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FM Radio Broadcasting Industry ‐
FM Radio Broadcasting Industry India
December 2009
Executive Summary
               Radio stations generated a revenue of INR 8 bn in 2008 ; expected to reach INR 18 bn by 2012
               Share of radio advertising was 3.3 % in 2008; expected to reach 4% in 2012
  Market       Most stations use same level of genre of content with little or no differentiation
               There are over 240 radio stations beaming across over 90 cities in India
                There are over 240 radio stations beaming across over 90 cities in India
              Drivers:                                                       Challenges:
                 –   Increasing radio listener base                               –   Royalty
                 –   Opportunities in Phase III expansion                         –   Lack of content differentiation
                 –   Increasing advertising by small local brands
                     Increasing advertising by small local brands                 –   Government regulations
                                                                                      Government regulations
 Drivers & 
 Di      &
                 –   Favourable demographics                                      –   Bargaining tactics used by advertisers
Challenges       –   Political advertising
                 –   Introduction of new performance measurement tool 

               Emergence of Visual Radio
                Emergence of Visual Radio
               Satellite Radio
               Community Radio
  Trends       Internet Radio
               Sales Alliances
                Sales Alliances
               Players going Niche
               All India Radio (AIR), covers 91% of India's area and reaches 99% of India’s population
               Radio Mirchi leads the overall market with share in revenue terms in excess of 40%
Competition
               Big FM leads in terms of highest number of stations
               Majority of players are backed by media houses with interests in media activities like TV or Print

                                     FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                                2
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   3
Privatization of Radio in India was a lengthy process

                                     Time Line Radio Privatization

         • Private broadcasters sold slots on AIR’s FM channels for certain key cities, the service was later 
  1993
           discontinued in 1998
           di     ti   d i 1998

         • Privatization of FM ‐ Phase I Policy 
  1999
         • Bids were invited for allotting licenses for a ten‐year period

  2000   • Phase I FM broadcast licensing, auction was conducted

  2001   • Licenses issued to private radio broadcasters

         • In February 2004 TRAI was asked to give recommendations for Phase II licensing of FM radio
  2004   • In August 2004, TRAI presented its recommendations on the regulatory framework for private FM 
           stations

  2005   • Announcement of Phase II Policy of privatization of FM


  2006   • Licenses for 91 cities were auctioned




                                  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                     4
Phase I policy was not successful due to a high license fee 
structure , Phase II helped in reviving radio industry
                                            1999 - Phase I of Radio Licensing
Total Frequencies on Offer   108 frequencies across 40 cities
       Allotments            37 licenses were taken up and 22 radio stations took off across 12 cities in the Phase-I
      Key Features           • In Phase I Policy of FM radio privatization, private operators were invited to bid for a 10-year
                               license to set-up and operate FM radio stations
                             • No limits or penalties were levied on speculative bidding
                             • No foreign equity was allowed
                             • Bids often reaching unrealistic levels, many winning bidders paid inflated fees
                             • 50% of the license fee had to be paid upfront by the players
                             • Determination of license fee was by auction for each market
Revenues Earned by Govt.     From Phase-I Government earned INR 1.55 bn

                                            2005 - Phase II of Radio Licensing
Total Frequencies on Offer   338 frequencies in 91 cities
       Allotments            Private FM Radio companies bidding for these licenses won 280 out of these 338 frequencies
      Key Features           • All the 91 cities were classified in A-plus, A, B, C and D categories
                             • Total 85 private players, apart from media companies and players from other sectors, were
                               shortlisted for bidding
                                h tli t d f biddi
                             • Phase II granted licenses on one time entry fee (OTEF) basis along with annual revenue
                               sharing at 4% of annual gross revenue or 10% of the reserved OTEF for the concerned city
                             • Government permitted automatic migration of Phase-I players if they clear all the previous dues
                               and pay OTEF equal to the average of all successful bids under Phase-II in that city
Revenues Earned by Govt.     Government earned over INR 9 bn from Phase II round of licensing



                                           FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                             5
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   6
Radio Market has a good growth potential

Market Overview                                                                Advertising Revenues and Share
• There are over 240 radio stations beaming across ~90                                             Advertising Revenues
  cities in India                                                             INR bn               % Share of Radio in Ad Pie                       %
                                                                                                                                               4.0 18.0
                                                                                                                                        3.8
                                                                                                                                        38
• R di
  Radio programming during primetime consists of at 
                   i d i        i ti          it f t                          20                                          3.6    3.5                  4
                                                                                                           3.2    3.3
  least 40 minutes of music, 9 minutes of Ads and 5                                                 3.1
                                                                                                                                        15.0
  minutes of jockey talk                                                      15            2.5
                                                                                                                                 12.0
                                                                                                                                                        3
                                                                                   2.1
• Radio advertising penetration in India is low as                            10
                                                                                                                          10.0
                                                                                                                                                        2
                                                                                                                  8.0
  compared to other nations
  compared to other nations                                                                                6.2
                                                                                                           62
                                                                                                    5.0
      Demand for radio advertising is expected to increase as                 5            3.2                                                         1
                                                                                   2.4
       the players across industries feel the impact of recession
                                                                               0                                                                        0
• Radio’s national footprint is expected to rise with 
                                                                                   2004    2005   2006     2007   2008 2009e 2010e 2011e 2012e
  phase III round of licensing
Radio Advertising Share in Total Ad Spend                                      Advertisers Profile on Radio
     %                                                                                                                  Media
                                       9.4                                                    Others
10                                                    8.4                                                          22%
                                                                                                          26%

 5                       4.4
           3.3                                                                                       8%           14%
                                                                                          Telecom                     FMCG
                                                                                                         8%
                                                                                                               12%
 0                                                                                                         10%
                                                                                                  Retail
         India         China       Singapore        World                                            Finance     Durables




                                                    FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                                      7
Operating cost for a radio station differ with category of the 
city
                         • Set‐up costs include transmission and studio equipment, networking infrastructure, office premises & equipment 
                         • Set‐up cost varies from small to large stations
 Set‐up Cost                  It ranges between INR 15 – 25 mn for smaller stations 
                              For metro or a large city stations it is INR 40 – 50 mn 


                         • Music Royalty :  It ranges in between INR 5‐ 7 mn per year it is constant since current system does not differentiate 
                           between population of city and station location
                         • Payroll Costs: Radio jockeys and guests comprise a third of total payroll costs. 
                         • Marketing Costs are concentrated on cities where listener base is highest, large radio companies do not have high 
Operating Cost             marketing budgets for smaller stations
                         • License fees are to be paid, 4% of gross revenues
                         • Other operating costs are generally fixed and do not vary month by month these include lease rentals, utility costs, 
                           security, administration and radio tower rentals
                                  y,

                                  Metros                        A & B Category Cities                C & D Category Cities

                               22%                                   21%
                                                                             10%                           14% 7%                           Marketing
                                           33%                                                           8%                                 Payroll
                                                                                                                                            P    ll
                                                                                                                        28%
                            7%                                    10%              34%                                                      Royalty
                             7%                                                                                                             Rentals
                                     31%                               25%                                   43%
                                                                                                                                            Others

Note: Categorization of stations in Phase II is according to Population
A+ :Top 4 Metros;  A: Population above 2 mn; B:Population between 1 – 2 mn;  C: Population between 0.3  ‐ 1 mn; D: Population between 0.1  ‐ 0.3 mn


                                                    FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                                        8
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   9
Drivers & Challenges ‐ Summary



  Drivers                                                              Challenges
  Increasing radio listener base                                       Royalty

  Opportunities in Phase III expansion                                 Lack of content differentiation

  Increasing advertising by small local 
                                                                       Government regulations
  brands

  Favourable demographics                                              Bargaining tactics used by advertisers

  Political advertising

  Introduction of new performance 
  measurement tool




                                       FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                               10
Increasing radio listener base and expansion opportunities 
in Phase III is driving growth in radio industry in India
Increasing Radio Listener base                                                                          Impact
• Easy availability of FM radio sets at affordable price points ranging between INR 40‐INR 150 has  
  fueled its mass penetration
• India has an estimated 180 million radio sets, reaching over 99% of its one billion inhabitants
    This indicates vast commercial potential in India for radio market
• Availability of radio enabled mobile handsets has helped in popularizing the radio
    It is estimated that 25% of mobile subscribers in India have radio enabled mobile phones
    This implies that more than over 60 million people can access the radio stations while traveling
• Consumption of radio in India is still largely at home, 'the radio on the move' trend is catching 
  on in urban and semi‐urban areas
    People in urban areas are listening to radio while traveling in cars using the car stereo

Opportunities in Phase III expansion                                                                    Impact
• The third phase of the FM Radio expansion proposes adding 790 new channels in 290 towns 
  which have a population of over 100,000
• Third phase is likely to allow broadcasters to own multiple frequencies which will in turn 
  increase their revenue and profitability by offering more programming options to listeners
• Tradability of licenses is likely to be allowed after 3 years instead of the present 5 years
• Government is considering opening news, current affairs and sports to the private players
                          g p     g     ,                      p            p       p y



                                                  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                     11
Increasing ad spend by small local brands and favorable 
demographics is expected to drive FM radio industry
Increasing advertising by small local brands                                                          Impact
• Radio by its very nature, is a localized medium, due to it’s ability to transmit messages over a 
  small geographical area
• L l fi
  Local firms with region specific requirements prefer advertising through radio
                ith   i         ifi      i     t     f   d ti i th           h di
• Advertising on radio costs just 15% that of television
    Low cost of advertising has encouraged many local firms to try advertising through Radio
• Approximately 40% of ad revenues in smaller towns come from local brands
Favourable demographics                                                                               Impact
• India has one of the youngest populations  in the world
    Two‐third of India is under 35 years of age and the median age is about 24 years 
    Urban India accounts for nearly 30% of this young population
• FM radio players are targeting this young population who look at radio as mean of 
  entertainment at home and even when they are on‐the‐move
• Radio stations are hiring young and energetic radio jockeys who can easily connect with the 
  target population
• Young population is an attractive segment for most advertisers
                                             Median Age
                             years
                           50                                  35           41
                                      24          30

                            0
                                     India      China          US          Japan



                                                 FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                    12
Political advertising and new performance measurement 
tool are positive developments for this sector
Political advertising                                                                                            Impact
• Government has allowed political advertising on private FM stations
    Political advertising was earlier permitted for other mass mediums except private radio stations
    Radio broadcasters had earlier requested the Government to allow political advertising
• Radio being the best local media available to connect with people even in far‐flung areas has 
  made it a preferred medium for political parties
• Many radio broadcasters have benefited from the ad spends of various regional and national 
  parties during the elections

Introduction of new performance measurement tool                                                                 Impact
• Introduction of a new performance measurement tool ‐Radio Audience Measurement (RAM) ‐ is 
                        p                                                        (   )
  expected to aid the growth in radio advertising
    Although another radio listener measurement tool Indian Listenership Track (ILT) ‐ already exists in the 
     market, advent of RAM provides another option to both advertisers and radio stations
    Both RAM and ILT are expected to aid the growth in radio advertising by making the measurement of return 
                            p                  g                         g y        g
     on investment for advertisers more scientific and assessable, and thus allowing radio stations to sell 
     themselves better
    The RAM study was launched by TAM India Limited in the cities of Delhi, Mumbai and Bangalore in October 
     2007, it was later expanded to include Kolkata. It is expected to extend to Hyderabad and Chennai soon




                                                  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                              13
High royalty rates and lack of content differentiation 
hamper industry growth
Royalty                                                                                                         Impact
• FM stations currently pay royalty to Phonographic Performance (PPL) representing music 
  publishers and Indian Performing Rights Society (IPRS) representing musicians
    Royalty is paid irrespective of the listener base size of operator or even how old the songs are played
     Royalty is paid irrespective of the listener base, size of operator or even how old the songs are played
• Under an agreement from 2002, stations currently pay INR 660 per needle‐hour, equivalent to 
  45 min of broadcast, costing 24‐hour stations around INR 6 mn a year in royalty fees 
    PPL wants to increase it to INR 2500 per needle hour or 20% of operators' revenues, whichever is highest
    IPRS is demanding INR 1020 per needle hour
                      g            p
    This would make small radio stations not feasible
• Internationally music firms get just between 2‐4% of an FM station’s revenues for music rights 

Lack of content differentiation                                                                                 Impact
• Due to regulatory reasons, the Indian radio industry can only provide non‐news content
    This creates difficulties for the channels who try to differentiate themselves with competition
• Initially, the stations had well defined niche content
    However, pressure to sell airtime & recover costs forced players to play safe by playing Bollywood music
    70% radio programming now comprise of  Bollywood music
• This results in constant channel swapping by listeners
    Thus, radio stations have been unable to generate any significant channel loyalty




                                                  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                             14
Stringent government regulations and bargaining tactics 
used by advertisers impede industry growth
Government regulations                                                                               Impact
• In comparison to other media private FM radio is one of the most regulated mediums in India 
• FDI in radio continues to be at 20%, the lowest as compared to print and television media
• Th
  There are restrictions on broadcasting news and current affairs programmes on private FM 
                 i i        b d      i            d         ff i                     i   FM
    This makes it difficult for radio operators in diversifying content
• Present regulations do not permit operators to own multiple frequencies in the same city, FM 
  broadcaster can have one station per city and 15% of all stations in India 
    This restricts operators in targeting different target segments within the same city
     This restricts operators in targeting different target segments within the same city
• Regulations at present do not permit consolidation of business, before five years of operations
    This restricts the ability for the businesses to expand or consolidate
• In India the mandatory gap between frequencies is 800 Khz as compared to 200 Khz in US
    This creates unused spectrum gaps and reduces number of available frequencies
     This creates unused spectrum gaps and reduces number of available frequencies
• Regulations currently prohibit sharing of facilities and content between different stations
    This prevents economies of scale, increases operating costs and break even periods
Bargaining tactics used by advertisers                                                               Impact
• Airtime is a perishable commodity for radio companies as any unsold airtime is a loss to the 
  station and cannot be recovered
• Advertisers often delay their purchases up to the last minute in order to bring the prices down 
  while continuing negotiations with multiple stations
• R di t ti
  Radio stations are often forced to sell airtime at throwaway prices when sales are not achieved
                      ft f      dt     ll i ti     t th          i     h      l         t hi d



                                                   FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                 15
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   16
Trends ‐ Summary



                                  Emergence of f
                                   Visual Radio

              Players going 
                  Niche                                 Satellite Radio


                                      Trends


              Sales Alliances                         Community Radio



                                 Internet Radio




                       FM RADIO BROADCASTING INDUSTRY – INDIA.PPT         17
Visual and Satellite radio are upcoming trends in this sector

            Emergence of Visual Radio

            • Visual Radio adds a new dimension to FM radio with interactive contents and services for
              mobile radio listeners, increasing listener loyalty for radio station operators while providing
              an opportunity for mobile operators to increase usage for data services
            • Visual Radio allows listeners to tune in to local FM radio via the analog receiver on their 
              mobile phone while simultaneously receiving interactive information and graphics that are 
              synchronized with the radio broadcast via the cellular data network onto the screen
            • Hutch is planning to launch Visual Radio service for its customers in New Delhi, followed by 
              other metros in the country
 Trends
            Satellite Radio

            • A satellite radio is basically a digital format of the medium that receives signals broadcast by 
              communications satellite
            • It is possible to receive satellite radio stations from anywhere in the country, unlike 
              terrestrial radio (AM and FM) whose signals are limited to a certain area
              terrestrial radio (AM and FM) whose signals are limited to a certain area
            • Satellite radio offers digital quality sound and uninterrupted service without any 
              commercials
            • It is not possible to tune in to local radio stations using satellite radio
            • Satellite radio service is not for free, it is available on subscription for a fee
              Satellite radio service is not for free, it is available on subscription for a fee
            • Currently WorldSpace is the only satellite radio offering its services in India


                               FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                         18
Community and Internet radio have helped in improving 
radio listenership in India
           Community Radio

           • Community radio operates out of rural or urban areas and is broadcasted to small areas
           • It operates on non‐commercial basis fulfilling specific needs of various groups 
           • It has a limited broadcast range of about five kilometers
           • It is usually operated by educational institutions and NGOs, who use the service to 
             broadcast public service messages
           • Earlier, for a couple of years, it was mostly ‘campus radio’ stations that were being allowed 
             to operate as community radio
           • Government is also considering 5,000 licenses for community radio
 Trends         Licenses would be divided into sectors, such as farming community, fishing community, women and 
                 children and others




           Internet Radio

           • Internet radio is an audio broadcasting service transmitted through the internet
             Internet radio is an audio broadcasting service transmitted through the internet
           • Internet radio stations are accessible from anywhere in the world, which makes them 
             popular 
               Tata Indicom has launched seamless internet radio services, offering its customers access to 41 
                international and local radio stations through its application, ‘Brew,’ at an attractive price of INR 25 for a 
                15‐day subscription



                                 FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                                       19
Players are forging alliances with other stations and are 
targeting niche audience for improving revenues
            Sales Alliances

            • Radio stations are forging alliances with other stations in order to offer advertisers larger 
              packages to reach bigger audiences 
                 Radio Misty, which operates in the eastern cities of Siliguri and Gangtok and has a sales alliance with 
                  Radio One, which broadcasts in seven cities
                 Radio Mirchi has alliances with Radio Chaska in Gwalior, Radio Gupshup in Guwahati and Radio 
                  Mantra’s eight stations
                 Radio Mirchi’s tie‐up with Radio Mantra of the Dainik Jagran Group has resulted in an encouraging flow 
                  of incremental revenues to both the brands/networks

 Trends
            Players going Niche

            • Stations are expected to try out niche content formats once the government allows multiple 
              license ownership in each city
            • Stations are planning to have programmes in more than one language, and cater to more 
              than one genre of music
              than one genre of music
            • Few radio stations are already targeting niche audience
                Radio Today has niche, talk based Meow 104.8 FM, a channel dedicated to women
                Radio City instance, is targeting  older audiences as compared to other stations
                Red FM is chasing a younger audience
                                  g y       g
                Hit 95 FM plays only English songs



                                 FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                                  20
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   21
Majority of players are backed by media houses with 
interests in other media activities like television or print
Competition Overview                                                                 Private players – No. of Stations
• In terms of reach, All India Radio (AIR), covers 91% of                                  Big FM                                           45
  India's area and reaches 99 % of India’s population                                      Red FM                                      41
• R di Mi hi l d h
  Radio Mirchi leads the overall market with a share, in 
                                ll    k      ih h      i                              Radio Mirchi
                                                                                      R di Mi hi                                  32
  revenue terms, in excess of 40%                                                       Radio City                           20
                                                                                           My FM                        17
• Market comprises of small and large players
                                                                                 Radio Dhamaal 24                  10
    Small players normally have two to four stations
                                                                                     Radio Mantra              8
    Large players are present nationally or in multiple regions
     Large players are present nationally or in multiple regions                        Suryan FM             7
    Majority of players are backed by media houses with                                Radio One             7
     interests in other media activities like TV or Print                                Hello FM             7
      – Such players are in position of providing benefit of cross‐                                       4
                                                                                  Radio Ooo La La
        advertising  to advertisers
                                                                                     Radio Mango          4
• Regulations at present do not permit consolidation of
  Regulations at present do not permit consolidation of                                   Club FM         4
  business, before five years of operations                                              Fever 104        4
    Large players are thus forging strategic sales tie‐up with                    Radio Choklate        3
     the regional or small players                                                       Meow FM         3
• Metro cities are over crowded with FM stations                                      Radio Indigo      2
    18% of all private FM stations are located in metros                                 Nine FM       2
    Metro cities have diverse set of people, hence attract                             Aahaa FM        2
     maximum attention of advertisers                                                Radio Tomato      1
                                                                                       Radio Misty     1
• Radio companies spend a lot of effort on branding
                                                                                           Hit FM      1
    Companies try to differentiate by building loyalty through
     Companies try to differentiate by building loyalty through 
                                                                                    Radio Chaska       1
     RJ shows


                                                          FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                   22
Major Players (1/7)

        Company                      FM Frequency   No. of Stations                                Business Description
       Aahaa FM                          91.9             1            • It broadcasts in Chennai
                                                                       • It also offers Online Live service
                                                                       • It is promoted by Kumudham publications in Tamil Nadu

   All India Radio                      Various       Pan India        • It  is operated by the Prasar Bharati Broadcasting Corporation 
                                      Frequencies                        of India 
         (AIR)
                                                                       • AIR network comprises of 232 broadcasting centers with 149
                                                                         AIR network comprises of 232 broadcasting centers with 149 
                                                                         medium frequency (MW), 54 high frequency (SW) and 171 
                                                                         FM transmitters
                                                                       • AIR broadcasts in 24 languages and 146 dialects in home 
                                                                         services 
                                                                       • In external services AIR covers 27 languages; 17 national and 
                                                                         10 foreign languages
                                                                       • News, music and spoken work programmes are part of AIR's 
                                                                         programme composition 
                                                                       • FM service of AIR has comprises of two channels 
                                                                            FM Rainbow and FM Gold
                                                                            There are 12 FM Rainbow channels and 4 FM Gold Channels
                                                                       • Its popular services include Vividh Bharati and Akashvani 


Note: This list is not exhaustive 

                                                      FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                       23
Major Players (2/7)

        Company                      FM Frequency   No. of Stations                                Business Description
          Big FM                         92.7             45           • It is a radio initiative from Reliance Media World Ltd
                                                                       • It launched its first Station in September 2006
                                                                       • A network of 45 stations including an FM station in Singapore
                                                                                    k f                 l d
                                                                       • Major cities covered include Hyderabad, Mumbai, Delhi, 
                                                                         Kolkata, Mangalore, Jalandhar, Ajmer, Bhopal and Surat
        Club FM                          94.3             4            • Club FM started its service on January 1, 2008 
                                                                       • It is a private FM radio station for the state of Kerala, 
                                                                         operated by the Mathrubhumi in Kerala
                                                                       • Services in Cochin, Thiruvanathapuram, Kannur and Thrissur
       Fever 104                         104              4            • It broadcasts in Mumbai, Bangalore, Delhi and Kolkata
                                                                       • It is operated by HT Media Ltd 
                                                                       • HT Media also owns Hindustan Times, Mint (newspaper), and 
                                                                         social networking site, Desimartini
       Gyan Vani                        Various           26           • It is an educational FM radio station in several cities of India
                                      Frequencies
                                      F         i                      • Operate as ‘media cooperative’ with day‐to‐day programmes 
                                                                         contributed by educational institutions, NGOs, government 
                                                                         and semi‐government organizations, UN agencies, Ministries
                                                                       • Medium of broadcast is English, Hindi or regional language 
                                                                       • Broadcasts through radio network of 26 Gyan Vani Stations

Note: This list is not exhaustive 

                                                      FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                       24
Major Players (3/7)

        Company                      FM Frequency   No. of Stations                                Business Description
        Hello FM                        106.4             7            • It is promoted by Malar Publications
                                                                       • It has broadcasting centers at Chennai, Madurai, Coimbatore, 
                                                                         Trichy, Tirunelveli, Tuticorin and Pondicherry  
                                                                         Trichy Tirunelveli Tuticorin and Pondicherry
                                                                       • It had partnered with the Chennai Sangamam 2007 and 2008, 
                                                                         Mrs. Chennai 2007 and 08 and ATP Tennis Chennai Open 
                                                                         2007 
                                                                       • Hello FM is planning to bid for licenses for 14 locations in
                                                                         Hello FM is planning to bid for licenses for 14 locations in 
                                                                         Tamil Nadu that are likely to be up for bidding in Third Phase 
         Hit  FM                         95               1            • It broadcasts only in Delhi
                                                                       • It partnered with Idea Cellular to present ‘The Michael 
                                                                         Jackson This Is It Challenge the show asks listeners to come
                                                                         Jackson This Is It Challenge’, the show asks listeners to come 
                                                                         on‐air and sing Michael Jackson's (MJ) records
                                                                       • Participants are required to call up a number, which puts 
                                                                         them through to an IVRS and records a 30‐second extract 
                                                                         from any MJ song 
       Meow FM                          104.8             3            • It is present in Mumbai, Kolkata and Delhi
                                                                       • It is an India Today Group venture 
                                                                       • It is Just‐for‐Women Radio station 



Note: This list is not exhaustive 

                                                      FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                       25
Major Players (4/7)

        Company                      FM Frequency   No. of Stations                                Business Description
         My FM                           94.3             17           • It is owned by the Bhaskar Group
                                                                       • It broadcasts in  Ahmedabad, Ajmer, Amritsar, Bilaspur, 
                                                                         Bhopal, Chandigarh, Gwalior, Indore, Jabalpur, Jaipur, 
                                                                         Bhopal Chandigarh Gwalior Indore Jabalpur Jaipur
                                                                         Jalandhar, Jodhpur, Kota, Nagpur, Raipur, Surat and Udaipur 
         Nine FM                         91.9             2            • It broadcasts in Gangtok and Siliguri 
                                                                       • Nine FM also provides opportunity to the common people of 
                                                                         Sikkim to place their requests to listen to their favorite songs, 
                                                                         Sikkim to place their requests to listen to their favorite songs
                                                                         which they want to listen or dedicate to their loved ones 
                                                                       • Nine has collection of Nepali, English and Hindi music 
    Radio Chaska                         95               1            • It operates in Gwalior 
                                                                       • It f
                                                                         It forged a partnership with Radio Netherlands Worldwide 
                                                                                 d      t    hi ith R di N th l d W ld id
                                                                         (RNW) in 2008 and under which it will air the popular 
                                                                         monthly chart show Euro Hit 40, European Jazz, jazz 
                                                                         performances from stages across the Europe  and classical 
                                                                         music
   Radio Choklate                        104              3            • FM radio venture of Orissa from the house of Sambad group
                                                                            Sambad is popular daily newspaper in Orissa
                                                                       • It broadcasts from Rourkela, Cuttack and Bhubneshwar




Note: This list is not exhaustive 

                                                      FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                        26
Major Players (5/7)

        Company                      FM Frequency   No. of Stations                                Business Description
       Radio City                        91.1             20           • Promoted by Music Broadcast Private Limited (MBPL)
                                                                       • Covers Mumbai, Delhi, Bangalore, Chennai, Ahmedabad, 
                                                                         Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur, 
                                                                         Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur,
                                                                         Nagpur, Sangli, Coimbatore, Vizag, Ahmednagar, Akola, 
                                                                         Nanded & Jalgaon 
                                                                       • Provides end‐to‐end 360 degree brand marketing solutions 
                                                                         through its Radio City Connect service
  Radio Dhamaal                         106.4             10
        24                                                             • It is promoted by BAG Films & Media Ltd 
                                                                       • It is available in Hissar, Karnal, Patiala, Muzaffarpur, Dhule 
                                                                         Jalgaon, Ranchi, Ahmednagar, Jabalpur and Shimla 

         Red FM                          93.5             41           • Its network covers 41cities
                                                                       • Prominent cities covered by Red FM include Mumbai, Delhi, 
                                                                         Kolkata Pune, Bhopal, Gwalior, Jabalpur, Indore, Nashik, etc 
                                                                       • It is owned by Sun TV Network
                                                                         It is owned by Sun TV Network 
                                                                       • It was acquired from India Today promoter Living Media in 
                                                                         January 2006
     Radio Indigo                        91.9             2            • Broadcasts in Bangalore and Goa and plays contemporary & 
                                                                         international music 
                                                                         international music

Note: This list is not exhaustive 

                                                      FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                           27
Major Players (6/7)
         Company                        FM        No. of 
                                     Frequency   Stations                                 Business Description

     Radio Mango                       91.9         4
                                                            • It is a Malayala Manorama venture
                                                            • It broadcasts in Thrissur Kozhikode ,Kochi, Kannur
                                                            • It started FM broadcasting from November, 2007 

    Radio Mantra                       91.9         8       • Owned and operated by the Dainik Jagran‐promoted Shri Puran 
                                                              Multimedia Ltd (SPML)
                                                              Multimedia Ltd (SPML)
                                                            • Covers Jalandhar, Agra, Bareilly, Gorakhpur, Hissar, Karnal, Ranchi, 
                                                              Varanasi
                                                            • It forged an alliance for ad sales with Radio Mirchi in 2007
                                                            • Independent News and Media (INM) acquired 20% stake
                                                              Independent News and Media (INM) acquired 20% stake
     Radio Mirchi                      98.3        32       • It is operated by Entertainment Network  India Ltd
                                                            • It launched its first station in Indore in 2001 
                                                            • Licenses in all of India’s fourteen cities with a population of over 2 mn 
                                                            • Key cities covered by Radio Mirchi include Delhi, Mumbai, Kolkata, 
                                                                                 db      d        h     l d    lh       b      lk
                                                              Bangalore, Hyderabad, Chandigarh and Jaipur
                                                            Financials:
                                                            • Reported a total income of INR 4.3 bn and net loss of 603 mn in 
                                                              FY’2008‐09
                                                              FY’2008 09

Note: This list is not exhaustive 

                                                     FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                       28
Major Players (7/7)

                                        FM          No. of 
         Company                                                                            Business Description
                                     Frequency     Stations
      Radio Misty                      94.3           1       • Air programmes in Hindi, Bengali, Nepali and English 
                                                              • It is broadcasted from Siliguri and is audible in the districts of North
                                                                It is broadcasted from Siliguri and is audible in the districts of North 
                                                                Bengal namely Darjeeling, Jalpaiguri, South Dinajpur, North Dinajpur, 
                                                                Coochbehar and eastern part of Bihar and Sikkim
  Radio Ooo La La                      • 91.9         4
                                                              • Promoted by Positiv Radio Pvt. Ltd. 
                                       • 91 5
                                         91.5 
                                                              • Broadcasts in Guwahati, Shillong, Itanagar and Agartala
                                      (Shillong)
       Radio One                       94.3           7       • It is a joint venture between Mid‐day Multimedia and BBC worldwide
                                        &                     • It operates in 7 cities namely Mumbai, Delhi, Bangalore, Kolkata, 
                                       95.0
                                       95 0                     Chennai, Pune and Ahmedabad
                                                                Chennai Pune and Ahmedabad
                                                              • It broadcasts at 94.3 MHz in all cities except in Ahmedabad where it 
                                                                broadcasts on 95.0 Mhz 
    Radio Tomato                       94.3           1       • It is operated by Pudhari Publications 
                                                              • It broadcasts in Kolhapur

       Suryan FM                       93.5           7       • It is a part of Sun TV network
                                                              • Present in Chennai, Coimbatore, Trichy, Madurai, Tirunelveli and 
                                                                  o dc e y
                                                                Pondicherry 

Note: This list is not exhaustive 

                                                       FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                      29
•Privatization of Radio
•Market Overview
 Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments



        FM RADIO BROADCASTING INDUSTRY – INDIA.PPT   30
Key Developments

Date           Development
30‐Nov‐2009    The Indira Gandhi National Open University (IGNOU) started its FM radio channel in Pune, the channel 
               will be available on FM 105.6 every day from 8 am to 1 pm and 3 pm to 8 pm & will primarily relay 
               educational programmes for students, IGNOU has signed a memorandum of understanding with the 
               educational programmes for students IGNOU has signed a memorandum of understanding with the
               All India Radio for transmission of the channel. 
27‐Nov‐2009    Radio One, a joint venture between Mid‐Day Multimedia & BBC Worldwide, will no longer air 
               entertainment capsules produced by BBC World Service, it had been doing so for last 3 years 
26‐Nov‐2009
26 Nov 2009    All India Radio would be carrying forward its association with Digital Radio Mondiale (DRM) by live 
               All I di R di      ld b       i f       d it       i ti    ith Di it l R di M di l (DRM) b li
               broadcasting the 2010 Commonwealth games to be held in Delhi 
26‐Nov‐2009    The country's 49th Community Radio Station (CRS), called 'Rudi No Radio' in Gujarati became 
               operational, it is managed by Self Employed Women's Association (SEWA) Academy in Manipur village 
               in Sanand taluka 
               in Sanand taluka
23‐Nov‐2009    Pepsi has partnered with Fever FM for an activity titled 'Pepsi My Show My Way', in this activity 
               youngsters were asked questions pertaining to their life and situations they face in a 10‐foot high 
               mobile radio studio built in the shape of Pepsi My Can 
13‐Nov‐2009
13 N 2009      The Information & Broadcasting (I&B) ministry has proposed that FM radio players be allowed to 
               operate multiple frequencies in the same city 
29‐Sept‐2009   Nine institutions have been issued licenses for setting up community radio stations in Kerala
03‐Jun‐2009    Adlabs has announced that the Ministry of Information and Broadcasting, has approved a proposal to 
                                                       y                            g       pp        p p
               transfer its FM radio business to Reliance Unicom Ltd (RUL) 


                                       FM RADIO BROADCASTING INDUSTRY – INDIA.PPT                                     31
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FM Radio Broadcasting Industry Growth in India

  • 2. Executive Summary  Radio stations generated a revenue of INR 8 bn in 2008 ; expected to reach INR 18 bn by 2012  Share of radio advertising was 3.3 % in 2008; expected to reach 4% in 2012 Market  Most stations use same level of genre of content with little or no differentiation  There are over 240 radio stations beaming across over 90 cities in India There are over 240 radio stations beaming across over 90 cities in India Drivers: Challenges: – Increasing radio listener base – Royalty – Opportunities in Phase III expansion – Lack of content differentiation – Increasing advertising by small local brands Increasing advertising by small local brands – Government regulations Government regulations Drivers &  Di & – Favourable demographics – Bargaining tactics used by advertisers Challenges – Political advertising – Introduction of new performance measurement tool   Emergence of Visual Radio Emergence of Visual Radio  Satellite Radio  Community Radio Trends  Internet Radio  Sales Alliances Sales Alliances  Players going Niche  All India Radio (AIR), covers 91% of India's area and reaches 99% of India’s population  Radio Mirchi leads the overall market with share in revenue terms in excess of 40% Competition  Big FM leads in terms of highest number of stations  Majority of players are backed by media houses with interests in media activities like TV or Print FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 2
  • 4. Privatization of Radio in India was a lengthy process Time Line Radio Privatization • Private broadcasters sold slots on AIR’s FM channels for certain key cities, the service was later  1993 discontinued in 1998 di ti d i 1998 • Privatization of FM ‐ Phase I Policy  1999 • Bids were invited for allotting licenses for a ten‐year period 2000 • Phase I FM broadcast licensing, auction was conducted 2001 • Licenses issued to private radio broadcasters • In February 2004 TRAI was asked to give recommendations for Phase II licensing of FM radio 2004 • In August 2004, TRAI presented its recommendations on the regulatory framework for private FM  stations 2005 • Announcement of Phase II Policy of privatization of FM 2006 • Licenses for 91 cities were auctioned FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 4
  • 5. Phase I policy was not successful due to a high license fee  structure , Phase II helped in reviving radio industry 1999 - Phase I of Radio Licensing Total Frequencies on Offer 108 frequencies across 40 cities Allotments 37 licenses were taken up and 22 radio stations took off across 12 cities in the Phase-I Key Features • In Phase I Policy of FM radio privatization, private operators were invited to bid for a 10-year license to set-up and operate FM radio stations • No limits or penalties were levied on speculative bidding • No foreign equity was allowed • Bids often reaching unrealistic levels, many winning bidders paid inflated fees • 50% of the license fee had to be paid upfront by the players • Determination of license fee was by auction for each market Revenues Earned by Govt. From Phase-I Government earned INR 1.55 bn 2005 - Phase II of Radio Licensing Total Frequencies on Offer 338 frequencies in 91 cities Allotments Private FM Radio companies bidding for these licenses won 280 out of these 338 frequencies Key Features • All the 91 cities were classified in A-plus, A, B, C and D categories • Total 85 private players, apart from media companies and players from other sectors, were shortlisted for bidding h tli t d f biddi • Phase II granted licenses on one time entry fee (OTEF) basis along with annual revenue sharing at 4% of annual gross revenue or 10% of the reserved OTEF for the concerned city • Government permitted automatic migration of Phase-I players if they clear all the previous dues and pay OTEF equal to the average of all successful bids under Phase-II in that city Revenues Earned by Govt. Government earned over INR 9 bn from Phase II round of licensing FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 5
  • 7. Radio Market has a good growth potential Market Overview Advertising Revenues and Share • There are over 240 radio stations beaming across ~90  Advertising Revenues cities in India INR bn % Share of Radio in Ad Pie % 4.0 18.0 3.8 38 • R di Radio programming during primetime consists of at  i d i i ti it f t 20 3.6 3.5 4 3.2 3.3 least 40 minutes of music, 9 minutes of Ads and 5  3.1 15.0 minutes of jockey talk 15 2.5 12.0 3 2.1 • Radio advertising penetration in India is low as  10 10.0 2 8.0 compared to other nations compared to other nations 6.2 62 5.0  Demand for radio advertising is expected to increase as  5 3.2 1 2.4 the players across industries feel the impact of recession 0 0 • Radio’s national footprint is expected to rise with  2004 2005 2006 2007 2008 2009e 2010e 2011e 2012e phase III round of licensing Radio Advertising Share in Total Ad Spend Advertisers Profile on Radio % Media 9.4 Others 10 8.4 22% 26% 5 4.4 3.3 8% 14% Telecom FMCG 8% 12% 0 10% Retail India China Singapore World Finance Durables FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 7
  • 8. Operating cost for a radio station differ with category of the  city • Set‐up costs include transmission and studio equipment, networking infrastructure, office premises & equipment  • Set‐up cost varies from small to large stations Set‐up Cost  It ranges between INR 15 – 25 mn for smaller stations   For metro or a large city stations it is INR 40 – 50 mn  • Music Royalty :  It ranges in between INR 5‐ 7 mn per year it is constant since current system does not differentiate  between population of city and station location • Payroll Costs: Radio jockeys and guests comprise a third of total payroll costs.  • Marketing Costs are concentrated on cities where listener base is highest, large radio companies do not have high  Operating Cost marketing budgets for smaller stations • License fees are to be paid, 4% of gross revenues • Other operating costs are generally fixed and do not vary month by month these include lease rentals, utility costs,  security, administration and radio tower rentals y, Metros A & B Category Cities C & D Category Cities 22% 21% 10% 14% 7% Marketing 33% 8% Payroll P ll 28% 7% 10% 34% Royalty 7% Rentals 31% 25% 43% Others Note: Categorization of stations in Phase II is according to Population A+ :Top 4 Metros;  A: Population above 2 mn; B:Population between 1 – 2 mn;  C: Population between 0.3  ‐ 1 mn; D: Population between 0.1  ‐ 0.3 mn FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 8
  • 10. Drivers & Challenges ‐ Summary Drivers Challenges Increasing radio listener base Royalty Opportunities in Phase III expansion Lack of content differentiation Increasing advertising by small local  Government regulations brands Favourable demographics Bargaining tactics used by advertisers Political advertising Introduction of new performance  measurement tool FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 10
  • 11. Increasing radio listener base and expansion opportunities  in Phase III is driving growth in radio industry in India Increasing Radio Listener base Impact • Easy availability of FM radio sets at affordable price points ranging between INR 40‐INR 150 has   fueled its mass penetration • India has an estimated 180 million radio sets, reaching over 99% of its one billion inhabitants  This indicates vast commercial potential in India for radio market • Availability of radio enabled mobile handsets has helped in popularizing the radio  It is estimated that 25% of mobile subscribers in India have radio enabled mobile phones  This implies that more than over 60 million people can access the radio stations while traveling • Consumption of radio in India is still largely at home, 'the radio on the move' trend is catching  on in urban and semi‐urban areas  People in urban areas are listening to radio while traveling in cars using the car stereo Opportunities in Phase III expansion Impact • The third phase of the FM Radio expansion proposes adding 790 new channels in 290 towns  which have a population of over 100,000 • Third phase is likely to allow broadcasters to own multiple frequencies which will in turn  increase their revenue and profitability by offering more programming options to listeners • Tradability of licenses is likely to be allowed after 3 years instead of the present 5 years • Government is considering opening news, current affairs and sports to the private players g p g , p p p y FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 11
  • 12. Increasing ad spend by small local brands and favorable  demographics is expected to drive FM radio industry Increasing advertising by small local brands Impact • Radio by its very nature, is a localized medium, due to it’s ability to transmit messages over a  small geographical area • L l fi Local firms with region specific requirements prefer advertising through radio ith i ifi i t f d ti i th h di • Advertising on radio costs just 15% that of television  Low cost of advertising has encouraged many local firms to try advertising through Radio • Approximately 40% of ad revenues in smaller towns come from local brands Favourable demographics Impact • India has one of the youngest populations  in the world  Two‐third of India is under 35 years of age and the median age is about 24 years   Urban India accounts for nearly 30% of this young population • FM radio players are targeting this young population who look at radio as mean of  entertainment at home and even when they are on‐the‐move • Radio stations are hiring young and energetic radio jockeys who can easily connect with the  target population • Young population is an attractive segment for most advertisers Median Age years 50 35 41 24 30 0 India China US Japan FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 12
  • 13. Political advertising and new performance measurement  tool are positive developments for this sector Political advertising Impact • Government has allowed political advertising on private FM stations  Political advertising was earlier permitted for other mass mediums except private radio stations  Radio broadcasters had earlier requested the Government to allow political advertising • Radio being the best local media available to connect with people even in far‐flung areas has  made it a preferred medium for political parties • Many radio broadcasters have benefited from the ad spends of various regional and national  parties during the elections Introduction of new performance measurement tool  Impact • Introduction of a new performance measurement tool ‐Radio Audience Measurement (RAM) ‐ is  p ( ) expected to aid the growth in radio advertising  Although another radio listener measurement tool Indian Listenership Track (ILT) ‐ already exists in the  market, advent of RAM provides another option to both advertisers and radio stations  Both RAM and ILT are expected to aid the growth in radio advertising by making the measurement of return  p g g y g on investment for advertisers more scientific and assessable, and thus allowing radio stations to sell  themselves better  The RAM study was launched by TAM India Limited in the cities of Delhi, Mumbai and Bangalore in October  2007, it was later expanded to include Kolkata. It is expected to extend to Hyderabad and Chennai soon FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 13
  • 14. High royalty rates and lack of content differentiation  hamper industry growth Royalty Impact • FM stations currently pay royalty to Phonographic Performance (PPL) representing music  publishers and Indian Performing Rights Society (IPRS) representing musicians  Royalty is paid irrespective of the listener base size of operator or even how old the songs are played Royalty is paid irrespective of the listener base, size of operator or even how old the songs are played • Under an agreement from 2002, stations currently pay INR 660 per needle‐hour, equivalent to  45 min of broadcast, costing 24‐hour stations around INR 6 mn a year in royalty fees   PPL wants to increase it to INR 2500 per needle hour or 20% of operators' revenues, whichever is highest  IPRS is demanding INR 1020 per needle hour g p  This would make small radio stations not feasible • Internationally music firms get just between 2‐4% of an FM station’s revenues for music rights  Lack of content differentiation Impact • Due to regulatory reasons, the Indian radio industry can only provide non‐news content  This creates difficulties for the channels who try to differentiate themselves with competition • Initially, the stations had well defined niche content  However, pressure to sell airtime & recover costs forced players to play safe by playing Bollywood music  70% radio programming now comprise of  Bollywood music • This results in constant channel swapping by listeners  Thus, radio stations have been unable to generate any significant channel loyalty FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 14
  • 15. Stringent government regulations and bargaining tactics  used by advertisers impede industry growth Government regulations Impact • In comparison to other media private FM radio is one of the most regulated mediums in India  • FDI in radio continues to be at 20%, the lowest as compared to print and television media • Th There are restrictions on broadcasting news and current affairs programmes on private FM  i i b d i d ff i i FM  This makes it difficult for radio operators in diversifying content • Present regulations do not permit operators to own multiple frequencies in the same city, FM  broadcaster can have one station per city and 15% of all stations in India   This restricts operators in targeting different target segments within the same city This restricts operators in targeting different target segments within the same city • Regulations at present do not permit consolidation of business, before five years of operations  This restricts the ability for the businesses to expand or consolidate • In India the mandatory gap between frequencies is 800 Khz as compared to 200 Khz in US  This creates unused spectrum gaps and reduces number of available frequencies This creates unused spectrum gaps and reduces number of available frequencies • Regulations currently prohibit sharing of facilities and content between different stations  This prevents economies of scale, increases operating costs and break even periods Bargaining tactics used by advertisers  Impact • Airtime is a perishable commodity for radio companies as any unsold airtime is a loss to the  station and cannot be recovered • Advertisers often delay their purchases up to the last minute in order to bring the prices down  while continuing negotiations with multiple stations • R di t ti Radio stations are often forced to sell airtime at throwaway prices when sales are not achieved ft f dt ll i ti t th i h l t hi d FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 15
  • 17. Trends ‐ Summary Emergence of f Visual Radio Players going  Niche Satellite Radio Trends Sales Alliances Community Radio Internet Radio FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 17
  • 18. Visual and Satellite radio are upcoming trends in this sector Emergence of Visual Radio • Visual Radio adds a new dimension to FM radio with interactive contents and services for mobile radio listeners, increasing listener loyalty for radio station operators while providing an opportunity for mobile operators to increase usage for data services • Visual Radio allows listeners to tune in to local FM radio via the analog receiver on their  mobile phone while simultaneously receiving interactive information and graphics that are  synchronized with the radio broadcast via the cellular data network onto the screen • Hutch is planning to launch Visual Radio service for its customers in New Delhi, followed by  other metros in the country Trends Satellite Radio • A satellite radio is basically a digital format of the medium that receives signals broadcast by  communications satellite • It is possible to receive satellite radio stations from anywhere in the country, unlike  terrestrial radio (AM and FM) whose signals are limited to a certain area terrestrial radio (AM and FM) whose signals are limited to a certain area • Satellite radio offers digital quality sound and uninterrupted service without any  commercials • It is not possible to tune in to local radio stations using satellite radio • Satellite radio service is not for free, it is available on subscription for a fee Satellite radio service is not for free, it is available on subscription for a fee • Currently WorldSpace is the only satellite radio offering its services in India FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 18
  • 19. Community and Internet radio have helped in improving  radio listenership in India Community Radio • Community radio operates out of rural or urban areas and is broadcasted to small areas • It operates on non‐commercial basis fulfilling specific needs of various groups  • It has a limited broadcast range of about five kilometers • It is usually operated by educational institutions and NGOs, who use the service to  broadcast public service messages • Earlier, for a couple of years, it was mostly ‘campus radio’ stations that were being allowed  to operate as community radio • Government is also considering 5,000 licenses for community radio Trends  Licenses would be divided into sectors, such as farming community, fishing community, women and  children and others Internet Radio • Internet radio is an audio broadcasting service transmitted through the internet Internet radio is an audio broadcasting service transmitted through the internet • Internet radio stations are accessible from anywhere in the world, which makes them  popular   Tata Indicom has launched seamless internet radio services, offering its customers access to 41  international and local radio stations through its application, ‘Brew,’ at an attractive price of INR 25 for a  15‐day subscription FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 19
  • 20. Players are forging alliances with other stations and are  targeting niche audience for improving revenues Sales Alliances • Radio stations are forging alliances with other stations in order to offer advertisers larger  packages to reach bigger audiences   Radio Misty, which operates in the eastern cities of Siliguri and Gangtok and has a sales alliance with  Radio One, which broadcasts in seven cities  Radio Mirchi has alliances with Radio Chaska in Gwalior, Radio Gupshup in Guwahati and Radio  Mantra’s eight stations  Radio Mirchi’s tie‐up with Radio Mantra of the Dainik Jagran Group has resulted in an encouraging flow  of incremental revenues to both the brands/networks Trends Players going Niche • Stations are expected to try out niche content formats once the government allows multiple  license ownership in each city • Stations are planning to have programmes in more than one language, and cater to more  than one genre of music than one genre of music • Few radio stations are already targeting niche audience  Radio Today has niche, talk based Meow 104.8 FM, a channel dedicated to women  Radio City instance, is targeting  older audiences as compared to other stations  Red FM is chasing a younger audience g y g  Hit 95 FM plays only English songs FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 20
  • 22. Majority of players are backed by media houses with  interests in other media activities like television or print Competition Overview Private players – No. of Stations • In terms of reach, All India Radio (AIR), covers 91% of  Big FM 45 India's area and reaches 99 % of India’s population Red FM 41 • R di Mi hi l d h Radio Mirchi leads the overall market with a share, in  ll k ih h i Radio Mirchi R di Mi hi 32 revenue terms, in excess of 40% Radio City 20 My FM 17 • Market comprises of small and large players Radio Dhamaal 24 10  Small players normally have two to four stations Radio Mantra 8  Large players are present nationally or in multiple regions Large players are present nationally or in multiple regions Suryan FM 7  Majority of players are backed by media houses with  Radio One 7 interests in other media activities like TV or Print Hello FM 7 – Such players are in position of providing benefit of cross‐ 4 Radio Ooo La La advertising  to advertisers Radio Mango 4 • Regulations at present do not permit consolidation of Regulations at present do not permit consolidation of  Club FM 4 business, before five years of operations Fever 104 4  Large players are thus forging strategic sales tie‐up with  Radio Choklate 3 the regional or small players Meow FM 3 • Metro cities are over crowded with FM stations Radio Indigo 2  18% of all private FM stations are located in metros Nine FM 2  Metro cities have diverse set of people, hence attract  Aahaa FM 2 maximum attention of advertisers Radio Tomato 1 Radio Misty 1 • Radio companies spend a lot of effort on branding Hit FM 1  Companies try to differentiate by building loyalty through Companies try to differentiate by building loyalty through  Radio Chaska 1 RJ shows FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 22
  • 23. Major Players (1/7) Company  FM Frequency No. of Stations Business Description Aahaa FM 91.9 1 • It broadcasts in Chennai • It also offers Online Live service • It is promoted by Kumudham publications in Tamil Nadu All India Radio Various  Pan India • It  is operated by the Prasar Bharati Broadcasting Corporation  Frequencies of India  (AIR) • AIR network comprises of 232 broadcasting centers with 149 AIR network comprises of 232 broadcasting centers with 149  medium frequency (MW), 54 high frequency (SW) and 171  FM transmitters • AIR broadcasts in 24 languages and 146 dialects in home  services  • In external services AIR covers 27 languages; 17 national and  10 foreign languages • News, music and spoken work programmes are part of AIR's  programme composition  • FM service of AIR has comprises of two channels   FM Rainbow and FM Gold  There are 12 FM Rainbow channels and 4 FM Gold Channels • Its popular services include Vividh Bharati and Akashvani  Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 23
  • 24. Major Players (2/7) Company  FM Frequency No. of Stations Business Description Big FM 92.7 45 • It is a radio initiative from Reliance Media World Ltd • It launched its first Station in September 2006 • A network of 45 stations including an FM station in Singapore k f l d • Major cities covered include Hyderabad, Mumbai, Delhi,  Kolkata, Mangalore, Jalandhar, Ajmer, Bhopal and Surat Club FM  94.3  4 • Club FM started its service on January 1, 2008  • It is a private FM radio station for the state of Kerala,  operated by the Mathrubhumi in Kerala • Services in Cochin, Thiruvanathapuram, Kannur and Thrissur Fever 104 104 4 • It broadcasts in Mumbai, Bangalore, Delhi and Kolkata • It is operated by HT Media Ltd  • HT Media also owns Hindustan Times, Mint (newspaper), and  social networking site, Desimartini Gyan Vani Various  26 • It is an educational FM radio station in several cities of India Frequencies F i • Operate as ‘media cooperative’ with day‐to‐day programmes  contributed by educational institutions, NGOs, government  and semi‐government organizations, UN agencies, Ministries • Medium of broadcast is English, Hindi or regional language  • Broadcasts through radio network of 26 Gyan Vani Stations Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 24
  • 25. Major Players (3/7) Company  FM Frequency No. of Stations Business Description Hello FM  106.4  7 • It is promoted by Malar Publications • It has broadcasting centers at Chennai, Madurai, Coimbatore,  Trichy, Tirunelveli, Tuticorin and Pondicherry   Trichy Tirunelveli Tuticorin and Pondicherry • It had partnered with the Chennai Sangamam 2007 and 2008,  Mrs. Chennai 2007 and 08 and ATP Tennis Chennai Open  2007  • Hello FM is planning to bid for licenses for 14 locations in Hello FM is planning to bid for licenses for 14 locations in  Tamil Nadu that are likely to be up for bidding in Third Phase  Hit  FM  95 1 • It broadcasts only in Delhi • It partnered with Idea Cellular to present ‘The Michael  Jackson This Is It Challenge the show asks listeners to come Jackson This Is It Challenge’, the show asks listeners to come  on‐air and sing Michael Jackson's (MJ) records • Participants are required to call up a number, which puts  them through to an IVRS and records a 30‐second extract  from any MJ song  Meow FM 104.8 3 • It is present in Mumbai, Kolkata and Delhi • It is an India Today Group venture  • It is Just‐for‐Women Radio station  Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 25
  • 26. Major Players (4/7) Company  FM Frequency No. of Stations Business Description My FM  94.3  17 • It is owned by the Bhaskar Group • It broadcasts in  Ahmedabad, Ajmer, Amritsar, Bilaspur,  Bhopal, Chandigarh, Gwalior, Indore, Jabalpur, Jaipur,  Bhopal Chandigarh Gwalior Indore Jabalpur Jaipur Jalandhar, Jodhpur, Kota, Nagpur, Raipur, Surat and Udaipur  Nine FM 91.9 2 • It broadcasts in Gangtok and Siliguri  • Nine FM also provides opportunity to the common people of  Sikkim to place their requests to listen to their favorite songs,  Sikkim to place their requests to listen to their favorite songs which they want to listen or dedicate to their loved ones  • Nine has collection of Nepali, English and Hindi music  Radio Chaska  95 1 • It operates in Gwalior  • It f It forged a partnership with Radio Netherlands Worldwide  d t hi ith R di N th l d W ld id (RNW) in 2008 and under which it will air the popular  monthly chart show Euro Hit 40, European Jazz, jazz  performances from stages across the Europe  and classical  music Radio Choklate 104 3 • FM radio venture of Orissa from the house of Sambad group  Sambad is popular daily newspaper in Orissa • It broadcasts from Rourkela, Cuttack and Bhubneshwar Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 26
  • 27. Major Players (5/7) Company  FM Frequency No. of Stations Business Description Radio City 91.1  20 • Promoted by Music Broadcast Private Limited (MBPL) • Covers Mumbai, Delhi, Bangalore, Chennai, Ahmedabad,  Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur,  Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat, Sholapur, Nagpur, Sangli, Coimbatore, Vizag, Ahmednagar, Akola,  Nanded & Jalgaon  • Provides end‐to‐end 360 degree brand marketing solutions  through its Radio City Connect service Radio Dhamaal  106.4  10 24 • It is promoted by BAG Films & Media Ltd  • It is available in Hissar, Karnal, Patiala, Muzaffarpur, Dhule  Jalgaon, Ranchi, Ahmednagar, Jabalpur and Shimla  Red FM 93.5 41 • Its network covers 41cities • Prominent cities covered by Red FM include Mumbai, Delhi,  Kolkata Pune, Bhopal, Gwalior, Jabalpur, Indore, Nashik, etc  • It is owned by Sun TV Network It is owned by Sun TV Network  • It was acquired from India Today promoter Living Media in  January 2006 Radio Indigo 91.9 2 • Broadcasts in Bangalore and Goa and plays contemporary &  international music  international music Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 27
  • 28. Major Players (6/7) Company  FM No. of  Frequency Stations Business Description Radio Mango 91.9 4 • It is a Malayala Manorama venture • It broadcasts in Thrissur Kozhikode ,Kochi, Kannur • It started FM broadcasting from November, 2007  Radio Mantra  91.9 8 • Owned and operated by the Dainik Jagran‐promoted Shri Puran  Multimedia Ltd (SPML) Multimedia Ltd (SPML) • Covers Jalandhar, Agra, Bareilly, Gorakhpur, Hissar, Karnal, Ranchi,  Varanasi • It forged an alliance for ad sales with Radio Mirchi in 2007 • Independent News and Media (INM) acquired 20% stake Independent News and Media (INM) acquired 20% stake Radio Mirchi 98.3 32 • It is operated by Entertainment Network  India Ltd • It launched its first station in Indore in 2001  • Licenses in all of India’s fourteen cities with a population of over 2 mn  • Key cities covered by Radio Mirchi include Delhi, Mumbai, Kolkata,  db d h l d lh b lk Bangalore, Hyderabad, Chandigarh and Jaipur Financials: • Reported a total income of INR 4.3 bn and net loss of 603 mn in  FY’2008‐09 FY’2008 09 Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 28
  • 29. Major Players (7/7) FM No. of  Company  Business Description Frequency Stations Radio Misty 94.3 1 • Air programmes in Hindi, Bengali, Nepali and English  • It is broadcasted from Siliguri and is audible in the districts of North It is broadcasted from Siliguri and is audible in the districts of North  Bengal namely Darjeeling, Jalpaiguri, South Dinajpur, North Dinajpur,  Coochbehar and eastern part of Bihar and Sikkim Radio Ooo La La • 91.9  4 • Promoted by Positiv Radio Pvt. Ltd.  • 91 5 91.5  • Broadcasts in Guwahati, Shillong, Itanagar and Agartala (Shillong) Radio One 94.3 7 • It is a joint venture between Mid‐day Multimedia and BBC worldwide & • It operates in 7 cities namely Mumbai, Delhi, Bangalore, Kolkata,  95.0 95 0 Chennai, Pune and Ahmedabad Chennai Pune and Ahmedabad • It broadcasts at 94.3 MHz in all cities except in Ahmedabad where it  broadcasts on 95.0 Mhz  Radio Tomato 94.3 1 • It is operated by Pudhari Publications  • It broadcasts in Kolhapur Suryan FM 93.5  7 • It is a part of Sun TV network • Present in Chennai, Coimbatore, Trichy, Madurai, Tirunelveli and  o dc e y Pondicherry  Note: This list is not exhaustive  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 29
  • 31. Key Developments Date Development 30‐Nov‐2009 The Indira Gandhi National Open University (IGNOU) started its FM radio channel in Pune, the channel  will be available on FM 105.6 every day from 8 am to 1 pm and 3 pm to 8 pm & will primarily relay  educational programmes for students, IGNOU has signed a memorandum of understanding with the  educational programmes for students IGNOU has signed a memorandum of understanding with the All India Radio for transmission of the channel.  27‐Nov‐2009 Radio One, a joint venture between Mid‐Day Multimedia & BBC Worldwide, will no longer air  entertainment capsules produced by BBC World Service, it had been doing so for last 3 years  26‐Nov‐2009 26 Nov 2009 All India Radio would be carrying forward its association with Digital Radio Mondiale (DRM) by live  All I di R di ld b i f d it i ti ith Di it l R di M di l (DRM) b li broadcasting the 2010 Commonwealth games to be held in Delhi  26‐Nov‐2009 The country's 49th Community Radio Station (CRS), called 'Rudi No Radio' in Gujarati became  operational, it is managed by Self Employed Women's Association (SEWA) Academy in Manipur village  in Sanand taluka  in Sanand taluka 23‐Nov‐2009 Pepsi has partnered with Fever FM for an activity titled 'Pepsi My Show My Way', in this activity  youngsters were asked questions pertaining to their life and situations they face in a 10‐foot high  mobile radio studio built in the shape of Pepsi My Can  13‐Nov‐2009 13 N 2009 The Information & Broadcasting (I&B) ministry has proposed that FM radio players be allowed to  operate multiple frequencies in the same city  29‐Sept‐2009 Nine institutions have been issued licenses for setting up community radio stations in Kerala 03‐Jun‐2009 Adlabs has announced that the Ministry of Information and Broadcasting, has approved a proposal to  y g pp p p transfer its FM radio business to Reliance Unicom Ltd (RUL)  FM RADIO BROADCASTING INDUSTRY – INDIA.PPT 31
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