India changes two-decade old rule to make you watch more advertisements during TV shows

Synopsis

Ministry of Information & Broadcasting has lifted the long-standing cap on television advertisement durations, enhancing competition and streamlining business operations. Previously, channels were bound to a limit of twelve minutes of ads per hour. This notable change reflects the broadcasting sector's growth and digital evolution, while also affecting ongoing legal matters and industry standards related to advertising.

Mumbai: The Ministry of Information & Broadcasting (MIB) Friday scrapped a two-decade-old rule on restricting television advertisements to 12 minutes, saying the move will enable fair competition and ensure ease of doing business.

The advertisement duration cap was introduced in 2006 under the Cable Television Networks Rules, 1994. The ministry said the TV broadcasting sector has undergone major changes in the past two decades, with the number of TV channels rising to more than 900 currently from 62 in 2006.

The ministry also pointed to the complete digitisation of cable television and the expansion of DTH, cable TV, HITS, and IPTV platforms. These platforms now offer consumers hundreds of channels, providing greater choice and, in the ministry's assessment, adequate competition.

Noting that television remains heavily reliant on ads—whether a channel is pay or free-to-air—the ministry also said the current restriction created a non-level playing field between traditional television and digital media, where there is no comparable advertisement-duration cap.

The decision will take effect from the date the amendment to the Cable Television Networks Rules, 1994, is notified in the Gazette.

The move comes in the backdrop of a long-running legal dispute over the advertising limit. The Delhi High Court recently upheld telecom regulator TRAI's quality-of-service regulations prescribing a maximum of 12 minutes of advertising per clock hour, comprising 10 minutes of commercial advertising and two minutes of self-promotional content. Petitions challenging the norms had been pending for nearly 13 years.

Broadcasters had been considering challenging the High Court order in the Supreme Court.

During the prolonged proceedings, the industry continued to operate with advertising levels that exceeded the prescribed limit, while the legal restriction remained in place.

The government's decision to remove the rule now takes away the 12-minute cap under the Cable Television Networks Rules, 1994.

The implications for TRAI's corresponding quality-of-service framework will have to be addressed separately, industry executives said.