TAM's future still unclear, court hearing adjourned till 12th Feb

While the media fraternity awaited a verdict from the Delhi High Court on Kantar Media’s petition in the television guidelines issue, assumptions and speculations did not seem to end. But, as expected by many, the court has adjourned the hearing till 12th February 2014.

It may be recollected that Kantar Media, which is owned by global advertising giant WPP, a 50% shareholder of TAM Media Research (the other half is held by Neilsen), the country’s sole television ratings agency, had moved the High Court in Delhi against the new guidelines in the segment notified by the central government.

For the record, according to the guidelines, no company either directly or indirectly (through its associates) is allowed to hold more that 10% paid up equity in a rating agency, if it holds a stake or a part of a broadcaster, advertiser or an advertising agency. TAM, as we know, was given 30 days to undo its cross-holdings. Kantar’s shareholding of 50% in TAM, is thus a violation of these guidelines, as the Martin Sorrell-led advertising and marketing services firm has investments in other business ventures in the country. Kantar Media had stated that the new guidelines on TV rating agencies would put TAM out of business, a ratings agency that has been operating in this market for the last 15 years.

The delay in the receipt of the verdict is a growing concern for advertisers and broadcasters alike. However, it remains to see how things unfold in the next hearing.