Competition panel
probes Prasar Bharti complaint against TAM
source:http://www.business-standard.com
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Competition
Commission is probing public broadcaster Prasar Bharti's complaint against
TAM Media for alleged unfair trade practices in tracking television
viewership in the country.The investigation has been ordered by the fair
trade regulator CCI after finding prima facie evidence of TAM violating
competition norms.
The Competition Commission of India on
March 5 directed its investigation arm Director General (DG) to probe the
complaint. Prasar Bharti had contended that TAM was owned and controlled
by advertising agencies, thereby having a vested interest in generating
data which suited its owners, according to the regulator.
As per the national broadcaster, as a
result of the unfair practices adopted by TAM, its viewership was being
largely under reported thereby causing great financial loss besides
affecting the reputation. TAM Media Research is a joint venture between
Nielsen (India) Private Limited and Kantar Market Research. Within the
television industry, about 34% of revenue comes from advertisements.
Generally, advertisers place their advertisements on various channels
based on viewership as measured by TAM.
TAM measured viewership in the form of TRP/TVR
(Television Rating Points/Television Viewership Ratings).For this purpose,
TAM was using the electronic gadget 'People Meter' connected to TV sets in
selected sample households.
The competition regulator said TAM had
limited its surveys and viewers measurement only to the larger cities with
a population of one lakh or more. According to the Commission, the sample
size of 8,000 homes in a vast country like India, having population of
more than 126 crore was also minuscule and misleading.
"In a country as vast as India with diverse
culture, different languages, where the urban population was only 30 per
cent and rural population about 70%, not installing people meters in rural
areas, prima facie, amounted to restricting use of technology of measuring
viewer's choice to the prejudice of customers (in this case Doordarshan),"
it said.CCI said that providing people's meter in rural areas amounted to
discrimination to Doordarshan and other similar channels, if any, catering
to the needs of the rural areas. Prasar Bharti, which runs Doordarshan and
All India Radio networks, filed the complaint in November 2012.
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