$50 mn investment expected as Ministry of I&B eases TRP ratings restrictions
Global media firms and big tech eye India’s expanding TV and OTT audience measurement space. Firms could inject over $50 million into the Indian market, deploying AI-driven analytics, real-time tracking tools, and wider sampling techniques, say experts.
ADVERTISEMENT
In a landmark move, the Ministry of Information and Broadcasting (MIB) has amended guidelines that effectively dismantle key restrictions in India’s television and digital audience measurement industry. The removal of cross-holding and Indian ownership limitations is being seen as a direct invitation for global firms to enter the Indian TRP (Television Rating Points) measurement ecosystem. The 'liberalization' comes at a time when India’s more than $10 billion advertising market demands greater transparency and technological innovation in viewership data.
Foreign Direct Investment (FDI) in the TRP space has been a long-standing industry aspiration, say industry observers. Now, with the policy shift, foreign players have a clear runway to establish their own measurement systems, provided they comply with India’s data protection, audit, and operational laws.
“This is a seismic shift,” says advocate Shivalika Midha of Jotwani Associates, “and aligns with India’s broader FDI reforms and media liberalization. But with it comes an imperative for strict governance and regulatory vigilance.”
According to Midha and other experts, global firms like Nielsen, Kantar, and Comscore could inject over $50 million into the Indian market, deploying AI-driven analytics, real-time tracking tools, and wider sampling techniques.
This is expected to disrupt the monopoly long held by BARC (Broadcast Audience Research Council), the industry-backed ratings body established to bring order after controversies surrounding its predecessors, TAM and INTAM.
"The easing of ownership restrictions creates a viable pathway for global players to enter or expand in India. This development is likely to inject capital, methodological diversity, and global best practices into what has historically been a domestically controlled and often opaque space.
From a legal perspective, this move enhances competition and has the potential to restore credibility to the audience measurement system, particularly in light of previous manipulation controversies.
Sonam Chandwani of KS Legal points out that while foreign players bring capital and methodological diversity, their entry also raises data sovereignty and legal concerns.
By dismantling restrictive barriers, the policy seeks to end BARC’s monopoly, which, with only 58,000 people meters for 230 million TV households, fails to reflect the digital pivot to OTT and smart TVs.
“Without strict contractual obligations around data localization and third-party audits,” she warns, “there’s a risk of favouritism toward global platforms and legal challenges under India’s Competition and Data Protection Acts.”
Still, industry sentiment is cautiously optimistic.
Vivan Sharan of Koan Advisory sees the MIB’s move as timely.
“It creates space for more accurate and real-time measurements, especially as content consumption shifts to multi-screen environments. Global expertise will modernize a fragmented and under-representative system."
According to him, the policy shift signals that India understands value of independent and sophisticated audience measurement solutions - particularly at a time when consumer viewing habits are evolving. "Ultimately, consumers stand to benefit from this move as it will mean better insights and more reliable measurement and ad-targeting. Availability of reliable insights also means industry players can make smarter decisions in a complex multi-screen environment."
“With the MIB opening up ratings market, multiple players can enter the fray,” says an insider, indicating that even infrastructure-light setups leveraging DPO data could be launched with an estimated Rs 1,000 crore investment.
The Trust Issues
However, the legacy of India’s audience measurement is a double-edged sword.
BARC, despite criticism over limited sample sizes and operational lapses, remains trusted due to its industry governance structure. This, many say, will be difficult for private foreign entities to replicate, unless they collaborate with Indian players or build new trust mechanisms.
Says Ashish Bhasin, Founder of The Bhasin Consulting Group, "Why would anybody trust an (foreign) agency? One trusts BARC today because it's an industry body which has self-correcting mechanisms and which has all the industry stakeholders as a part of it. But if it's a private sector player, why would anyone trust it, if it is just trying to sell you the data?"
He adds, "We've seen in the past, what happened with TAM and INTAM and the lists getting leaked and so on and so forth, which is why BARC was formed in the first place."
"Any agency has to be industry governed, has to have the participation of all the stakeholders. And the three key stakeholders in this context are advertising agencies, the broadcasters and the clients. Just having a commercial organization running it exposes us to the potential of corruption of data, which is what was happening in the past, as well as bias is creeping in. Otherwise sooner than later it will lead to chaos. Stakeholders should tell the Ministry that don't fritter away our resources. Instead, let's pull them together and make a bigger, robust sample."
Bhasin warns against scaling up without caution. "India’s diversity is immense; sample sizes will be insufficient if agencies operate independently. The country needs one robust, well-governed measurement agency, not fragmentary alternatives."
MIB eliminates ownership barriers in audience measurement, triggering a potential wave of FDI and innovation, but concerns over governance, data integrity, and industry fragmentation loom large. The lifting of cross-holding limitations and the removal of mandatory Indian ownership heralds a new era of innovation and competition.
Yet, some insiders caution the policy pivot may not solve BARC’s structural issues: incomplete sample sizes, lack of OTT metrics, and erosion of confidence.
A senior media executive notes that BARC’s limited 0.025% sample of 230 million households undermines its relevance. The question remains: will foreign competition catalyze systemic improvements — or only deepen confusion?
Former MD of Amul, RS Sodhi, adds that the costs for setting up the system are prohibitive and hence other players don't get in. The removal of restrictions may encourage others to participate. "However the possibility of multiple currencies for measurement and which measurement to adopt will create some confusion initially till the dust settles."
For now, India’s ad market stands at an inflection point. The MIB has unlocked the door; whether foreign capital modernizes measurement without undermining trust depends on governance, industry cohesion, and transparency. As competition intensifies, the MIB, some say, could also introduce more oversight mechanisms including mandatory audits, disclosure of measurement methodologies, and compliance frameworks to ensure transparency and neutrality.
