← Policy & Regulation: Sector rules & licensing (all topics)
12-min ad cap (TRAI)
What it is
TRAI's rule limits advertising to 12 minutes per clock hour on television - a maximum of 10 minutes of commercial spots plus 2 minutes of channel self-promotion
It caps inventory absolutely, so a broadcaster cannot respond to demand by selling more time, only by raising rates or improving the audience delivered per spot
Impact on industries
- Protects the viewing experience and prevents an advertising arms race that would degrade the medium for everyone
- Enforced scarcity supports pricing - fixed inventory against rising demand is what allows ad rates to hold in peak seasons
- Removes volume as a growth lever entirely, so revenue growth depends on rate increases, which in turn depend on ratings that are currently suspended
- Binds hardest on news, where breaking-news cycles create demand spikes the channel cannot monetise beyond the cap
- Enforcement has been inconsistent, and the cap sits awkwardly against digital competitors facing no equivalent limit