The tide is turning for the television broadcasting industry. Data by Statista shows that digital cable TV is projected to generate $53.8 billion in revenue by 2028, a decline from $66.7 billion in 2022. The introduction of new technologies, changing consumer preferences, and increasingly stringent regulatory requirements has ushered in these changes and multiple compliance regulations.
The television broadcasting industry is navigating turbulent waters in an era characterized by rapidly evolving regulatory landscapes and heightened scrutiny. From data privacy concerns to evolving content standards, broadcasters face various compliance challenges that demand swift and strategic action.
As the digital ecosystem expands and traditional broadcasting models evolve, payment compliance has become more important. Failure to adapt to these shifting regulatory requirements increases the risk of financial penalties, undermines consumer trust, and tarnishes brand reputation.
To meet these regulations, TV broadcasters are partnering with reputable payment processors like iCG Pay, formerly iCheckGateway.com, to access compliant systems.
This article will explore key compliance areas broadcasters need to address and practical strategies for mitigating risks in an increasingly regulated environment.
The TV broadcasting industry operates within a complex web of regulations, and navigating this ever-changing landscape can be daunting. As a broadcaster, you need to have a clear understanding of the compliance requirements. Here's a breakdown of some key areas:
With the rise of targeted advertising, broadcasters collect significant viewer data. Additionally, broadcasters process electronic payments for advertising and streaming services; therefore, they must protect the customers’ payment information.
Regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) mandate how this data is collected, stored, and used. Broadcasters must ensure viewer consent for data collection, provide clear privacy policies, and offer viewers options to control their data.
There is a set of regulations governing the type of content that can be aired on television. In the U.S., The Federal Communications Commission (FCC) enforces laws prohibiting broadcasters from airing harmful or obscene content. Similarly, advertising regulations dictate the types of commercials that can be aired.
Broadcasters must ensure they have the rights to broadcast any content they air. This includes music, movies, television shows, and even certain images. Copyright laws are complex and can vary depending on the source material. Broadcasters must have robust procedures to verify rights ownership and obtain necessary licenses before airing copyrighted content.
Adhering to compliance regulations is the foundation for a healthy and sustainable business. TV broadcasters that fail to do this can suffer severe consequences, impacting their finances and operations.
The TV broadcasting industry is quite profitable. Its advertising revenue is expected to reach $36.68 billion in 2024, which benefits companies in the sector. However, if you are non-compliant, you might lose on this revenue.
This is because regulatory bodies have the power to impose hefty fines on broadcasters who violate compliance rules. These fines can be substantial, significantly impacting a broadcaster's bottom line.
In extreme cases of non-compliance, regulatory bodies may suspend or even revoke a broadcaster's license. This can effectively shut down a broadcaster's operations and result in a significant loss of revenue.
News of non-compliance can quickly tarnish a broadcaster's reputation. Consumers today are increasingly privacy-conscious and expect companies to handle their data responsibly. For instance, non-compliance with data privacy regulations can disrupt payment processes. A data breach or violation of privacy regulations can reduce consumer trust, negatively impacting advertising revenue and viewership.
This is why broadcasters need to work with payment processors like iCG Pay who offer compliant payment gateways.
Beyond the sanctions imposed by regulatory bodies, non-compliance can also lead to legal issues. For example, a broadcaster found to have violated copyright laws could face lawsuits from rights holders. These lawsuits can be costly and time-consuming, further impacting a broadcaster's finances.
As a TV broadcaster, you don't have to weather the compliance tsunami alone. Here are some key strategies to help you fortify your defenses:
Many payment processors are well-versed in the intricacies of data privacy regulations. Partnering with a processor like iCG Pay can alleviate some of the burden for broadcasters. Our solutions help with fraud prevention and reduce your PCI scope.
You can leverage our existing security measures for all your payments. As a Nacha Preferred Partner, our ACH processing solutions are compliant. These capabilities minimize the risk of data breaches, making it easy to secure your online payments.
Technology can be an important tool in maintaining compliance. Implement electronic payment systems that make it easy to accept credit card payments, direct debits, and SMS payments.
For instance, compliance management software can centralize all compliance-related documentation, automate tasks like data breach notifications, and track regulatory updates. Additionally, if you use credit card machines, the payment services are encrypted to protect details such as sensitive credit card information.
Compliance shouldn't be seen as an isolated responsibility. Broadcasters can foster a culture of compliance by providing ongoing training to employees at all levels. This training should educate staff on relevant regulations, best practices, protection against cyber threats, and the importance of data privacy.
Payment compliance is an ongoing process. Although the transaction value of digital payments is expected to reach $11.53 trillion in 2024, it comes with an increased fraud risk. Therefore, you need to regularly monitor their compliance practices to fortify your payment security.
This involves regularly reviewing policies and procedures, evaluating the effectiveness of implemented solutions, and identifying areas for improvement. This way, you can address potential issues before they escalate.
Payment processors are vital in the TV broadcasting ecosystem, handling financial transactions for subscriptions and advertising services. Here's how secure payment processors can specifically contribute to a broadcaster's compliance efforts:
A key element of compliance is ensuring the security of viewer data collected during transactions. Payment processors like iCG Pay have robust security practices, including data encryption, regular security audits, and adherence to industry security standards like Payment Card Industry Data Security Standard (PCI DSS). Therefore, broadcasters can be transparent about their payment systems.
Additionally, working with a payment gateway provider provides opportunities to accept online payments. You can access these advanced technologies and payment methods that protect your financial data:
Compliance regulations often require broadcasters to report on data collection practices. Payment processing companies can streamline this process by providing broadcasters with detailed reports on viewer transactions and data collected during the payment process.
iCG Pay gives a comprehensive view of all invoicing activities in one platform, seamlessly integrating with existing back-office solutions. These reports can be invaluable for broadcasters when demonstrating compliance with regulatory bodies.
Many consumers are using ACH payments for bill payments. According to Nacha, there were 8.1 billion ACH payments in the fourth quarter of 2023, with a total value of $20.5 trillion. Therefore, if you accept ACH subscription payments, you can use a payment processor that follows Nacha security standards. This way, your transactions are handled securely and according to industry best practices.
Compliance doesn’t have to be challenging. Partnering with a trusted payment processor like iCG Pay can be a game-changer. We offer robust security measures, user-friendly tools, and ongoing support to ensure your payments adhere to the latest regulations.
We are committed to being your partner in compliance. Contact the iCG Pay team today and get started on your journey to be compliant!