Centre Notifies Amendments to Cable TV Rules, Removes 12-Minute Ad Duration Cap

The Indian government has officially notified amendments to the Cable TV Network Rules, removing the 12-minute advertising duration cap for television channels. Industry analysts note the move provides regulatory flexibility and a potential revenue benefit, though fundamental challenges around viewership trends remain.

The Centre has officially notified amendments to the Cable TV Network Rules, removing the 12-minute ad duration cap previously imposed on television channels. According to the Information and Broadcasting Ministry, the decision was taken to enable a level playing field, fair competition, and ease of doing business.

Market analysts have termed the development directionally positive for television broadcasters. The regulatory change is expected to provide greater flexibility in monetising inventory and help address the regulatory disadvantage that traditional television broadcasters faced compared to digital platforms.

However, industry reports point to a mixed operational environment. According to TAM AdEx data, TV ad volumes dipped by 7 percent between January and July. A report by Elara Capital noted that the move could lead to a revenue benefit in the range of 1 to 3 percent.

Karan Taurani, EVP at Elara Capital, stated in the report that much of the industry already operates at or above the previous cap. News channels typically carry 16 to 18 minutes of ads per hour, while live sports offer limited scope for additional inventory. Taurani added that television's primary challenges relate to declining viewership and content engagement, noting that pay-TV households declined at a nearly 4 percent compound annual growth rate during FY20–25, even as connected TV (CTV) households expand.

Where demand and inventory utilisation remain healthy, broadcasters will have the opportunity to monetise additional minutes while protecting yields. Conversely, in segments where demand is weak, an increase in higher supply could increase advertiser negotiating leverage and place downward pressure on rates.

"Removing the legacy ad cap is a welcome step toward regulatory parity for traditional television broadcasters facing stiff competition from digital and connected TV platforms. While this flexibility allows media companies to better monetise high-demand slots and drive minor revenue gains, businesses must remain mindful of underlying viewership shifts. Long-term sustainability will depend on content engagement and adapting to changing consumer viewing habits rather than simply increasing ad volume." — Dr. Shishir Gupta, Founder & CEO, StartupLanes