NBP: TRAI silent on OTT regulation & data privacy?

In its recommendations on inputs for National Broadcasting Policy, TRAI touches on a lot of peripheral issues rather than recommending core issues which impact growth of the sector, say experts

by Aditi Gupta
Published - June 24, 2024
7 minutes To Read
NBP: TRAI silent on OTT regulation & data privacy?

Over two months after it sought stakeholders’ views on the proposed National Broadcasting Policy through a consultation paper, the Telecom Regulatory Authority of India (TRAI) came out with its recommendations on the same on Thursday, but remained silent on several hard-pressed issues like regulation of OTT platforms and DD FreeDish, say industry experts. The authority has also stayed away from talking about safeguarding consumer privacy while collecting data and the issue of creative freedom getting curbed.

In the 180-page document, TRAI has listed out the recommendations and suggestions given by stakeholders in the consultation paper issued on April 2 and during the open house discussion (OHD) held on May 15.

An industry observer, on the condition of anonymity, shared that while TRAI has pushed for government-backed funding for local content creators and regional OTT platforms, it has missed touching upon a major aspect of regulation of the platforms.

“The authority talks about funding and incentivising local news, content creators, film makers to share their work on OTT platform. It has also talked about providing funds to regional OTTs. However, a major issue has been the regulatory framework to be put in place for OTT platforms. TRAI is silent on this. It should have been clearer,” said the expert.

Regulatory framework

The recommendations are unclear about the regulation parity among the stakeholders - cable operators, broadcasters, OTT and DD FreeDish -, with one of the industry experts saying that equitable regulatory frameworks are a must.

TRAI observed that with technological disruptions and digitization, new services have come up and new players are becoming part of the platforms and different devices are offering consumers other choices of accessing content besides the appointment TV, so the regulatory practices should allow freedom to innovate, adopt and harness emerging technologies in the broadcasting sector.

However, it does not clearly talk about the implementation part of this.

“TRAI touches on a lot of peripheral issues rather than recommending core issues which impact growth of the sector, like the need to revisit the need for tariff and micro-management of the broadcasting sector. They also failed to set a roadmap for the introduction of forbearance which would enable the sector to give competition to the emerging digital platforms.

“They bizarrely got into peripheral issues like creation of SEZs, framework for public disclosure of OTT viewership data, centre for broadcasting technology, public-private partnership to increase TV penetration in rural areas, without explaining how differential pricing could be done in the current one-size-fits-all tariff regime,” said another senior industry expert, who did not wish to be named.

Expressing a similar view, Yasin Hamidani, Director, Media Care Brand Solutions, said, “The policy should ensure that all stakeholders, including traditional broadcasters, existing and emerging OTT platforms, operate under equitable regulatory frameworks. This would prevent market distortions and encourage healthy competition, fostering innovation and growth across the sector. Establishing clear, uniform guidelines will be essential for maintaining a balanced and dynamic broadcasting environment.”

In a differing view, Partho Dasgupta, Managing Partner - Thoth advisors and ex-CEO, BARC India, said it is a welcome change to see there is no intent expressed to regulate OTT. However, he said that there needs to be seamless distribution of content.

“The industry is maturing and would find its own mechanisms to self-regulate. On the issue of providing a level playing field and promoting growth, the intent should be to make distribution of content seamless and friction-free in the cable and satellite systems - there is still a lot of noise in the system and distribution has become too expensive for investments in quality content,” he said.

Audience measurement

While some experts lauded TRAI for being in favour of multiple rating agencies for a transparent audience measurement, others noted that it remains unclear on the aspect of how to implement data protection measures to safeguard consumer privacy while collecting and viewing data.

“The TRAI's recommendations for a transparent and credible audience measurement and rating system in the National Broadcasting Policy 2024 are largely in the interest of all stakeholders. Accurate and reliable audience metrics are crucial for broadcasters, advertisers, and consumers, fostering fair competition and informed decision-making.

“However, to ensure the system's robustness, additional points should be addressed such as ensuring the system captures diverse demographics, including rural and underserved regions, to provide a comprehensive view of audience preferences. Also, we need to implement strong data protection measures to safeguard consumer privacy while collecting viewing data. Further, regular third-party audits can ensure the integrity and accuracy of the measurement system. The system should also adapt to emerging technologies like AI and big data analytics for more precise audience insights and lastly a clear communication about the methodology and metrics used should be provided which will build trust among stakeholders,” said Hamidani.

Experts said that while the policy is a significant step forward, addressing these few points could enhance its effectiveness and acceptance among all parties involved.

Talking about the measurement issue, Dasgupta said, “In my view the RPD (return path data) initiative should be implemented. We proposed it to TRAI and MIB in 2017. It’s high time it was implemented. Also, measurement of all screens should start - we had tested and piloted the digital measurement system as well but it still remains to be implemented.”

?According to Sanjay Trehan, Digital & New Media Advisor, “Having multiple rating agencies is a good idea. Principally, competition in any sphere is healthy, and over time, multiple agencies would also establish their own specialisation and niches, and help propel growth.”

In its recommendations, TRAI noted that the current scenario reveals that BARC India is operating with a panel size of only 55,000 households and a smaller panel size inherently limits the scope of data available for analysis.

“Conversely, a larger panel size not only improves the robustness of the system but also adds substantial weight and value to measurement ratings. Therefore, the authority is of the view that having a larger panel size has its own benefits for audience measurement. Expanding panel size and embracing advanced technologies are crucial for ensuring a more credible audience measurement,” TRAI said.

Making India a global content hub

On the issue of promoting India’s soft power and content globally, Dasgupta said that more needs to be done.

“Would the MIB think of financially and structurally helping private players to reach out globally? Will it provide financial and other benefits? Prasar Bharati in my view has failed to be a model public broadcaster due to its several problems. The new broadcasting policy should emphasise on turning it around structurally and use its infrastructure for private players to utilise.

“Finally, the sector should be set free to price its content and distribute on its own and better dispute resolution mechanisms should be set up for any inefficiencies in the system,” he said.

Trehan said I like the approach of ‘data-driven policy decisions’ as it would eliminate subjective biases. Also, making India a ‘global content hub’ is an audacious goal but is doable as the country is a repository of creative talent. In all, NBP is fraught with possibilities and extremely progressive in its formulations.

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