Workflow
Advertising Cap Regulations
icon
Search documents
TRAI lobs an ad-cap googly just as TV broadcasters struggle with falling ads
The Economic Times· 2025-11-20 17:19
Core Viewpoint - The Telecom Regulatory Authority of India (TRAI) has issued show cause notices to major television broadcasters for violating the 12-minute advertising cap per clock hour, amidst ongoing litigation and a decline in advertising revenue in the industry [7]. Group 1: Regulatory Actions - TRAI has cited its powers under the TRAI Act and the Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations, 2012, which limit ads to 12 minutes in any clock hour [5]. - Broadcasters have 15 days to explain why action should not be taken under the Ad Cap Regulations of 2012, with the next hearing scheduled for January 27, 2026 [7]. - The notices have been sent to leading entertainment networks including JioStar, Zee Entertainment, Culver Max Entertainment, and Sun TV Network, as well as news broadcasters like TV Today Network, Network18, and Zee Media [7]. Group 2: Industry Performance - The television advertising volume has dropped by 10% year-on-year in the first nine months of 2025, attributed to weaker consumer demand and tighter budgets among FMCG companies [7]. - Zee Entertainment's ad income fell by 11% to Rs 3,591 crore in FY25, while Sony Pictures Networks India reported a 9% decline to Rs 2,606 crore, and Sun TV Network saw a 4% drop to Rs 1,440 crore [4][7]. - Industry executives indicate that the regulatory actions could materially affect ratings and monetization models, especially with the Ministry of Information and Broadcasting proposing new rules for TV audience measurement [6][7].