Broadcasters to take Ad-Cap battle to Supreme Court soon after HC blow

DELHI: India’s leading TV networks are preparing to take their fight against advertising limits to the Supreme Court after the Delhi High Court upheld the Telecom Regulatory Authority of India’s (TRAI) power to enforce a strict 12-minute-per-hour cap on television advertisements, according to a report by The Economic Times.

The ruling, delivered on May 29, has sent ripples through the broadcasting industry, which fears that shorter ad breaks could translate into a significant hit to revenues at a time when advertising remains the lifeblood of television.

According to industry insiders, broadcasters are united in their view that implementing the cap could severely impact business economics. “Broadcasters across the board are planning to challenge the Delhi HC order before the Supreme Court since implementation of the ad cap will be detrimental to their business,” a lawyer familiar with the discussions said.

The stakes are high. India’s linear television industry generated nearly Rs 62,000 crore in revenue in 2025, with advertising contributing Rs 26,300 crore and subscriptions accounting for Rs 35,400 crore, according to a Ficci-EY report. For many pay-TV channels, advertising contributes between 50 and 70 per cent of total revenue, while free-to-air broadcasters depend on it entirely.

At the heart of the dispute is a question that extends beyond commercials: how far can TRAI’s powers go?

The legal battle dates back to 2012 when TRAI directed broadcasters to comply with advertising limits under its quality-of-service regulations. Broadcasters challenged the move, arguing that the regulator’s role should be confined to carriage and tariff-related issues rather than advertising practices.

However, a division bench comprising Justices Anil Kshetarpal and Amit Mahajan ruled that TRAI’s responsibility to protect consumer interests includes safeguarding the viewing experience. That interpretation gives the regulator authority to limit the amount of advertising shown on television channels.

The judgment is being viewed as more than just an ad-cap ruling. Legal experts believe it could broaden TRAI’s influence over the broadcasting sector, potentially extending its oversight beyond distribution and pricing into areas traditionally considered part of content strategy.

Industry executives are particularly concerned about the court’s observation that broadcasters utilise spectrum, a public resource, which may justify greater regulatory intervention in the public interest.

“This ruling could have far-reaching implications for TRAI’s future oversight of broadcasters,” said a lawyer involved in the matter.

The revived regulation has long been a sore point for television networks. Under existing rules, channels can broadcast a maximum of 12 minutes of advertisements every clock hour, including up to 10 minutes of commercial advertising and two minutes of self-promotional content.

Broadcasters have historically struggled to stay within those limits, particularly during prime-time programming. In 2017, TRAI flagged more than 100 pay-TV channels including those operated by major networks such as Star India, Sony Pictures Networks India, Zee Entertainment Enterprises, Sun TV Network and Viacom18 Media for allegedly airing between 12 and 25 minutes of advertisements per hour during peak viewing periods.

Now, after more than a decade of legal wrangling, the battle has entered a decisive new phase. As broadcasters gear up for a Supreme Court showdown, the question is no longer whether viewers prefer fewer commercials, it is whether television can afford them.