BARC sees traction: Appoints a new CEO

Finally, there seems to be some traction at the Broadcast Audience Research Council (BARC). The 
Audience research joint body formed by Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) has finally found a CEO in Partha Dasgupta. Dasgupta, who has been earlier in the media industry with companies like Times Now and Future Media will be responsible to put the organization in place and roll out BARC’s services in a tight frame of time. 
Broadcasters push for an independent audience measurement system to fit into the emerging digital media world led to the formation of BARC. 
BARC story is an old story that started almost six years ago. Over the years there has been considerable debate in various forums, extending even to the Parliament, about the TV audience measurement system, referred to in popular parlance as TRP system. A number of committees were formed, the most recent being the MIB's appointed and Dr. Amit Mitra chaired Committee on TV Audience Measurement. A key recommendation of the Mitra Committee was the establishment of BARC representing the interests of all key stakeholders.
Then the idea was to set it up as a joint venture between the IBF and the ISA on a 60:40 ratio and initial investment of Rs 300 million. However, ISA wanted AAAI also to be a part of the joint body.
BARC has been formulated on the lines of BARB (Broadcasters’ Audience Research Board) of UK. Just like BARB, BARC will also not conduct audience measurement directly but commission independent specialist research vendors.
Unlike Television Audience Measurement (TAM) Media & Research firm which is currently the only TV audience measurement system in India, BARC, will not conduct audience measurement directly but commission independent specialist research vendors. They are also clear that they will not compete with TAM and the primary objective of BARC is to conduct and commission media research using appropriate research methodologies, to provide accurate, up to date and relevant findings relating to broadcast audiences, including TV ratings. 
Currently, according to the broadcasters the major challenge will be to cover all the broadcasting modes in the research – terrestrial, cable & satellite, DTH platforms, developing and new platforms.
BARC will engage in extensive industry consultations with stakeholders, specialist research consultants, existing & potential measurement service providers to identify the key concerns and requirements with regards to audience measurement.
The system of generation of Television Rating Points (TRPs) has come under the close scrutiny of the Government following reports about several lacunae in the present rating system in India. Since TRPs have a major impact on the programming content of Television channels, issues of accountability, transparency and objectivity in TRPs assume greater significance as false and misleading rating can hurt not only broadcasters and the advertisers but more importantly the viewing public.
Most Broadcasters who currently subscribe to TAM data say that there is nothing wrong in the data provided by TAM, but it is inadequate. In a sense that TAM only has 9602 people meters in households across 225 towns in India and the total TV viewing universe in 153 million. 
Dr Amit Mitra Committee report also took a serious view of this small sample size used by TAM. The Committee observed that the rural areas have been left out from the current system of TRP measurement. The Committee has recommended an increase in the current sample size of people meter homes to 15,000 urban & rural households, over a period of two years, and then to 30,000 (Thirty Thousand) over the next three years covering urban areas, rural areas and small towns, J&K, North east  thereby providing a complete geographical coverage of the country.
TAM's initial mandate it got from the industry stake holders was to cover Class I towns (all towns and cities with a population of 1 Lac+). As of today  TAM has increased its coverage to include also Semi Rural Towns (Less than 1 Lac population). 
TAM has never denied to issues in methodology. It is willing to increase the sample size but, the investment to do is very high. For TAM with a top line of a mere Rs 50 crore or so doing this by itself is a tall task. 
Funding has been an another issue when it comes to the increase of sample size. TAM which was also formed by the industry body was never funded by the industry to increase sample size. 
As is understood from sources within the industry till about four years after TAM was launched by a joint industry body (JIB) in India, the initial funding was there. But, after 2002, JIB's interest in funding TAM depleted. Current, increase in people meters  by TAM has been funded through internal accruals.
But, with regard to BARC, Dr Mitra committee report suggests broadcasters, advertisers and advertising agencies should pay a certain percentage of their relevant turnovers to BARC on an annual basis to fund the expansion of sample size for TRP measurement. 
The total cost of expansion of TRP measurement system over 5 years would be around Rs 660 Crores which is approximately 0.32% per year of the total TV industry size in India. The committee feels that this level of expenditure should not be very difficult for the industry to meet. 
Interestingly, the industry bodies that have been so vehemently opposing the methodology of TAM, the above suggestions in Dr Mitra's report has been borrowed from TAM's Methodology Report. 
Will stakeholders who formed BARC be open to setting aside a certain  percentage of their turnovers of this purpose and secondly whether the suggested increase in sample size to 30,000 actually help in getting better results. That’s anybody’s guess.  Mere increase in people meters in households will not do wonders, there has to be a scientific methodology in also selecting the correct sample size to deliver accurate results.  
One will really have to wait and watch how BARC pans out and what services it rolls out and will it be a win-win situation of all the stake holders.