TV broadcasters are preparing legal responses to show cause notices issued by the Telecom Regulatory Authority of India (Trai) seeking explanations for not complying with the 12-minute-per-hour advertising cap.
Industry representatives said the Indian Broadcasting and Digital Foundation (IBDF) and the News Broadcasters and Digital Association (NBDA) are discussing potential legal options.
People familiar with the matter said a decision on the next steps forward by the broadcasters is expected next week.
Several executives said the notices were unexpected and, in their view, lacked adequate justification since related proceedings are currently under judicial review. They added that enforcing the ad cap at this stage could adversely affect the sector.
Rising operating costs, advertising slowdown, and continued migration of subscribers to OTT platforms and DD Free Dish are already straining broadcasters.
On November 18, Trai issued show cause notices to broadcasters for allegedly not complying with the 12- minute-per-hour limit and asked them to respond within 15 days on why action should not be taken.
Executives said implementing the cap would reduce available inventory at a time of falling advertising yields. While lower inventory could theoretically support higher pricing, they said demand for TV advertising remains subdued with advertisers having more cost-effective alternatives.
Industry participants noted that many broadcasters, particularly free-to-air channels, currently air more than 12 minutes advertising during prime time as it is still their primary revenue source.
A senior advertising executive, speaking on condition of anonymity, said TV advertising is seeing tepid demand and the timing of the notice has added to industry concerns. The executive said many channels are barely managing to fill inventory and that even if inventory shrinks due to the ad cap, broadcasters will not be able to raise rates because of prevailing weak demand.
According to Regulation 3 of the ad cap regulation, no broadcaster shall, in its broadcast of programmes, carry advertisements exceeding 12 minutes in a clock hour.
Another executive said TV broadcasting is bearing the brunt of over-regulation while online video remains unregulated. The executive said there is no limit on technology giants on the number of ads they can show and questioned why such rules should apply only to TV broadcasting.
TV advertising volume in India fell 10 per cent from a year earlier in the first nine months of 2025, per TAM AdEx data. Advertising revenue declined 6 per cent to ₹29,400 crore in 2024 due to a corresponding drop in ad volumes and an over 10 per cent reduction in advertisers on the medium, according to the FICCI EY report.
