Government opens TV ratings sector to new players with sweeping reforms

In a significant policy shift, the Ministry of Information and Broadcasting (MIB) has proposed key amendments to the existing guidelines for television rating agencies in India.

This is potentially paving the way for greater industry participation and the entry of new players, including OTT platforms, digital distributors, and technology firms.

The proposed changes are part of an official draft to revise the Policy Guidelines for Television Rating Agencies, first introduced in 2014. Notably, the government has suggested removing two crucial clauses that previously restricted rating agencies from having board members with media affiliations and imposed cross-holding limits.

These reforms aim to eliminate barriers to entry and promote a more competitive environment in India’s television audience measurement landscape.

Stakeholders and the public have been invited to provide feedback on the proposals within 30 days.

Under the proposed framework, all TV rating agencies will be required to register with the MIB. The new guidelines outline eligibility criteria, operational protocols, data standards, and compliance requirements that registered agencies must follow.

The ministry’s move also revises the legal registration requirements for rating agencies. Now, interested companies must be registered under the Companies Act, 2013, instead of the older 1956 law. Additionally, these firms will be explicitly barred from offering consultancy or advisory services that could pose a conflict of interest—a shift from the earlier requirement of merely stating such restrictions in their memorandum of association.

Currently, regulations prevent any individual or entity from owning more than a 10% stake in both a rating agency and a broadcaster or advertiser. These cross-holding restrictions also extend to multiple agencies, though they have not applied to self-regulatory bodies like the Broadcast Audience Research Council (BARC).

“The above provisions would come into effect immediately and would also be applicable in respect of the existing registered companies,” the ministry stated in its notice.

These sweeping reforms come at a time when India’s traditional cable TV industry is facing mounting pressure from rising OTT consumption and platforms like Free Dish, as noted in a recent AIDCF-EY report. The proposed liberalisation of the ratings sector could reshape the way television audiences are measured, with broader implications for advertisers, broadcasters, and digital content creators alike.