Delhi HC adjourns ad cap hearing till 6th May 2014

Looks like the regulation system in the media business will take its own sweet time to come into force. The ad-cap case has been adjourned till the 6th of May 2014 bringing some more respite to the broadcasters. In a hearing held on 13th march 2014, the case was heard in the Delhi High Court in the presence of Justice Siddharth Mridul. However, it may be noted that the interim order (given in December 2013) that prevents the Telecom Regulatory Authority of India (TRAI) from taking any action against petitioners remains in effect. Sources close to the development also inform that the petitioner, the News Broadcasters Association (NBA) will have to file a rejoinder reply in this case and has sought a time period of four weeks.

It may be recollected that the NBA had challenged the ad cap rule, challenging that TRAI does not have jurisdiction to regulate commercial airtime on television channels. Some of the parties associated with the case include News Broadcasters Association (NBA), B4U, 9X Media, TV Vision, Sun TV Network, E24, and Kalaignar TV against the Telecom Regulatory Authority of India (TRAI). However, it must be noted that four major broadcast networks namely Star India, Zee Entertainment Enterprises Ltd, Multi Screen Media and TV18 Group are following the regulation.

We learn that broadcasters, specifically news and regional broadcasters have been vocal about their fear stating that the capping commercial airtime will curtail their ad-revenue which is already under threat, due to apathetic economic condition of the country and fragmentation in the business. Arguing further these parties have also said that the 10+2 ad cap must be incorporated in the system only after the benefits of cable TV digitisation start seeping in the business.

Keep watching this space for more updates on this issue.