Ad free channel ends unfair privileges to overseas manufacturers

https://www.observerbd.com/news.php?id=336154

Published : Wednesday, 20 October, 2021 at 12:00 AM

M S Siddiqui

M S Siddiqui
Bangladesh's The Cable Television Network
Management Act 2006 prohibited transmission
of advertisement by foreign Television channel
(sect 19 -sub-sec13) and transmission should be
clean feed. Clean Feed means TV feeds without
any extra on-screen digital graphics or text in
their broadcasts. No TV commercials or cuts, or
even underlying marquee texts are carried on
the television by a TV station with a clean feed.

There is no opportunity for foreign televisions

to broadcast any kind of advertisement in
Bangladesh since 2006. Different government
since 2006 could not implement the law and
reason not explained so far. The present government notified the distributors
about the ban on foreign channels with advertisements in April 2019. The
government discussed this issue with the cable operators and agents many times
before, and lately directed them to be compliant with the law by September 30
this year.

The reason for this is the loss of government revenue. The government does not
get any revenue from the advertisements aired on foreign channels. According
to the Minister for information, Bangladesh had missed out on Tk2,000 crore in
investment due to un-regulated and free advertisements on foreign channels.
Bangladesh yet to assess the loss of market of local manufacturers and loss of
revenue due to free promotion of foreign products.

There are two types of television channel into practice, one is the Pay channel,
where the viewers pay for watching particular channels. The other type of
channel is the Free to Air channels where viewership is for free. Although the
free to air channels operate with the advertisements, they don`t charge the
viewers. However, there is an international trend where Pay channels operate
without showing any advertisements to the viewers as they are charging the
viewers. The narrative behind the argument of clean feed is the policy reform.
Whereby, the Paid T.V channels in America, Europe, and South East Asia
cannot show content with advertisements. However, they can charge the viewers
accordingly.

Unfortunately, the channels are charging Bangladesh viewers for both pay and
free channels. The subscribers are paying for the channels and also those
channels earning money from advertisements, which are illegal according to
Bangladesh law of 2006. The multinational and Indian companies are enjoying
free promotion of their products in Bangladesh and moreover, Bangladesh
viewers paying cost of the transmission. The policy's intentions are meant well
for the consumer rights.

These same channels use to provide the distributors of other countries with
clean feed. The distributors can also clean the feed by cutting the
advertisements. India also don't allow any Bangladesh programme with
advertisement. BTV provide India with clean feed. Some programmes, such as
Ityadi, a very popular in India are sent with advertisements but the Indian DTH-
DD Free Dish server cuts the advertisements before broadcast.

Indian TV stations provide Saudi Arabia and other Middle-Eastern countries

with clean feed and no Indian ads, prioritizing Arabian content. They broadcast
only Middle-Eastern advertisements there, even by dubbing into Arabic. The
broadcasters must not give whatever feed they have to a big market like
Bangladesh. A former DG of BTV said the advertisements aired in Bangladesh
by foreign channels are different from others. Viewers won't see them even in
Kolkata. It means they are giving the ads targeting the viewers in Bangladesh.

Many foreign channels are going on air after paying for the advertisements in
India. Such channels come to India without advertisements and are shown to
Bangladesh filling the content with Indian advertisements there. Most Indian
channels charge Bangladesh viewers but also feature advertisements.
Multinational companies (MNC) have thus never felt the need to use local
television channels as a medium to reach out to Bangladeshi consumers and
Take advantage of investment in India for both Bangladesh and Indian market.
On the other hand, if a local brand has to acquire a market, it has to spend huge
amount for branding and popularizing their products in Bangladesh. Whereas,
an MNC that has its ads broadcasted in foreign channels with more reach has to
spend several folds less to acquire the same market.

The commercials made by MNCs and conglomerates casting foreign celebrities

and featuring foreign locations would disregard Bangladeshi culture, social
customs, traditions, life styles and other fundamental conventions; rather, they
would promote foreign culture, norms and traditions to the extent of roiling the
ethnic and linguistic harmony prevailing in various communities in the country.
If MNCs and conglomerates want to air commercials on Bangladeshi TV, they
will have to shoot them in the country itself. Further they will have to employ
local resources and hire Bangladeshi artistes. This will give a level playing field
for local brands promote the branding of Bangladeshi products, and Bangladeshi
channels will get ads, which will help increase their income.

As for example, Indian 'Parachute' hair oil advertises through foreign channels,
and shown to Bangladesh consumers for not cost, whereas 'Jui' Hair oil can put
ads on local channels only. So naturally, any local consumer who also consumes
the content of foreign channels that broadcast ads will be more conditioned to
buy products of the MNC than the local business. Many of the foreign brands
are already go promotion in Bangladesh and advantage over the domestic
manufacturers. The Clean Feed Policy will help expand also the domestic
advertising industry. It will require domestic advertisers to invest in and produce
more commercials to fill the slots in channels with clean feeds. The Competition
Commission Act 2012 prohibits such undue and uneven advantage to the MNC
and overseas manufacturers.

Many countries have implemented regulatory policies aimed at monitoring

foreign channels and commercials. Our neighbouring countries like India, Sri
Lanka, Nepal and Pakistan have already imposed restriction on foreign TV
channels without clean feed. Bangladesh is late to implement the policy and
even facing resistance from local cable operators and some others. A Supreme
Court lawyer sent a legal notice to the government saying that he will take
necessary legal steps including moving a writ petition before the High Court
against them if they do not resume broadcasting foreign TV channels within a
week.
In the legal notice, he said millions of people in Bangladesh pay necessary fees
for watching foreign TV channels, but they are now being deprived of enjoying
the programs. He claimed that in the legal notice that most people of
Bangladesh enjoy shows on foreign TV channels as functions of local channels
are often substandard. According to the lawyer "Bangladesh law was passed in
2006 but has not been implemented in the last 15 years. And what has been
going on for 15 years has somehow become a custom".

The government has taken a bold decision. The Information Minister &
Broadcasting Dr Hasan Mahmud said, in the interest of the country, in the
interest of the people, in the interest of all in the country's media industry,
Government is working to implement ad-free broadcasting or clean feed of
foreign channels in accordance with the law. So it is never desirable for anyone
to take a stand against the interests of the country and everyone or for someone
to advocate for them.

The implementation of the law will encourage providers of broadcast signals to

substitute commercials on international television networks with local
advertising, as is the case with most developing countries. The Clean Feed
Strategy would give a level playing field to Bangladeshi manufacturers and
foreign manufactures. Although late the government has taken a bold decision.

M S Siddiqui is a Legal Economist