FM Phase II expansion: HT Music saved Rs 154 cr in Mumbai due to revenue sharing regime
With the first round of bidding for Phase II expansion of FM Radio for Category A+ and A cities out in the open, some interesting calculations reveal that HT Music, the highest bidder amongst A+ category cities, might just have saved a whopping Rs 154 cr as compared to the highest bidder in Phase I.

With the first round of bidding for Phase II expansion of FM Radio for Category A+ and A cities out in the open, some interesting calculations reveal that HT Music, the highest bidder amongst A+ category cities, might just have saved a whopping Rs 154 cr as compared to the highest bidder in Phase I, thanks to the new government policy of migrating to the revenue sharing regime from the erstwhile licence fee regime.
Under the new revenue sharing regime, the permission holder will have to pay an annual fee to the government at the rate of 4 per cent of gross revenue for each year or at the rate of 10 per cent of the Reserve One Time Entry Fee (OTEF) limit for the concerned city, whichever is higher.
Using the later formula, when calculated for Mumbai, which saw the highest bidding by HT Music (Rs 35 crore), the players in Mumbai will now have to pay a minimum of Rs 87.5 lakh per year, which is 10 per cent of Reserve OTEF. Reserve OTEF is explained as one-fourth of the highest successful valid financial bid for the city, which is Rs 8.75 crore for Mumbai with the highest bid being Rs 35 crore by HT Music. Calculated along with the yearly OTEF, that is, Rs 3.5 crore, HT Music would be paying a minimum of around Rs 4.38 crore per year besides the service tax. Thus, in a 10-year period for which the licence is obtained, HT Music will be paying a minimum of around Rs 44 crore sans the service tax.
In the Phase I expansion of private FM Radio, the highest bidder in Mumbai paid Rs 9.75 crore for a one-year period. With the figure escalating at 15 per cent each year as per the licence fee regime, the highest bidder would have paid a whopping Rs 198 crore by the end of 10 years.
But thanks to the revenue sharing regime, the current highest bidder would be paying a minimum of around Rs 44 crore for 10 years. Thus, the highest bidder of Phase II expansion, HT Music, is saving around Rs 154 crore over the highest bidder in Phase I, only because of the revenue sharing regime. Though this figure may come down to an extent as the calculation is based on the Reserve OTEF formula and service tax is excluded, still there is no doubt about the substantial gain made by the new players due to the policy change.
Similarly, in Delhi the last time highest bidder with Rs 7.12 crore would have paid Rs 145 crore by the end of 10 years, whereas the highest bidder of Phase II in Delhi, Radio Mid Day with Rs 31.4 crore, would be paying a minimum of Rs 40 crore, including the 10 per cent of Reserve OTEF by the end of the 10-year licence period, thus making a saving of around Rs 105 crore than the highest bidder of Phase I in Delhi.
But an important question that remains is whether small players could sustain the competition. In Mumbai, each player has to pay a minimum of Rs 87 lakh as annual fee, in Delhi it stands at Rs 78.5 lakh, while for Bangalore it is Rs 54 lakh.
“Of course, they can,” said Nisha Narayanan, Media Consultant and former Programme Director, Radio City, “This is quite affordable even if the market leader may command around 50-60 per cent of the ad revenue in a particular city. With the advertising market for radio expected to surge at around 8 per cent, the situation looks bright for the players.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp