What sops do you need to expand FM, Ministry asks radio players
22 Dec 2012 6:17 AM IST
The Government said on Friday that it is committed to the expansion of FM radio in far-flung areas of the country and will simultaneously also focus on the transparent e-auction process of Phase III FM radio licensing.
Uday Kumar Varma, Secretary in the Ministry of Information and Broadcasting (I&B), made it clear that the radio sector featured as the top most priority in the radar of the ministry. While addressing industry leaders at the CEOs’ Roundtable on Radio organised by Confederation of Indian Industry (CII), Varma said, ‘We are very positive on the growth of the radio sector and expansion of FM radio in border areas and far flung areas across the country. We will relentlessly pursue the wonderful opportunity of radio as a powerful dissemination mechanism of communication.’
On this occasion, the report on FM Radio in India: Poised for Growth, which has been compiled by CII and Ernst & Young, was released by Varma. According to the report, Phase III of FM radio licensing promises further growth opportunities for the Indian FM radio industry since it covers 294 cities and 839 licenses and is likely to commence by the end of the current financial year.
The report also mentions that India’s private FM radio segment is expected to generate revenue of around Rs 1,400 crore in 2012-13, with 245 private FM stations operating in 86 cities.
According to the study, this sector has ‘been growing at a compounded annual growth rate (CAGR) of 14 per cent. Furthermore, the sector is expected to grow to Rs 2,300 crore at a CAGR of 18 per cent, within three years of Phase III being rolled out.’
‘The report is a compilation of the views of 23 industry stakeholders including radio companies, regulators, music labels, etc. It highlights the need for a speedy implementation of Phase III, through which the radio industry can grow from Rs 1,400 crore to Rs 2,300 crore in three years,’ said Ernst & Young Partner Ashish Pherwani.
According to the report, the key challenges faced by the radio industry today include limited inventories and slow recovery of advertisement effective rates (ERS). ‘Therefore, the need of the hour is for the radio industry is to collaborate and implement a measurement system that supports the growth of the industry,’ it explained.
Establishing an open forum for discussion during the event, Varma asked the members from the radio industry to clearly specify the incentives that would benefit the sector during FM Phase III licensing. ‘Our Ministry is open to all suggestions and we would like to get clear signals from the industry,’ he pointed out.
Reliance Entertainment Chairman Amit Khanna, who heads the CII National Committee on Media and Entertainment, said that the industry should work towards innovation and encourage more diversity of programmes in FM radio stations. He also asked the Ministry to expedite the digitising process of All India Radio’s (AIR) huge archives of classical music folk music heritage.
‘We must expand FM radio stations but there is a dearth of trained professionals and human resource talent in this sector,’ said Khanna.
Radio Mirchi CEO Prashant Panday pointed out that global cities like Colombo and Dubai have more than 30 FM stations while major Indian cities have just seven or eight.
‘We need to grow the channels. We have not allowed the medium to grow,’ said Panday. B A G Networks CMD and AROI President Anuradha Prasad called for a more liberal FM radio policy and steps to make the sector vibrant.
Uday Kumar Varma, Secretary in the Ministry of Information and Broadcasting (I&B), made it clear that the radio sector featured as the top most priority in the radar of the ministry. While addressing industry leaders at the CEOs’ Roundtable on Radio organised by Confederation of Indian Industry (CII), Varma said, ‘We are very positive on the growth of the radio sector and expansion of FM radio in border areas and far flung areas across the country. We will relentlessly pursue the wonderful opportunity of radio as a powerful dissemination mechanism of communication.’
On this occasion, the report on FM Radio in India: Poised for Growth, which has been compiled by CII and Ernst & Young, was released by Varma. According to the report, Phase III of FM radio licensing promises further growth opportunities for the Indian FM radio industry since it covers 294 cities and 839 licenses and is likely to commence by the end of the current financial year.
The report also mentions that India’s private FM radio segment is expected to generate revenue of around Rs 1,400 crore in 2012-13, with 245 private FM stations operating in 86 cities.
According to the study, this sector has ‘been growing at a compounded annual growth rate (CAGR) of 14 per cent. Furthermore, the sector is expected to grow to Rs 2,300 crore at a CAGR of 18 per cent, within three years of Phase III being rolled out.’
‘The report is a compilation of the views of 23 industry stakeholders including radio companies, regulators, music labels, etc. It highlights the need for a speedy implementation of Phase III, through which the radio industry can grow from Rs 1,400 crore to Rs 2,300 crore in three years,’ said Ernst & Young Partner Ashish Pherwani.
According to the report, the key challenges faced by the radio industry today include limited inventories and slow recovery of advertisement effective rates (ERS). ‘Therefore, the need of the hour is for the radio industry is to collaborate and implement a measurement system that supports the growth of the industry,’ it explained.
Establishing an open forum for discussion during the event, Varma asked the members from the radio industry to clearly specify the incentives that would benefit the sector during FM Phase III licensing. ‘Our Ministry is open to all suggestions and we would like to get clear signals from the industry,’ he pointed out.
Reliance Entertainment Chairman Amit Khanna, who heads the CII National Committee on Media and Entertainment, said that the industry should work towards innovation and encourage more diversity of programmes in FM radio stations. He also asked the Ministry to expedite the digitising process of All India Radio’s (AIR) huge archives of classical music folk music heritage.
‘We must expand FM radio stations but there is a dearth of trained professionals and human resource talent in this sector,’ said Khanna.
Radio Mirchi CEO Prashant Panday pointed out that global cities like Colombo and Dubai have more than 30 FM stations while major Indian cities have just seven or eight.
‘We need to grow the channels. We have not allowed the medium to grow,’ said Panday. B A G Networks CMD and AROI President Anuradha Prasad called for a more liberal FM radio policy and steps to make the sector vibrant.
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