legal challenge

TV broadcasters are preparing to challenge the recent show cause notices issued by the Telecom Regulatory Authority of India (TRAI) over alleged violations of the 12-minute-per-hour advertising cap. Broadcasters, along with industry bodies such as the Indian Broadcasting and Digital Foundation and the News Broadcasters and Digital Association, are evaluating legal strategies, with a final decision expected next week. Executives across the sector said the notices caught them off guard, especially as the matter is still pending before the Delhi High Court. They argued that enforcing the cap now could worsen the financial stress on broadcasters, who are already grappling with rising operational costs, weak advertising demand, and audience migration to OTT streaming platforms and DD Free Dish. The notices, issued on November 18, have given broadcasters 15 days to explain why action should not be taken for allegedly exceeding the advertising time limit. Industry leaders say many free-to-air channels currently rely heavily on ad-heavy prime-time slots for revenue, and cutting inventory now would strain them further. They added that despite reduced inventory theoretically pushing up ad rates, the current muted advertiser sentiment makes price hikes unrealistic. Executives also questioned the regulatory imbalance, pointing out that digital video platforms face no similar restrictions on ad volumes. They argued that the TV sector is over-regulated at a time when it is already losing market share. According to TAM AdEx, TV ad volumes fell 10% year-on-year in the first nine months of 2025. The FICCI EY media report showed that TV advertising revenues dropped 6% to ₹29,400 crore in 2024 due to reduced ad volumes and a decline of over 10% in the number of advertisers. Legal experts said TRAI may push for an expedited hearing on the ad cap case, which has been pending for more than a decade. The Delhi High Court had granted interim protection in 2013, barring coercive action against broadcasters. The case is now scheduled for its next hearing on January 27, 2026, with the interim order remaining in force until then. Source: Economic Times