News Broadcasters Association (NBA) has welcomed the recent statements of Mr Manish Tewari, Hon’ble Minister for Information & Broadcasting, that news channels must get an extension on the 12 minute ad cap, “at least till the final phase of digitization is complete”.
According to NBA release the industry is in a dire financial condition, like many other sectors of the Indian economy, with ad revenues being slow, carriage fees continuing to be burdensome and credible subscription revenues being out of sight. In a such a severe economic scenario in the country and on the ground, a forced curb on advertising will have a catastrophic impact on revenues of news broadcasters forcing many to take drastic steps that would have an unavoidable, adverse impact on quality of service and jobs.
According to NBA estimates the ad caps would cause revenue loss across news channels in excess of Rs 500 cr, forcing cuts of at least that amount in costs, if channels have to survive.
Based on the media reports of Manish Tewari’s comments, Cable Operators Federation has sent a memo to the minister resenting that why he is so much concerned about the news channels where as thousands of LMOs are being pressurized by the new regulations to give up their twenty year old business.
Mrs. Roop Sharma, President COFI says that 10+2 ad cap is a law and when all other stakeholders are being forced to keep the impractical deadlines of digitisation and neither Ministry nor TRAI listens to any stakeholder, why extra concern is being shown to news broadcasters. She says, may be it is the election time and Ministry wants to be in the good books of news broadcasters.