Clean Feed Law In Nepal

SEPTEMBER 18, 2020

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Clean Feed Law In Nepal

2022-11-24

Clean Feed Policy is an instrument that allows foreign channels to broadcast in the country without having foreign advertisements in their programs. The main motive behind the Clean Feed Policy in Nepal is to promote the domestic advertising industry and reduce the outflow of money to foreign channels. It additionally increases employment opportunities and encourages multinational companies to advertise on Nepali channels. Nepal had no clean feed policy in the past, where there would be double benefit for the foreign channels; payment of cable or DTH as well as promoting their goods and services through advertisement. There are 2 types of broadcasting in the world: “Pay channel”, which can be viewed only by paying a fee and “Free to air channel”, which can be watched without paying a fee. Clean feed is the system where free channels broadcast with ads and broadcast without ads by charging the customer. Advertise-free broadcasting is regulated by the policies and laws of the respective countries.

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    Background of Clean Feed in Nepal:

    After the enforcement of The National Broadcasting Act and Regulations, international television channels entered in Nepal from 2052 B.S. These international channels were broadcasted in Nepal along with advertisements specially by India. Such channels were continuously being broadcast in Nepal with advertisements of multinational companies, while television channels of some other foreign countries come without advertisements and are also broadcast in Nepal with advertisements in India. Clean Feed Policy 2073 was implemented by the Council of Ministers, Office of the Prime Minister, and the Government of Nepal on 7th Shrawan 2073.

    Objective of Clean Feed Policy, 2073:

    The objectives of the Clean Feed Policy 2073 are as following:

    • To make the foreign television channels advertisement free,
    • To broadcast the advertisements of products of the multinational corporations through the Nepalese television channels that helps to be Nepalese advertising agencies self- reliant,
    • To enhance the quality of the quality of the programs that are broadcasted on Nepalese channels,
    • To prevent the trespassing Nepalese language and culture,
    • Employment generation and revenue collection through the increment in the Nepalese advertisement industry,
    • Develop the television business as an industry in Nepal by promoting the production, broadcasting in Nepal.

    The Advertising Regulation Bill was welcomed as well as protested. It has provided for the adoption of the clean feed policy to fulfill the objectives mentioned above. This policy helps to grow the revenue of local media and the government will benefit from more tax revenue. It expands the domestic advertisement market that stops the outward flow of money. A clean feed policy can set up the base for fair competition between products that are manufactured in Nepal against those imported. It will contribute to reducing the country’s trade deficit.

    Legal provisions:

    Section 6 of the Advertisement (Regulation) Act, 2076 makes the legal provision that the foreign television channels that are being broadcasted in Nepal have to broadcast without having foreign advertisements. Section 6(2) states that at the time of the commencement of this Act, the institutions having made agreements by downlink with foreign channels, have to broadcast without the advertisements within 1 year of the commencement of this Act. The offenses regarding clean feed is punished with a fine up to 5 lakhs rupees as per section 25(3) of the Act.

    Effect of Clean Feed Policy, 2073:

    The Clean Feed Policy 2073, implemented in Nepal in 2016, had several significant effects on the broadcasting and advertising industries. The effects are:

    1. Advertisement: The policy attempted to make international television networks ad-free in Nepal, resulting in an increase in commercials from global corporations on Nepalese channels. This was meant to make Nepalese advertising agencies and channels self-sufficient.
    2. Quality of Programs: The policy aimed to increase the quality of programs broadcast in Nepal by boosting the presence of advertisements from global corporations on Nepalese channels.
    3. Cultural Impact: One of the goals was to prevent encroachment on Nepali language and culture by ensuring that broadcast material was more aligned with local values.
    4. Economic Benefits: The program was supposed to boost employment and tax collection by encouraging the expansion of Nepal's advertising industry.
    5. Industry Development: It aimed to grow the television industry in Nepal by fostering activities such as production and broadcasting within the country.
    6. Pricing: The policy may result in rises in the costs of signals from foreign pay channels, as well as the overall cost of pay channels for Nepalese viewers.
    7. Broadcasting Compliance: Noncompliance could result in the suspension of broadcasting for several foreign pay channels.
    8. Time Zone Issues: Clean feed broadcasting of foreign pay channels may not correspond with Nepal's local time, thereby affecting viewing.

    Overall, the Nepalese government's Clean Feed Policy 2073 was a key step in bolstering the domestic media industry, protecting cultural integrity, and stimulating economic growth through advertising. However, it also introduced new obstacles, such as potential consumer price rises and regulatory issues for international broadcasters.



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