measurement company to provide platform-agnostic views of the shows. OzTAM provides broadcasters with a software development kit (SDK) and tools to integrate with OzTAM’s system. This includes code developed by OzTAM, allowing it to correctly attribute every minute of content played on individual connected devices, across platform or operating systems. OzTAM captures overall video play on connected devices, but it does not know who is watching on those devices. SINGAPORE: The Singapore Television Audience Measurement (SG-TAM) provides the viewership of Television content, such as Free-To-Air TV and pay-TV channels, shown across traditional and digital platforms. For television audience measurement, a people meter is connected to panel households’ television sets. For digital measurement, a software metering application is installed on PCs, laptops, tablets, and smartphones. The software works passively to collect media and the internet usage behavior. SG TAM has been delivering digital measurement ratings since 2016. WHAT TRAI WANTS
COMPLAINTS AGAINST BARC
THE BARC STANDPOINT
“Some of the comments made by TRAI are not something that a rating system should be doing. We think it may take it back. We will have more private conversation with the Government on this subject. You can well believe that the rating system will continue. It will continue to do what it’s doing. We have worked closely with the Government. We listen to suggestions made. But at the end of the day, we believe it’s in the best interest if this body remains aligned to the advertising and marketing economy. The currency that we have and the ratings that we release, today it is TV and tomorrow it will be a lot more; in the near future, we will do a lot more in terms of audio visual content; it will only fuel the economy. Advertising fuels demand, demand fuels the economy so it makes sense to give it its neutral and independent place,” says Sunil Lulla, CEO, BARC India, said in response to a query from IMPACT during a BARC-Nielsen webinar. ‘Around the world, there is only one rating company in a country’
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VP- Research, Elara CapitalHOW TV AUDIENCES ARE MEASURED WORLDWIDE
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