An indepth study & presentation done by me on the Radio industry in india- 2012 for my MBA program My Contact: sohail@radio.fm www.facebook.com/RJSoh www.facebook.com/RJSohailsayani www.twitter.com/ToMainKyaNachun http://in.linkedin.com/in/sohailsayani email me !!!..................... sohail@radio.fmA

1. Media & Entertainment: Radio
Sectoral Analysis-by Sohail Sayani, PGDM-Business Design,
Welingkar,Mumbai , (email- sohail@radio.fm)
27/4/12
(India
Specific) By SOHAIL SAYANI 1

2. By SOHAIL SAYANI 2

3. Key Individuals
• "The Father of Radio Broadcasting”
Reginald Fessenden
• On Christmas Eve 1906, Fessenden made the
first radio broadcast in history
• Gave a rendition of "O Holy Night" on his
violin
By SOHAIL SAYANI 3

4. Major Breakthroughs
• First CAR radio
• Galvin Mfg Company >>
By SOHAIL SAYANI 4

5. Major Breakthroughs
• Satellite Radio
• XM, 2001
• SIRIUS, 2002
By SOHAIL SAYANI 5

6. Major Breakthroughs
• MP3 files –
• 1995
• Small Sized files
• Easy to Store
• Easy to Distribute
• Took the internet by storm
By SOHAIL SAYANI 6

7. Major Breakthroughs
• RealAudio –
• 1995
• Continuous Transmission called “Streaming”
• ILLUSION of being like Radio Transmission ,but
via the Internet
By SOHAIL SAYANI 7

8. Major Breakthroughs
Shoutcast by WinAmp-
• 1998
• Justin Frankel and Tom Pepper
• 1st free software for
MP3 streaming
• Anyone can create
own web Radio Station
By SOHAIL SAYANI 8

9. Major Breakthroughs
• officially named so in 1999 by WEC, the
Wireless Ethernet Compatibility Alliance (now
the Wi-Fi Alliance)
• WebRadio could jump from computers to
mobile devices
By SOHAIL SAYANI 9

10. Major Breakthroughs
• Broadband
• circa 2000
• choppy and “buffering”
audio moved on to audio
to continuous streams
of higher fidelity.
By SOHAIL SAYANI 10

11. Major Breakthroughs
• Podcasting –
• 2004 , iPodderX, developed
by August Trometer
and Ray Slakinski.
By SOHAIL SAYANI 11

12. Indian Radio History
• 1923 :India's first radio station was
established by the Radio Club of Bombay.
• By 1927, two privately owned transmitters
were set up in Mumbai and Calcutta.
• They were later nationalised by the British
rule in 1930 and operated under the name
Indian Broadcasting Service
• 1936:it was renamed All India Radio (AIR)
By SOHAIL SAYANI 12

13. Key Individuals
• Ameen Sayani
Of “Behnon Aur Bhaiyyon” Fame
1952: Binaca Geetmala on Radio Ceylon.
Bournvita Quiz Contest
(Sri Lanka has the oldest radio station in Asia
Broadcasting was started on an experimental
basis in Ceylon by the Telegraph Department in
1923, just three years after the inauguration of broadcasting in Europe.)
(Filmi music was banned by All India Radio and other Indian radio stations at
the time
Radio Ceylon ruled the airwaves in South Asia as millions in the Indian sub-
continent tuned into the radio station. People picked up Radio Ceylon
broadcasts as far away as the United States of America)
15 second audio
Source : http://www.planetradiocity.com/musicopedia/music_decade.php?conid=2337 & wikipedia
By SOHAIL SAYANI 13

14. Major Breakthroughs
• 1993: All India Radio giving TIME SLOTS to
Private Players: Times FM, Radio Mid-day
• Re Opening of Private FM Radio in 2001
This gave way to the Reincarnation of FM Radio
By letting them own FREQUENCIES rather than
time slots on AIR
By SOHAIL SAYANI 14

15. Past Trends (India)
Mumbai Example (During Launch year):
• GO 92.5 FM: Totally English (SEC A+)
• Win 94.6 FM : 2/3rd of the music played was
western
• Radio Mirchi 98.3 FM : Only few Eng songs
• 93.5 Red FM : about 50 % eng music
• Radio City 91 FM : Few Eng songs
• Fever FM : every 5th song was english
• Big 92.7 FM (late launch): Initially started with
Hindi
By SOHAIL SAYANI 15

16. Past Trends (India)
Mumbai Example (The Shake-up !!)
• GO 92.5 FM: Shifts gradually to Hindi (very
late)
• Win 94.6 FM: Shifts to Hindi (after struggling)
• Radio Mirchi 98.3 FM : Realised very early that
only BOLLYWOOD will work
• 93.5 Red FM : to HINDI
• Radio City 91 FM : Hindi
• Fever FM : All Eng songs stopped
By SOHAIL SAYANI 16

17. Past Trends (India)
Unprofitable:
Win 94.6 FM Mumbai: launched in April 2002
Went off air on May 27, 2003 to protest against the high license fees
Came back on air with HINDI content
It shut down on April 29,2004 because of high license fees,
which were way above the radio stations' earning capacity
In the first year (2002-2003) of operation, five FM operators suffered a combined loss
of Rs 120 ($ 2.4 Mn) crore against a total revenue of Rs 48 crore.
In calendar 2003, only Rs 50 crore ($10 mn) was spent on radio,
which is 0.5 per cent ad revenue for the channels
The channels had to pay a heavy price in terms of a huge licence fee of around
Rs 10 crore annually, with an escalation clause of 15 per cent annually.
By SOHAIL SAYANI 17
Others survived because they were backed by big media houses

18. Past Trends (India)
Talk Radio Format:
•Meow 104.8 FM : India’s first and
only WOMEN’s channel
•More Talk (approx 15 to 20 mins,
then a song)
•Initially served Eng music with eng talk
•Then replaced eng music with hindi,but continued eng talk
•FAILED concept !
•Rebranded as OYE 104.8 FM ,with essence of being FILMY
•Only Bollywood related TALK & Music
By SOHAIL SAYANI 18

19. Niche TG
• Only major station with International Music
• Launched in 2006 in Bangalore
• Second station in Goa around 2009
• Delhi has a station Hit 95 FM with mainly plays eng music
By SOHAIL SAYANI 19

20. Key Players
Frequency Brand Name Owned by Parent No of Stations/ FDI
Company towns/ cities
91.1 Radio City Music IVF Holdings 21 + 1 Web Radio
Broadcast Pvt. Ltd
92.7 Big FM Reliance Reliance 45
Broadcast ADAG
93.5 Red FM/ S FM Digital Radio Sun TV 45
94.3 Radio One Next Mid-day / 7 BBC
MediaWorks Tariq Ansari
94.3 MY FM DB Corp Dainik 17
Bhaskar
98.3 Radio Mirchi ENIL Times of 32
India
104 Fever FM HT Media Hindustan 5 Virgin
Times Radio
104.8 Oye FM Radio Today India Today 5
Various All India Radio Prasar Govt of 280+ N.A.
(AM & FM) Bharti India
By SOHAIL SAYANI 20
AIR reaches out to 99.37% of India's population.

21. Value Parameters
• Language of Talking
• Songs
• Medium (Terrestrial/Web etc)
• Radio Jockeys
• Clarity of Broadcast
• Content/Theme
• Contests
• Funny Characters & Mimicry in between
• Humour
• Personal Song Requests
• Dedications & shout out messages
• Lesser number of Commercials
• Duration of RJ talk
By SOHAIL SAYANI 21

22. Competitor Offerings (Mumbai)
City Big Red One Mirchi Fever OYE Gold Rainbow
Language Hindi Hindi Hindi Hindi Hindi Hindi Hindi Hindi/ Hindi
of Talking Marat Marathi
& Songs hi English
Songs Differs Latest & Every Differs Differs time- Differs Old Mixed
time- constant Zamana time-wise wise time-wise Retro Unpredictabl
wise e
Medium FM+ FM FM FM FM FM FM FM+D FM
Web TH+CA
S
Radio Original Two Top Newbies Top One veteran Not well Freela Freelancers
Jockeys Love Guru Love known ncers
Gurus
Clarity of Clear Clear Super Clear Super Clear Clear Clear Unclear
Broadcast Clear Clear
Content/ GEC type GEC type GEC type GEC type GEC type GEC type Bollywood Rando Random
Theme only m/
Cricket
Comedy Babbar Javed & Hoezay Ghanta Sud ! Bollywood Golmaal - -
Sher Farhan (Jose) & Singh Baba & Sir Sir
Akhtar Suresh Sir
Menon
By SOHAIL SAYANI 22

23. StakeHolders
Primary Secondary
LISTENERS Show Producers/ Music Managers
/Programming Directors/Back-end
support
Radio Jockeys Government
Advertisers TRAI
Films Media Houses
Songs Products & Brands
Singers & Artists Traffic
Celebrities Telecom Companies
Mobile/Music System/Gadget Music Labels
Cricket
Current Affairs
RAM Rating Agency
By SOHAIL SAYANI 23

24. LISTENERS
Home & Out of Home Music System,Car, Mobile,Web
Age group Kids,Teens,18-25, 25 to 40, 40+
Active & Passive Listeners While doing work,etc
Callers/Contest Participants
Profession-wise School & college students, House wives,
High end Corporates,Executives,etc
Socio Economic Category SEC A,B,C
Gender M&F
Time of tuning in Daily, Only Mornings,Only Night etc
Loyalists / Switchers Fans of a particular station / RJ , Random
End users’
classification
By SOHAIL SAYANI 24

25. Revenue Generation
• Two Customers: Listeners & Advertisers
• For listeners: FREE TO AIR
• Revenue largely only from AD SALES
• Client Ad AgencyRadio Station
• Brand ManagerMedia PlannerSales Team
• Eg: MaricoMadison Oye 104.8 FM
By SOHAIL SAYANI 25

26. By SOHAIL SAYANI 26

27. Radio: Front End Distribution
Sales Revenue from:
• Ad Agencies
• Small Business Owners
• Acquiring ads for non-radio advertising
business
By SOHAIL SAYANI 27

28. RAM (Radio Audience Measurement) Trend
Source: RAM
TG: All 12+
Time Period: Recent 4 weeks [WK39'11 - WK42'11 {25th Sep'11 - 22nd Oct'11}]
Prior 4 weeks [WK35'11 - WK38'11 {28th Aug'11 - 24th Sep'11}]
http://www.exchange4media.com/rame4m/tradio_42_2011.asp
By SOHAIL SAYANI 28

29. RAM (Radio Audience Measurement) Trend
Source: RAM
TG: All 12+
Place of Listening: ALL
Time Period: Recent 4 weeks [WK39'11 - WK42'11 {25th Sep'11 - 22nd Oct'11}]
By SOHAIL SAYANI 29
http://www.exchange4media.com/rame4m/dlife_42_2011.asp

30. •Average Audience in 000's - Average No. of people present in a station at any given quarter
hour during the time period selected
Archana & Salil RJ jeeturaaj
RJ Malishka
Archana & Salil RJ jeeturaaj
RJ Malishka
Love Guru RJ Malishka RJ Sangeeta
Archana & Salil
RJ Mantra RJ Anmol
Archana & Salil By SOHAIL SAYANI 30
RJ jeeturaaj

31. RAM (Radio Audience Measurement) Trend
Source: RAM
Market: Mumbai
Universe (000's) for 2011: 11651
TG: All 12+
Time Period: Recent 4 weeks [WK39'11 - WK42'11 {25th Sep'11 - 22nd Oct'11}]
Prior 4 weeks [WK35'11 - WK38'11 {28th Aug'11 - 24th Sep'11}]]
By SOHAIL SAYANI 31
http://www.exchange4media.com/rame4m/mum_42_2011.asp

32. By SOHAIL SAYANI 32

33. By SOHAIL SAYANI 33

34. • Aircheck India produces independent verification of airplay and provides market
• Live Reports
• Market Share
• Brand and Category Analysis
• Exception Reports
• Song Rotations
By SOHAIL SAYANI 34

35. Customer Acquisition
• Contests
• Outdoor Events
• Outdoor Hoardings
• Website & Social Media Interactions
• Programming Changes
• TV & Newspaper Ads
• In Film Brandings (e.g. Lage Raho..)
By SOHAIL SAYANI 35

36. World Space
By SOHAIL SAYANI 36

37. Customer Acquisition-Barter
• Eg: College festival Partner
• Provide on-air promotion in return for things
like Banners, Stalls, Informal event, OB Jocks
at venue By SOHAIL SAYANI 37

38. Customer Acquisition
One day in the last week
By SOHAIL SAYANI 38

39. By SOHAIL SAYANI 39

40. Customer Acquisition
By SOHAIL SAYANI 40

41. Customer Acquisition
By SOHAIL SAYANI 41

42. By SOHAIL SAYANI 42

43. By SOHAIL SAYANI 43

44. By SOHAIL SAYANI 44

45. Tie-Ups with Brands
By SOHAIL SAYANI 45

46. By SOHAIL SAYANI 46

47. By SOHAIL SAYANI 47

48. Radio: Supply Chain
Music License (Highest Cost for a Radio Stn)
Music created Rights soldLicense given
Eg.
Red Chillies Entern.T-SeriesFever 104 FM
PPL (centralised body for distributing rights)
By SOHAIL SAYANI 48

49. Govt Regulations
• FM Phase-lll Policy
• Total of 839 new FM radio Channels in 294
cities
• Presently it covers 86 cities
• Will result in coverage of all cities with a
population of one lakh and above with private
FM radio channels.
By SOHAIL SAYANI 49

50. Govt Regulations-Phase III
• 1) Radio operators have been permitted carriage of news
bulletins of All India Radio.
• 2) Non-news and current affairs broadcast will be
permissible
• (Broadcast pertaining to the certain categories like
information pertaining to sporting events, traffic and
weather, coverage of cultural events, festivals, coverage of
topics pertaining to examinations, results, admissions,
career counselling, availability of employment
opportunities, public announcements pertaining to civic
amenities like electricity, water supply, natural calamities,
health alerts etc. as provided by the local administration)
By SOHAIL SAYANI 50

51. Govt Regulations-Phase III
• The limit on the ownership of Channels, at the national
level, allocated to an entity has been retained at 15%.
However channels allotted in Jammu & Kashmir, North Eastern States and island territories will be
allowed over and above the 15% national limit to incentivise the bidding for channels in such areas;
• Private operators have been allowed to own more
than one channel but not more than 40% of the total
channels in a city subject to a minimum of three
different operators in the city.
• FDI+FII limit in a private FM radio broadcasting
company has been increased from 20% to 26%
By SOHAIL SAYANI 51

52. Govt Regulations-Phase III
• A choice is proposed to be given to the private
FM broadcasters to choose any agency other
than BECIL for construction of common
transmission infrastructure within a period of 3
months of issuance of LOI failing which BECIL will
automatically become the system integrator and
set up co-location facilities and CTI.
• Special incentives for North East (NE) Region and
Jammu & Kashmir (J&K) and Island territories
By SOHAIL SAYANI 52

53. 8 December 2011, TRAI releases
consultation paper
• With A and A+ cities demanding more FM
channel even after the announcement of the
Phase III guidelines, the Telecom Regulatory
Authority of India (Trai) has sought the
opinion of stakeholders whether it would be
acceptable if the minimum channel spacing
within a license service area can reduced from
the current level of 800 KHz. ( 0.8 MHz)
• Largely a Technical Paper
91.1 92.7 93.5 94.3 By SOHAIL SAYANI 104 104.8 53

54. Total FM channels in New York City: 44
By SOHAIL SAYANI 54

55. Total FM channels in London: 42
By SOHAIL SAYANI 55

56. By SOHAIL SAYANI 56

57. By SOHAIL SAYANI 57

58. By SOHAIL SAYANI 58

59. Community Radio
By SOHAIL SAYANI 59

60. Community Radio
The Supreme Court of India ruled in its judgment of February 1995
that "airwaves are public property”
Anna University India's first campus 'community' radio, launched on 1
February 2004
Educational Institutions,NGOs,Civil society organizations
Aimed at covering an area of 5-10km radius.
Mumbai:- 105.6 Gyan Vani (SNDT), 107.8 Radio MUST (M.U.) ,90.8
Jago Mumbai
Well Known Colleges with CampusRadio: MICA Vaani ,SIMCast , IIT-B...
TOTAL FM stations (including Community Radio) in India: 571 [www.asiawaves.net]
By SOHAIL SAYANI 60

61. Community Radio
• Effective Radiated Power (ERP) specified is 100
W. However, in special cases, UPTO 250 Watt
ERP can be considered subject to conditions laid
down in the guidelines
• E.g. :
• 91.1 MHz 20 kW Radio City
• 90.8 MHz 0.05 kW Jago Mumbai
• Problem faced by CRs in Mumbai
By SOHAIL SAYANI 61

62. Community Radio
What type of programs can be broadcast on Community Radio?
• The Programmes of Community Radio should be of immediate relevance
to the community and focus on issues relating to education, health,
environment, and agriculture and rural and community development.
• At least 50% of content shall be generated with the participation of the
local community, for which the station has been set up.
• Transmission of sponsored programmes shall not be permitted except
those sponsored by Central & State Govts. and other organizations to
broadcast public interest information.
• The CR shall not broadcast any programmes which relate to news and
current affairs and are otherwise political in nature. The details about
content regulation may be seen in the policy guidelines
By SOHAIL SAYANI 62

63. Community Radio
Can Community Radio Stations air
commercials?
• Limited advertising and announcements
relating to local events, local business and
services and employment opportunities shall
be allowed. The maximum duration for such
advertising will be restricted to five minutes
per hour of broadcast.
By SOHAIL SAYANI 63

64. Some MAJOR insights from Primary Research
• “While Commuting” was a frequent response
(contradicting RAM results)
• Many among youth started radio listening
habit because of FM in mobiles
• “Songs” matter the most
• Many find “ads” to be a pain
By SOHAIL SAYANI 64

65. Survey
90
Responses
Ages……
By SOHAIL SAYANI 65

66. Survey
• 90 responses
By SOHAIL SAYANI 66

67. Survey
B.Com 11 12%
B.E. 23 26%
• 90 responses B.Sc. 9 10%
BMM 2 2%
BMS 2 2%
BA 11 12%
MBA/M 12 13%
MS
MBBS/m 4 4%
edical
Diploma 0 0%
other PG 16 18%
By SOHAIL SAYANI 67

68. Need Gaps & innovative ideas for
opportunities
• A major Painpoint of listeners
is Commecials !!!
• A new Ad-Free Radio!!!
• Downside:
• No revenue for Radio Stations
• Listeners will not be keen to Pay subscription fee
By SOHAIL SAYANI 68

69. • Another painpoint is the chatter & bak-bak on
Radio
• Create a NO- TALK , music only radio
• A better version:
• NO-TALK.
• Only FEW ads.
• Airtime sold at a PREMIUM rate
• since ads will be very few
• Ads after 4 Before Now
12 mins ads per hour 5 mins ads per hour
songs. Rs.600 per 10 sec Rs.1300 per 10 sec
By SOHAIL SAYANI 69

70. • What
do you
wish
radio
to be
like?
By SOHAIL SAYANI 70

71. Comedy Radio
(with songs of course!)
By SOHAIL SAYANI 71

72. Restaurant Idea
By SOHAIL SAYANI 72

73. Restaurant Idea
• Gap: Music mostly not of customers’ choice
• After taking order,waiter gives Music menu
• Music played in restaurant by customer choice
• Dedications
included too
By SOHAIL SAYANI 73

74. Need Gaps & Innovative Ideas:
1) Mirchi DJ Service
By SOHAIL SAYANI 74

75. Mirchi DJ Service
• Gap Identified: Common man’s aspiration to
dance to DJs.Deejays getting popular . No station
currently employs this concept
• Getting DJ parties to the aam aadmi also
• Adding another Dimension to Audio Medium-
Involving ONE MORE SENSE
• Weddings/ Small Parties / Corporate Events /
Local Functions/
Ganesh Utsav /
Navratri
By SOHAIL SAYANI 75

76. Mirchi DJ Service
Wedding Function
By SOHAIL SAYANI 76

77. Mirchi DJ Service
• Radio Station has to tie up with local DJs,
Sound System & Event organizers
• Simply instruct the DJ to play short Station
JINGLES in between songs
• Branding & Logo on equipment & Banners
By SOHAIL SAYANI 77

78. In House Retail store radio
• Not necessarily live,can be Prerecorded
• No talk necessary
• Simple modification:
• Playing songs as
usual ,
but with
Station Jingles
in between
By SOHAIL SAYANI 78

79. • Survey
response:
• What would
you like as
prizes?
By SOHAIL SAYANI 79

80. Radio’s Movie Club for College
students
• Need Gap: Low radio in media-pie !
• Tie up with Producers/ Cinema Halls
• First day first MORNING show : FREE tickets
on for Loyal listeners
• on College ID cards
By SOHAIL SAYANI 80

81. By SOHAIL SAYANI 81

82. Open Mic Events
• Gap identification &
Opportunity:
• After one finishes
college ,an aam
aadmi does not really have a chance
or a platform to do something on stage
• The Idea: Organising a monthly
“Open Mic” event at a venue
like an open air restaurant
By SOHAIL SAYANI 82

83. Open Mic : Detailed concept
• RJs announce on air about a monthly event
organised by the Radio Station that allows
them to perform their original work in front of
an informal audience for 2 or 3 minutes
By SOHAIL SAYANI 83

84. Open Mic : Detailed concept
• E.g. poems, dance,song, mimicry, shayari, limerics, or just
about anything
• A platform for showcase of talent; or …….the lack of it !!
• A casual café setting ;
not a “stage”
• Performers who get a good
applaud from the audience get
a goody bag and a song dedication
on air
• Fixed venue every month
• (e.g. First Saturday evening
every month)
By SOHAIL SAYANI 84

85. Open Mic
• Purpose: To let people express their creativity or to bring out the
performer in them. Encourage people to write/create their own &
original piece of work
• Benefits:
• Radio is a medium which exercises
only one of the 5 senses
• This initiative can add another
dimension to it
• Listeners can meet their favorite RJs
in person
• Listeners can meet up and interact
with other radio lovers
• Will Create a community of radio lovers
• Better involvement of the listener
in his life
By SOHAIL SAYANI 85

86. Open mic…….
What generally do you do while listening to
radio? (select not more than two)
By SOHAIL SAYANI
Socialising ! 86

87. What is your
favorite
type of
music?
By SOHAIL SAYANI 87

88. Niche TG
• Only major station with International Music
• Launched in 2006 in Bangalore
• Second station in Goa around 2009
• Delhi has a station Hit 95 FM with mainly plays eng music
By SOHAIL SAYANI 88

89. Upcoming Trends in the sector
• From Feb 2012, Mumbai will have an ENGlish
private FM station
• Radio One going Niche (NEED GAP)
• Focusing English Speaking Indians,Intnl Feel
• Launched as Go 92.5 Fm 2003,was english &
semi-eng for 3 yrs.Switched to mass market.
• Now back to english
By SOHAIL SAYANI 89

90. Upcoming Trends in the sector
• Metros to have 9 private stations
• Multi freq permitted, so diverse content
• More traffic, more radio listening !
• More mobiles,more FM tuning in !
By SOHAIL SAYANI 90

91. • Radio is not just on FM/AM etc, but
PODCASTING too (Prerecorded radio shows)
• What “commuting/travelling” is to FM RADIO
• “Net Surfing on PC” is to “Net Radio”
By SOHAIL SAYANI 91

92. • Have you ever heard Internet Radio?
• Yes49(54%) no(41)46%
• How often do u listen to Internet Radio?
•
By SOHAIL SAYANI 92

93. Web Radio & Artist radio
love u for ths
By SOHAIL SAYANI 93

94. Community Radio & Campus Radio
Low power FM / WebRadio…. Promoting LOCAL talent
By SOHAIL SAYANI 94

95. References
• Radio.about.com
• WikiPedia
• Asiawaves.net
• Websites of Indian Radio Stations
• Radiotime.com
• Afaqs.com / exchange4media.com
• Officials from FM Stations
• My Contact: sohail@radio.fm
• http://in.linkedin.com/in/sohailsayani
• www.facebook.com/RJSoh
• www.facebook.com/RJSohailsayani
• www.twitter.com/ToMainKyaNachun
By SOHAIL SAYANI 95