The Centre has decided to remove the 12-minute-per-hour limit on television advertising, giving broadcasters greater flexibility in deciding how much commercial content they carry.
The Ministry of Information and Broadcasting said the move is intended to promote fair competition, encourage business flexibility and improve ease of doing business in the broadcasting sector. The change will take effect after the amendment to the Cable Television Networks Rules, 1994, is notified in the Gazette.
The 12-minute advertising cap was introduced in 2006, when India’s television industry was considerably smaller. At the time, the country had only about 62 television channels. Today, the number has crossed 900, while the way viewers receive and consume television content has changed significantly.
The government said the broadcasting sector has undergone major technological and structural changes since the rule was introduced. Cable television, which was largely analogue two decades ago, has been digitised, while distribution platforms such as Direct-to-Home (DTH), Cable TV, Headend-in-the-Sky (HITS) and Internet Protocol Television (IPTV) have expanded their capacity.
These platforms can now offer viewers hundreds of channels, giving audiences far more choice and creating greater competition among broadcasters.
Under the existing framework, television channels can carry up to 12 minutes of advertising in an hour. This includes up to 10 minutes of commercial advertisements and two minutes of channel self-promotion.
With the cap being removed, broadcasters will no longer be required to follow a fixed advertising duration once the amended rules come into force.
The government said the change was necessary because the competitive environment in which television operates has changed considerably. Traditional broadcasters now compete not only with hundreds of other television channels but also with digital media platforms and streaming services for audiences and advertising revenue.
Unlike television broadcasters, digital platforms are not subject to a similar statutory limit on the duration of advertisements.
The Ministry said television broadcasting remains heavily dependent on advertising revenue, whether channels operate on a pay-TV or free-to-air basis. Removing the fixed ceiling, it said, would help create a more level playing field between television and digital media.
For broadcasters, the decision could provide greater control over their advertising inventory. Channels will be able to decide how commercial time is distributed across programmes and time slots, potentially allowing them to generate additional revenue from high-viewership programming.
The change could be particularly significant for news, entertainment and sports channels, where advertising demand is closely linked to audience numbers. Broadcasters may now have greater scope to adjust their commercial strategies according to demand from advertisers.
For advertisers, the removal of the cap could increase the amount of television advertising space available in the market. However, the value of that additional inventory will depend on audience reach, programme popularity and the rates broadcasters are able to command.
The government has also stressed that removing the duration cap does not mean television advertising will become completely unregulated. Broadcasters will continue to be governed by the Programme and Advertising Code and other applicable provisions governing advertising content and presentation.
The change could nevertheless have a direct impact on viewers.
With broadcasters no longer restricted by a fixed 12-minute ceiling, some channels could choose to carry longer or more frequent commercial breaks. However, broadcasters will also have to consider the risk of losing viewers if advertising becomes excessive.
That consideration has become more important as audiences have access to a growing number of alternatives, including streaming platforms, social media and online video services.
The government’s decision effectively puts greater emphasis on market forces. Broadcasters will have more freedom to monetise their airtime, but their ability to do so will ultimately depend on whether viewers continue watching and advertisers remain willing to pay for the additional inventory.
The decision also comes against the backdrop of wider efforts to simplify regulation in the broadcasting sector. The government has been reviewing rules governing television and radio services with the stated objective of reducing regulatory complexity and improving the ease of doing business.
For India’s television industry, the change marks a significant shift from the regulatory environment of 2006. At that time, limited cable capacity and a much smaller number of channels meant viewers had relatively few choices. Today, the market is far more fragmented, with traditional television competing with digital platforms for both audiences and advertising budgets.
