New guidelines will disqualify TAM: Kantar CEO

New Delhi: On 20 January, research firm Kantar Media, part of marketing services conglomerate WPP Plc, published an advertisement in Indian newspapers stating facts about the television audience measurement conducted by ratings agency TAM Media Research Pvt. Ltd, a 50:50 joint venture between Kantar and Nielsen.

The advertisement was in response to new guidelines for television ratings agencies notified by the government on 16 January that automatically disqualify TAM from operating in India. Eric Salama, chairman and chief executive of Kantar, admitted that the government guidelines were unrealistic and came with an impossible deadline. Edited excerpts from an email interview:

What was the purpose of the ad?

To reintroduce some facts into what has become a very emotional and unbalanced discussion.

Isn’t it too late to come up with an ad like this considering the new ratings agency guidelines have been notified?

It’s never too late to discuss things.

What is the recourse for TAM now? Will it approach the courts?

Wait to see.

Why have things come to such a head? Was TAM arrogant and did not pay heed to the complaints of the industry earlier?

Of course we did try. And, no, I don’t think we’ve been arrogant. Actually I think TAM has done an incredible job in very difficult circumstances and faces huge pressure from various quarters.

Do the new TV ratings guidelines disqualify TAM from running a business in India?

If the guidelines went through as they are currently presented, it would disqualify TAM. But they would also disqualify most reputed organizations. Worse still, the latest guidelines would severely reduce the safeguards we have put in place to prevent panel tampering. The latest guidelines go way beyond anything that even Trai (Telecom Regulatory Authority of India) had suggested and display a worrying lack of understanding of what is needed to run and deliver a high quality service. The latest guidelines would leave the industry in a much worse state than now with less competition and lower panel quality.

But if TAM has to operate in India, it will have to get a licence within 30 days, operate 20,000 boxes and move away from WPP, the advertising network that has a major equity in the company through Kantar. Are all these changes possible in 30 days?

Of course not. No one could comply in that period of time. There is a danger that the industry will be left with no ratings.

We have already complied with most of Trai’s recommendations but the clause on cross-ownership is unworkable and, more importantly, would reduce the level of competition possible in the market.

In no other market in the world where the provider has an equity stake from broadcasters and agencies—such as UK, France, Spain—has this been raised as an issue. Even Mediametrie which is rumoured to be in conversation with Barc (Broadcast Audience Research Council) is partly owned by broadcasters and agencies. Will that be an issue for the government or Barc? They (Mediametrie) have no meaningful experience of operating outside France. And I understand they are about to lose the one minor contract they have outside France, that of Morocco. With all that, does it strike you as the choice for the future?

Ramping up to 20,000 is in our plans and budgeted but will take a bit longer than six months and will not be possible with the sword of cross-ownership restrictions hanging above us.

Are you in favour of multiple television ratings agencies in a single market?

We are in favour of competition and would not want any legal impediment to other companies being able to launch competitive services in the market.

But the industry itself tends to want one currency as it uses it for trading. There are very few markets around the world where the industry supports more than one currency. We are in favour of Barc with genuine representation and engagement from all three stakeholder bodies in much the same way as exists in UK and many other markets that operate that kind of model.

As long as it lasted, how profitable was TAM in India?

We have invested heavily in the service and have approval to ramp up the panel to double its existing size. We do not disclose financial information but the business is profitable and has low budgeted margins.