Clean feed policy comes into effect from Friday midnight

The much-awaited clean feed policy in television systems comes into effect from Friday midnight.

Issuing a press note today, the Ministry of Communication and Information Technology directed the foreign television channels, which are being broadcast in Nepal to abide by the clean feed policy from Friday. Newly appointed minister for Communication and Information Technology Parbat Gurung – in the regular press meet – to announce the cabinet meeting decisions today – shared that the government had taken a ‘historic decision’ to implement the clean feed policy effective from Friday midnight under the Advertisement Regulations Act 2019.

The Advertising Association of Nepal (AAN), and other various media related organisations welcomed the government decision claiming that the television advertisement market will be expanded by double after the move. “The AAN had been asking the government to bring the clean feed policy since a decade,” a press note from AAN reads, adding that the clean feed policy also guarantees the sovereignty of a country. 

With the government decision, the international advertisers have been barred from airing their advertisements in foreign television channels. The clean feed system allows television signal distributors to replace advertisements in foreign television channels with local advertisements as practiced in most of the developed countries.

Nepal Ice Crity Awards concludes

The 11th Nepal Ice Crity Awards –organised by the Advertising Association of Nepal (AAN) in association with Nepal Telecom – concluded here today.
Inaugurating the event, minister for Information and Communications Gokul Prasad Baskota, said that the government is committed to implementing the clean feed policy in the country. “The government is preparing a bill and framework by cooperating with the concerned stakeholders,” he said, adding that the implementation of the clean feed will benefit the Nepali advertising industry.
The event also witnessed the distribution of awards under 31 different categories, according to a press note issued by the Advertising Association of Nepal (AAN). “Among the 61 nominee agencies, some 23 agencies received the Crity awards under different titles,” it reads, adding that Avani Advertising received six awards, Business Advantage received six awards and Prisma Marketing four awards. “Likewise, Out Reach Nepal grabbed four awards, V-Chitra three, Consult One three, Digitalin three, Key Advertising two and Original Entertainment grabbed two awards in the event.”
Meeting Point grabbed two awards, whereas Ad Desire, NNS Creation, Creo Communication, Digiadvertising, Full Circle, Makeways, MX Creation, Mars Advertising and Research along with Media Journal received one award each under various titles. “The Square Design and White Feathers also received one award each under different categories,” the note reads further.
The awards were sponsored by Nepal Ice and powered by CG Cement.

TV screens to go blank next week

Nepali TV screens will go blank next week due to cable operators’ protest against the government decision to implement the clean feed.
On June 24, cable operators will not broadcast any foreign pay channels that run advertisements for a whole day starting June 24, 12:00 am opposing the government’s proposed Advertisement (Regulation) Bill.
According to the proposed Bill, the foreign channels must relay television contents in Nepal without advertisements from the date of implementation of the rule, which, according to the cable operators, will throw them out of business.
However, the Advertising Association of Nepal (AAN) that has been lobbying for clean feed for last one decade, has welcomed the Bill, and urged the government to implement it immediately, unlike earlier attempts. This is not the first time, governments trying to implement clean feed rule asserting that the empty slots in foreign television content can be given to domestic advertisers, which will expand the domestic advertising market and the government will also get more revenue.
After a long debate, the Bill was tabled by Information and Communication Minister Gokul Prasad Baskota in January and is likely to be endorsed by the Lower House.
According to president of the federation of cable TV Association of Nepal Sudhir Parajuli, the authorities have not done proper research on how the rule can backfire. “The viewers will start subscribing to foreign channels through set-up boxes and viewing cards of Indian DTH operators, which are easily available in Kathmandu,” he said, claiming that the fate of Nepali channels, advertisers and even cable operators – once clean feed is implemented – will hang in uncertainty caused by the loss of customers and, ultimately, revenue.
Indian broadcasters – who feed most of the foreign channels to Nepal – must streamline the contents to make sure they run without adverts, which requires them to set up a separate company dedicated to serving Nepal. It will increase their cost as Nepal generates ‘very low average revenue per user’, which will make the Nepali service providers pay higher downlink – including subscription or broadcasting – costs, which will not be economically feasible.
He also said that the government will lose revenue from annual license fees it takes from all the channels – which are watched widely by the Nepali population – if the foreign channels stop.
Earlier in 2017 too, government tried to implement the clean feed rule under National Broadcasting Policy but the domestic service providers and Indian stakeholders, who used the diplomatic route to relay their objections.
After the pressure from different quarters, the government – that had announced in the budget for the fiscal year 2017-18 to implement clean feed – had to backtrack on its decision citing a lack of preparations.

AAN slams advertisement policy

The Advertising Association of Nepal (AAN) has criticised the policy to distribute government advertisements to the media in a proportionate manner. It is a replication of former king Gyanendra's one-door system in advertisement, they said in a national meeting today.

Former king Gyanendra had introduced a one-door system on February 1, 2006, during his direct rule to influence the media. But the decision was revoked after continuous struggle by advertising agencies. "The UCPN-Maoist led government has introduced the proportionate distribution system after seven years and AAN is against it," said president of the association Raj Kumar Bhattarai.

The policy aims to distribute advertisements of government agencies to newspapers, radios (including FMs), television channels and others in a proportionate manner.

According to AAN, despite the cabinet decision on the advertisement policy on January 31, 2013, authorities have not provided details of it to the association. "The government has not provided us a copy of the decision, so we believe there is something suspicious in it," he said, adding that the advertising sector will not accept it at any cost. AAN will fight it and compel the government to withdraw it, he added.

About 178 advertisement agencies are in operation in the country and doing business worth about Rs 3.5 billion. The advertisement market has been stagnant due to slow economic growth following the political instability and turmoil for years.

The association has warned the government that it will fight the decision in court. It has also sought support from intellectuals and professionals for their protest. AAN will also take to the streets if the decision is not withdrawn soon, Bhattarai warned.

BUDGET BUZZ: Bring separate Act to promote ad business

The advertisement market has developed due to globalisation and industrialisation and also due to development of media, communication and broadcasting technologies. Nepali advertising sector that is worth Rs 3 billion per year also wants its problems to be addressed in the budget.

· Production and distribution of Nepali feature films and advertisements are both governed by the same Cinema Act and Regulation 2026. It should be noted that a feature film is a two-hour affair and costs millions to make whereas the production cost of an a minute-long advertisement is relatively very low. The two genres should not be governed by the same Act and regulations. There are difficulties in censorship and other procedures. The charge for ad films should be decreased to encourage ad films as they cost less in comparision to feature films. Thus, the government should decrease the government tax for ad films.

· The government should also amend the ad film censorship regulation according to the global trend. Until such amendment, AAN should be given the responsibility of coordinating, regulating and monitoring as it is the umbrella organisation of advertising agencies.

· Currently, cable operators are broadcasting various foreign channels in Nepal. The government should prepare regulations for them as well as they also have to follow the law of the land. According to norms, channels downlinked from Nepali sky have to either broadcast clean feed. If they have advertisement feed, they should not charge viewers. The government should register foreign channels according to international norms and ban the foreign advertisements in them. Domestic advertising agencies would benefit and local ads depicting Nepali culture, tradition and resources would be encouraged, if the government makes it mandatory for foreign channels to air clean feed.

· The government should provide tax relief to advertising agencies purchasing tools and machinery and equipments like high tech cameras and computers.

· Budget should ensure that every multinational company invest their 10 per cent budget on advertisement in Nepal.

Nirmal Poudel

President

Advertisement Association of Nepal (AAN)