24 HOURS CHANNEL BLACKOUT

Insights of the protest and clean feed

In the partial fulfillment of the academic requirements of the

third semester at Masters of Arts in Mass Communication and Journalism (MA MCJ)
at Purbanchal University, Biratnagar, Nepal.

Submitted By:

ANU MAHARJAN

Regd No. 025 – 1 – 3 –00001 – 2018; Symbol No. 130143

School of Humanities and Social Sciences

Department of Mass Communication and Journalism
Kantipur City College
Putalisadak, Kathmandu
Nepal.

July 2019
 PREFACE

This study is conducted to understand the reasons behind such big action taken by the
cable operators in Nepal again foreign channels. This project focus on impact of the channel
blackout to the public who watch television. This study illustrate and analyze the problems
faced by government and public due to the unethical advertisement practice.

Advertising culture is booming in every part of the world. However, the legislation,
ethics or the code of conducts are not practiced so vigorously along with broadcasting of the
thriving advertisements. Television could be one of the considerable medium for
broadcasting advertisements. There are numerous advertisements displayed in local channels,
national channels and international channels like HBO, Ajtak, sony, star sports and so on.

This project puts an effort to study the reasons behind foreign television channel
being taken off air 24 hours to protest for new legislation. Any suggestions and remarks are
welcomed to improve this project.

ANU MAHARJAN

Kathmandu, Nepal.

Date: 05 07 2019

i
 ACKNOWLEDGEMENT

I would like to express my gratitude to my teachers Rajiv Timalsina and Abhas

Rajopadhyaya who mentored us throughout this report. I am thankful to them for the
continuous guidance and sharing the important materials for the completion of this project.

I would also like to express my appreciation to my parents for the support and co-
operation for finishing this report. Lastly, I would like to thank my friends who helped me
complete this project.

ANU MAHARJAN

Kathmandu, Nepal.

Date: 05 07 2019
 TABLE OF CONTENTS

PREFACE.......................................................................................................................i

ACKNOWLEDGEMENT.............................................................................................ii

TABLE OF CONTENTS...............................................................................................v

TABLE OF FIGURES..................................................................................................vi

LIST OF ACRONYMS................................................................................................vi

Chapter 1: Introduction..................................................................................................1

Background................................................................................................................1

Introduction................................................................................................................1

Rationale....................................................................................................................2

Statement of the problem...........................................................................................2

Chapter 2: Presentation and Analysis............................................................................3

Presentation................................................................................................................3

Causes of problem......................................................................................................3

Consequences of the problem....................................................................................3

Case Analysis.............................................................................................................4

Efforts to overcome problem.....................................................................................6

Chapter 3: Conclusion and Recommendation................................................................8

Conclusion..................................................................................................................8

Recommendations......................................................................................................8

Bibliography...................................................................................................................9

Appendix......................................................................................................................10
 Table of Figures

TABLE OF FIGURES
 LIST OF ACRONYMS

S.N. Acronym Full Form Descriptions

It is an electronic device which has a screen

1. TV Television and used as source of information and
entertainment
Measurement of time equivalent to 60
2. HR Hour
minutes
3. RTI Right to information It’s one of the basic human right.
Digital Television
4. DTA It is a convertor box which tunes television.
Adapter
Internet Protocol It is set of rules for television broadcast over
5. IPTV
Television internet.
Digital Imaging Person who works in motion picture
6. DIT
Technician industry.
Asian News
7. ANI It’s a news channel which is online.
International
Ministry of
It is a government body in Nepal regarding
8. (MoIC) Information and
information and communication
Communications
It is the reception of satellite programs with a
9. DTH Direct to home
personal dish in an individual home.
 Chapter 1: Introduction
This chapter introduce the case and gives the background of the issues. It presents the
rationale and the statement of problem.

1.1 Background
TV is widely accepted medium for mass communication. It has capacity to receive
broadcasting signals and turn them into pictures, videos and sound. These TV consists of
different channels with special interest and with set of scheduled programs. For example star
plus is a channel broadcasted from India and it’s program are normally the tele series in
Hindi. Similarly, CNN and BBC are international channel which majorly deals with news
section.

These channels are guided by some rules or laws of the government which may include the
taxes, loyalty, copyrights, RTIs and others. These channels normally make huge percentage
of revenue from the advertisement. Usually, government receives taxes from the registered
channels but here the question is are all the foreign channels paying taxes for the
advertisements popping up on their channel. Legislation is a part of the government which
formulates the law on different fields like on licensing, advertisement, taxes and so on.

In this case study report, the subject matter is introduced along with the necessary
background in the first chapter. Also, it elucidate the scenario of the case. Then in chapter
two, the causes of this problem are discussed along with their possible consequences and
effects. Finally after all the research based studies case is analyzed and presented. After that
efforts that has been made to make positive change is marked. Finally, conclusion is the last
chapter where cased is evaluated and judged. Hence suggestions and recommendation are
marked.

1.2 Introduction
Public come on the roads to protest when they are not happy with some decisions especially
when it is from the government’s end. Similarly, doctors are protesting in government
hospitals by not attending the patients. We often see teachers protesting by their pen down in
order to impose their demand on school administration. So, such protest was shown by cable
TV operators by shutting down the broadcast of foreign channels for a day.
 Appendix

About 85 per cent of the channels airing in Nepal are foreign channels. The Protesting
committee argues that the new legislature would set a limit to the choice of television
channels available to the viewers, and thus affect the market competition. Furthermore, the
regulation would result in joblessness, considering that an estimated 15,000 people in the
country are employed in this sector.

Furthermore, the reason for the protest is all about grabbing attention towards the requirement
of new regulations which would demand the foreign channels, including the Indian channels,
to set up separate companies dedicated to serving Nepal.

1.3 Rationale
This study is conducted to understand the case scenario of the protest held by the cable
operators. Also, the motive of this research is to find out the reasons behind the protest and
the impact it has created on public. This research tries to know different perspectives of
related groups. For instance the government might came up with this idea with certain point
of view, cable operators might have different view point and worries and public might have
their own observation and experiences. All these issues and its possible solution is discussed
in this report with the proper data and representation. Basically, the project is firstly carried
out to identify the problem and then analyze its causes of the problem and finally present the
learnings with the proper suggestion.

1.4 Statement of the problem

Cable TV operators in Nepal blocked all the broadcast of foreign channels for a day as a
mark of protest against Advertisement Bill proposed by the government. Due to which public
got affected. The protest took place after the government placed advertisement bills that are
broadcasted in foreign channels. The cost of all cable services will skyrocket and viewers will
have to bare the increment in the cable services. Overall, issue is between the government
and cable operators however the great impact was seen on the public who have actually paid
to the cable operators for their services.

Chapter 2: Presentation and Analysis

 Appendix

This chapter deals with the root causes of the protest such that the actual reasons why
the cable operators took that step and why government is coming up with such advertisement
bills. It tells you about the consequences of the problem that public had to tolerate and other
possibilities if such rules are implemented. It presents the situation and overall case analysis.

2.1 Presentation
First of all to study the impact of the protest on the public a small survey was
conducted among the public who watch TV in their life. The survey was conducted among
100 random people living in Kathmandu district in which some were students, some were
teachers, and some were housewives, corporate officer, sports fan, and movie lover and so
on.

The first question of the survey was if the participant knew that Cable TV operators in
Nepal had shut down the broadcast of foreign channels for the whole day on 24 th of June
2019. 80 people knew about it whereas rest had no idea about it.

do you know about the protest?

I know I don’t know

Figure: 2.1.1 viewers who knew about the channel blackout

The second, third, fourth and fifth question was of the survey was the level of impact of the
protest on them. 25 people ticked on not at all, 50 of them ticked on highly effected and 5 of
them marked on little bit and 20 of them marked on moderate.
 Appendix

Chart Title

awareness

Impact

0 20 40 60 80 100 120

not at all little bit moderate highly

Figure: 2.1.1 viewers who knew about the channel blackout

2.2 Causes of problem

Cable TV operators have violated the consumers’ right to information by blocking foreign
TV channels for 24 hours from 3:00 pm Monday to 3:00 pm Tuesday. Some of the causes of
problem are listed below.

 There is lack of foreign policy like taxes regarding advertisement.

 The history of foreign channels in Nepal is not very long.
 Constitution of Nepal does not mention these regulations in detail.
 The concept or the realization about how government could collect taxes from the
advertisement is itself very new idea for the government of Nepal.

2.3 Consequences of the problem

If the legislation is implemented regarding the taxes that cable operators need to
submit to the government of all the foreign advertisements being telecast on foreign channels
which are produced in foreign countries about the foreign product and services, the cost of
DTA, IPTV and DIT services that various cable operating companies have been charging
would go immensely high. Ultimately the viewers would end up paying that high amount.
Ultimately the public is the one who will be suffering most at the end of the day.
 Appendix

Nepal’s total population is around 28 million, which is a huge market in itself for the
ad business. Many foreign brand products are sold in the country, and foreign TV channels
are the main source of their ads. Nepal’s annual ad market hovers at around Rs 12 billion, and
it could further go up by at least Rs 2 billion if the clean feed policy comes into effect.
Therefore, it is unlikely that producers of foreign brand products will skip this market by not
producing their ad contents in the Nepali language as required by the Bill, which states that
foreign TV channels will have to make their programmes either advertisement-free or
transmit ads produced in Nepal using local content, characters and languages. This provision
will not only help the local ad business to flourish, but will also help create jobs for the
country’s artistes, who are struggling with the hand-to-mouth problem. This policy will also
add one more feather in the cap of the country’s culture, language and natural landscape.

An article posted on that very day of protest, published by ANI quotes Shoyeb Khan’s
feelings as– "I am a very big cricket fan. I could not watch the game between Pakistan and
Afghanistan because of the channel blackouts. The match was scheduled to start at 3:15 pm
(local time) and because of the channel blackout, I could not watch it. No channels were on-
air and I tried searching time and again".

There are many Shoyeb Khan’s out there in public who could not raise their voice. This
protest is also the violation of the RTI. Public have paid to the channel so they have all the
rights to watch any TV channel that they have paid for. Therefore this problem could leave a
very negative impact on the viewers. If the charges are increased for the foreign cables as
predicted by the operators then it would be win situation for government but cable operators
might lose business and viewers might have to bare expensive charges. Having said that,
government should certainly develop the laws to sort out the advertisement issue without
hazardous consequences.

Although there could be growth in Nepal’s economy if government can achieve what
they are standing for, 24 hours blackout has effected many people in different ways,
especially to the public with mundane life and loves watch TV. Also to the Cricket game
lover as that was a match between Pakistan and Afghanistan but unfortunately there was not
even a possibility to watch the game as cable operators had banned the broadcasting of all
international channel.
 Appendix

2.4 Case Analysis

Cable TV operators in Nepal shut down the broadcast of foreign channels for a day on 24 th of
June 2019 for whole day, as a mark of protest against Advertisement (Regulation) Bill
proposed by the government. The 24-hour-long shutdown began at 3 pm on Monday. The
protesting parties have said that the move was a dummy step taken to show what the protest
could lead to if the legislation is implemented.

If (the legislation is) implemented, (the) cost of Digital Television Adapter (DTA), Internet
Protocol Television (IPTV) and Digital Imaging Technician (DIT) services rendered by
various companies would skyrocket. Ultimately the viewers would end up paying that high
amount," the release added. The Advertisement (Regulation) Bill has a mandatory provision
that bars foreign channels from broadcasting advertisements. The former governments of
Nepal had made attempts to bring this legislation but later stepped back following strong
protests from the concerning parties.

It is also a violation of the constitution that has guaranteed the transmission of informative
messages through broadcast signals. The cable operators shut down the foreign TV channels
in protest against the Advertisement Bill recently tabled in the Federal Parliament. The cable
operators have claimed that the Bill, which aims to implement a “clean feed policy”, would
bring to a halt foreign TV channels as they are aired along with foreign ads. A clean feed
policy is an instrument that allows foreign channels to broadcast in the country without
having foreign ads in their programs. Around 200 foreign TV channels, mostly Indian, are
available in Nepal, and all of them run foreign ads. Nepal Advertisement Association has,
however, welcomed the Bill, which, it said, would help enhance the production capacity of
the local ad agencies on the ad content of foreign goods.

2.5 Efforts to overcome problem

The clean feed policy is long overdue. The government had drafted a policy to this effect
some three years ago. But it could not be implemented due to lack of adequate homework and
absence of a law governing foreign ads and channels. This is not a new policy. The USA,
European countries, South East Asian nations, Bangladesh and Bhutan, to name a few, have
also introduced this policy, under which foreign channels that transmit foreign ads cannot
charge any fee from the customers. Bhutan government has retained the right to distribute the
 Appendix

foreign channels whereas Bangladesh has a legal provision that regulates the price on foreign
pay-channels. The move comes nearly three years after the government first put forth the idea
of Clean Feed in television broadcasting. The policy, introduced in 2016, will be
implemented after the Advertisement (Regulation) Bill, currently under consideration in
Parliament, is endorsed by lawmakers.

As per the policy, Nepali viewers pay Direct-to-Home satellite television service providers a
monthly charge and are thus also exposed to foreign commercials. “Apart from a few
exceptions, almost all of the foreign channels carry commercials made by multinationals and
conglomerates for which Nepali viewers are paying monthly charges, while the domestic
advertising industry is shrinking. Hence, the need for implementation of clean feed," states
the policy. The government and domestic advertisers say that as the pay channels are loaded
with international commercials, the multinational companies are not interested in
broadcasting their commercials in domestic channels. Also, the domestic agencies have fewer
slots to air Nepali commercials.
 Appendix

Chapter 3: Conclusion and Recommendation

This chapter summarize the study in a proper conclusion of this case study and gives
few recommendation to improve. It completes the study and tries to explain the problems and
its solution.

3.1 Conclusion
Clearly, there has been problems in the media law set by the government as it does not give
the clear concept about how much to take or whether or not to take any tax from the
advertisements that has been produced in foreign country about the foreign product and
services that are telecasted on the foreign channel. Similarly cable operators have their own
point of view on this action of government. They are insecure about their business. If these
regulations are implemented, they are afraid that their business will go down as the channel
might charge more money to the cable operators and ultimately the subscription cost of cable
for the end user might increase and certainly this news will not make public happy.

According to the government, with no multinational beaming commercials through Nepali

channels, the television industry has faced slowed revenue growth, and thus not allowed it to
produce quality content. This, in turn, leads to viewers opting to watch foreign channels
which would draw the curtains on Nepali language, culture and traditions. The policy entails
imposing additional charges on viewers who will have to pay more than the current price to
watch the foreign channels they are inclined to. Also, the international broadcasters who are
unwilling or unable to produce clean feed content streamlined for Nepal will lose viewers as
the government would not issue them the broadcasting rights.

3.2 Recommendations
There may be pros and cons regarding clean feed policy. The main motive behind the
government trying to introduce the policy is to promote the indigenous advertising industry.
Today, TV channels in Nepal are flooded by foreign channels, especially Indian ones. These
channels are preferred to Nepali ones by most of the people. Indian channels have made a
soft corner in the hearts of most of the people. My few recommendation on this context
would be as follows:

[1]
a. Clean feed policy should be distinguished from advertising and free-to-air
polices. The former dictates that TV broadcasts should not be accompanied by
 Appendix

advertisements (commercials), whereas under advertising policy telecasts are

made interspersed with commercials. Subscription charges under clean feed
policy, therefore, outweigh those under advertising policy. On the other hand,
free air policy requires payment of no subscription charges. Some non-Indian
foreign channels come with no or very few advertisements. Nepali channels
also come with advertisements. Some of the advertisements are nothing more
than just dubbed Indian advertisements.
b. If foreign channels want to broadcast advertisements, they should come to
Nepal and make advertisements in the Nepali language in a local setting. They
should also use the local media and resources. This provision would generate
revenue and create employment. Artists, publication houses, recording studios,
shooting studios, the people and even the government can reap benefit from
this provision.
c. Foreign channels have an adverse impact on the mind of the people, especially
the kids. Such channels are knowingly or unknowingly promoting foreign
culture and practices in Nepal. Therefore, instead of foreign channel Nepali
citizen should promote and watch local channels.
d. Further, the introduction of clean feed policy will help the government to
increase revenue. Now, the government cannot collect revenue from
advertisements broadcast on foreign channels, whereas it can from Nepali TV
advertisements. Foreign advertisers are not willing to invest in Nepal now. So
the introduction of clean feed policy may impel them to invest in Nepal, which
will give a boost to the national economy. Therefore, TV operators and public
should support and co-operate with each other.
 Appendix

Bibliography

EDITORIAL: Clean feed policy. (2019). Retrieved from

https://thehimalayantimes.com/opinion/editorial-clean-feed-policy/

Everything you need to know about the Clean Feed Policy. (2019). Retrieved from
http://kathmandupost.ekantipur.com/news/2019-06-25/everything-you-need-to-know-about-the-clean-
feed-policy.html

Clean feed controversy: Activists file complaint against cable operators – OnlineKhabar. (2019).
Retrieved from https://english.onlinekhabar.com/clean-feed-controversy-activists-file-complaint-
against-cable-operators.html

The Rising Nepal: Pros And Cons Of Clean Feed Policy. (2019). Retrieved from
http://therisingnepal.org.np/news/19131

Nepal: Foreign TV channels taken off-air for a day to protest new legislation. (2019). Retrieved from
https://www.business-standard.com/article/news-ani/nepal-foreign-tv-channels-taken-off-air-for-a-day-
to-protest-new-legislation-119062401430_1.html

‘Nepal government committed to enforcing clean feed policy’. (2019). Retrieved from
https://www.nepal24hours.com/nepal-government-committed-to-enforcing-clean-feed-policy/
 Appendix

Appendix
[1] free-to-air are television and radio service broadcast in clear(encrypted) form, allowing
any person with the appropriate receiving signal and view or listen to the content without
requiring a subscription, other ongoing cost or one-off fee. (e.g. pay per view)