Copyright amendment a shocker, but smaller FM stations resort to less talk for survival
The music royalty issue continues to worry FM stations, and the recent proposal to amend the Copyright Act is an additional worry, especially for small town FM stations. exchange4media spoke to some FM radio players to find out how small town FM stations are dealing with the unending music royalty issue and whether the recent proposals of the Copyright Amendment Act have altered their Phase III plans.
The music royalty issue continues to worry FM stations, especially the smaller FM stations or those in small towns, and going by some of the industry players, the recent proposal to amend the Copyright Act gives unfair powers to the music societies to fix tariffs and is also said to have been made to the effect that till the time the compulsory licenses are granted by the Copyright Board for airing the contents, (which generally takes a very long period of eight to ten years), the broadcaster would be required to pay the amount demanded by Copyright Societies, owners, lyricists and music companies which is not seen in good light by broadcasters. The fear is also that this amendment will only allow the music industry to demand more music royalty.
The radio industry alone is estimated to pay as much as around Rs 100 crore a year as per the copyright board order which constitutes around 15-18 per cent of the revenues of the FM Radio operators while in case of smaller cities they are nearly 70- 80 per cent of the revenues and in some cases higher than the revenue generated.
What is also interesting to note is that small town FM stations are increasingly resorting to less music by including audio plays, guest talks, involving more listeners and other fillers which is seen necessary for survival. Tomato FM and Radio Choklate for instance have taken this route.
exchange4media spoke to some industry players to find out how small town FM stations are dealing with the unending music royalty issue and whether the recent proposals of the Copyright Amendment Act have altered their Phase III plans.
There is a limit for sustainability
Harrish M Bhatia, COO, My FM (Synergy Media Entertainment Ltd), explained, “The radio industry alone pays out as much as about Rs 100 crore a year as per the Copyright Board order, which constitutes around 15-18 per cent of the revenues of the FM radio operators, while in case of smaller cities, they are nearly 70-80 per cent of the revenues and in some cases higher than the revenue generated. This makes the FM business unviable. Thus, the proposed Amendment would add to the woes of the radio industry, especially to those operating at smaller stations.”
Naval Toshniwal, CEO, Tomato FM, added here, “We were hoping for some positive outcome for the music royalty issue. Rather than taking us a step ahead, this proposal has now put us ten steps behind, as a result, the IPRS will again come into the picture and they would emerge stronger because now they have an amendment in their favour. There is a limit for small town FM stations to sustain for probably another year, but what about the future?”
“There is no revenue potential in small towns, where the royalties paid by FM stations in small towns are the same as what the FM stations are paying in the metros, the rates are not differential. So, there has to be some amount of rationalisation which has not happened, and rather this has taken the radio industry on a backfoot altogether,” he further said.
How they deal with this
Monica Nayyar Patnaik, Director, Eastern Media Ltd, noted, “Some of the steps taken to reduce the music content is by filling in a lot of sparklers, for instance, there are audio plays which are aired for one hour, and for every hour there are four to five sparklers of one minute each, then there are a lot of guest shows and weekend programmes, for example, audio plays like ‘Choklate Rang Manch’ are aired for one hour. We have to resort to these things otherwise it would be difficult to survive.”
Toshniwal pointed out, “We have already started contemplating on different formats now other than music format, and if we have to survive, we will have to play less music and if we have to play less music, then we need to figure out ways to keep listeners hooked on to the FM station. Thus, less music, more involvement of listeners will be the key. In the last three months, Tomato FM has already cut down its music percentage by almost 20 per cent, so we have got in more characters, more segments, and we do a lot more outdoor broadcasting. So, our on-air time for radio jockeys have gone up, we have begun to take a lot many people on air so that we play less music on air.”
On a different note
On the other hand, Prashant Panday, CEO, ENIL, explained, “I think the Amendments to the Copyright Act are long overdue. We obviously don’t know for a fact what the proposals are, but assuming that they will be contemporary, we support the Amendments. I am hoping that artists are protected in the Amendments. They are the reason for the music industry to exist and we must do all to encourage them and monetarily support them. The music companies must share their royalties with the artists.”
“We also hope that the amended Act will make life a little easier for broadcasters. For example, we are made to run from pillar to post seeking licenses to broadcast. I hope that can be avoided in the future. I also hope the lopsided power equation in favour of the music industry is corrected. We operate under a license from the Government of India, how can we be treated in such a shoddy manner? We are not infringers. We pay more than Rs 100 crore to the music industry, how can we be infringers? I also hope the Copyright Board can be made a permanent body just like the TDSAT. Today, music and movie content is used widely and we need a judicial authority that can resolve litigation quickly. Overall, I look forward to the Amendments to bring fairness to the entire system. Royalty rates become reasonable, music companies pay artists, and everyone gains,” Panday added.
According to Bhatia, “The Indian Broadcasting Foundation (IBF) has criticised the Human Resource and Development (HRD) Ministry’s proposed Amendments to the Copyright Act 1957. Though we are pro-artist and want that the artist should benefit for the work done by him, but the proposed Amendment would not help the artist as such and is more beneficial to the music companies only, thus we will protest against it and we will talk to our members in IBF and AROI on our further move. Also, as the Copyright Board is already conducting the hearings for royalty disputes, it is here that we can try to convince the Ministry of HRD to pass appropriate instructions to the Board to expedite the proceedings or at least to fix a timeframe for completion of proceedings.”
The impact on FM Phase III
Toshniwal of Tomato FM admitted, “It will affect our Phase III plans. Even if there is bidding, the value will drastically go down this time, which will be a loss for the Government ultimately. Thus, we expect the Government to take us seriously and find a solution to the problem.”
Bhatia of My FM added here, “The current royalty rates are very steep, especially for stations in the smaller markets (BCD), which makes it an unviable business proposition. If the proposed Amendment is approved and is enforced, we are going to see a huge dip in enthusiasm levels for Phase III bidding as the revenues generated are already very less and bidding for those stations means incurring huge capital expenses, which after implementation of the proposed Amendment, would become more difficult to realise. Today, even existing players are finding it difficult to consolidate operations.”
Patnaik stated, “We are a state player, and for the upliftment of the state and to maintain the pride of the state, we will participate in Phase III.”
As compared to international markets, where radio stations pay between 2 per cent and 4 per cent of revenues as music royalties, the demand for music royalty in India is around 30 per cent. What is also seen as an urgent need by FM players is for proper regulation of Copyright Societies and their operations and the need for a single body representing the music industry to ensure that the royalty paid reaches the correct IPR owner.
“We are seeking a gradual increase from 1 per cent of revenues to 4 per cent as radio listenership improves. Can the amendments at least nudge the collection societies in this direction?” asked ENIL’s Panday.
Also read:
FM players fear death knell for biz if music royalty issue not resolved soon
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TRAI releases Consultation Paper on reserve price for auction of FM radio channels
The regulatory body has asked for written comments on the consultation paper from the stakeholders by November 6
The Telecom Regulatory Authority of India (TRAI) has released a Consultation Paper on "Reserve Price for auction of FM Radio channels".
The Ministry of Information and Broadcasting (MIB) sent a reference dated August 22, seeking recommendations of TRAI on reserve prices for 283 cities (260 new + 23 existing) under FM Phase-Ill Policy.
Accordingly, this Consultation Paper has been prepared to seek the comments and views of the stakeholders on issues related to estimation of the reserve prices for auction of FM Radio channels.
As part of the consultative process, the Consultation Paper has been uploaded on the TRAI website.
The regulatory body has asked for written comments on the consultation paper from the stakeholders by November 6. Counter-comments, if any, may be submitted by November 13, the paper said.
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ShareRadio Mango Nerolac ‘Pulikkali’ celebrates the essence of Onam
Radio Mango in association with Nerolac Healthy Home Paints flags off an Onam folklore-themed roadshow in Kerala
Radio Mango in association with Nerolac Healthy Home Paints launched ‘Pulikkali’, an Onam folklore-themed state-wide roadshow that resonates with the ideology of unity among all people, regardless of their caste, colour or religion.
The road show brings to life the most vibrant and eye-catching ritual of Onam, the Pulikkali (Tiger Dance). The campaign also fondly recalls the popular Onam folk song ‘Maveli Naadu Vaneedum Kaalam, Manushar Ellaarum Onnu Poley.’
It is designed around the ancient folklore of the golden reign of King Mahabali when there was no discrimination on the basis of caste or class and there was neither crime, nor corruption.
The dynamic crew of entertainers, dressed as Pulis (Tigers) accompanied by Chenda Melam (traditional percussion) artists will travel across Kerala for 15 days as part of the campaign to emphasise the fact that no matter what, we all are one and whatever the colour, we must unite to make this Onam colourful.
The flag off to the ‘Pulikkali’ roadshow was conducted in Kochi by Malayalam actor Saiju Kurup in the presence of Ravindran Nair, Programme Director, Radio Mango, and Rajesh C., Kerala Regional Sales Manager, Nerolac Healthy Home Paints, at Malayala Manorama’s Panampilly Nagar office.
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PM Modi lauds Fever FM’s #PlasticSeBreakUp initiative
In a tweet, the Prime Minister congratulated Fever FM for its innovative campaign to ensure reduced usage of single-use plastic
As part of the Fever Voice of Change CSR initiative, Fever FM launched the ‘#PlasticSeBreakUp’ campaign to make India free from single-use plastic.
Drawing inspiration from Prime Minister Narendra Modi’s message this Independence Day, the initiative urges all shopkeepers to do away with single use plastic bags.
PM Modi too tweeted in support of Fever FM’s Bharat Positive initiative. He said ‘I congratulate Fever FM for their innovative campaign to ensure reduced usage of single use plastic. I urge shopkeepers to take part in this campaign with vigour. Such efforts will add valuable momentum to the Swachh Bharat Mission.’
I congratulate Fever FM for their innovative campaign to ensure reduced usage of single use plastic. I urge shopkeepers to take part in this campaign with vigour. Such efforts will add valuable momentum to the Swachh Bharat Mission! @FeverFMOfficial
— Narendra Modi (@narendramodi) September 12, 2019
Talking about the initiative, Harshad Jain, CEO – Radio and Entertainment, HT Media Ltd and Next Mediaworks Ltd., said, “We are extremely grateful to our honourable Prime Minister for his encouragement and appreciation of our latest Bharat Positive campaign, and assure him of our unending support. This encouragement gives us motivation to continue our work with greater zeal to bring about a positive change in the country. We are committed, with our latest campaign against single use plastic, to drive the citizens towards a plastic free India. Bharat Positive is a Fever Voice of Change (FVOC) initiative, the biggest CSR in the history or radio.”
Gautam Gambhir, cricketer, MP and face of Bharat Positive initiative, said, “Credit to team Fever and the listeners of the radio station. PM sir noticing the campaign is no mean feat, it just gives a shot in the arm. Of course when Mr Modi talks, the world listens. There’s substance in his thoughts and him putting the weight behind ‘Plastic Se Breakup’ campaign will only galvanise the whole movement. The fact that his following cuts across age groups is another huge plus. Through PM’s support, the youth, the mid-aged and the elderly, everyone will know about this campaign.”
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RED FM's ‘Pride Ki Side’ campaign highlights LGBTQIA + issues
To celebrate the first anniversary of repealing of Section 377, the initiative will provide a platform to share stories and highlight challenges faced by the community
93.5 RED FM has launched a brand-new initiative – ‘Pride Ki Side’ to celebrate the first anniversary of repealing of Section 377. The initiative will provide a platform to share stories and highlight the various challenges faced by LGBTQIA+. The concept of this campaign majorly aims at educating the masses about the pride community.
RED FM has joined hands with Naz Foundation and Breaking Barriers – a project by students of Tagore International School, Vasant Vihar, Delhi, to sensitise the society at the grass root level.
RED FM is targeting the children at a young age so that they become compassionate and kinder towards LGBTQIA+ children.
To support this belief, various workshops are being conducted in schools to provide a safe and respectful learning environment for everyone. Trained and certified counsellors accompanied by RED FM’s team and RJs are conducting the workshops.
Speaking about this campaign, Nisha Narayanan, COO and Director, RED FM and Magic FM, said, “Looking at the status of LGBTQIA+ community in India, it is high-time we start educating the people about them. Everyone should have the right to openly appreciate and practice who they are and love who they want. At RED FM, we believe in supporting this movement through our humble initiative ‘Pride Ki Side’. We want to raise awareness in the public about the challenges faced by them. We hope more people will come forward, share stories and help empower each other. Our vision is to create an inclusive environment and encourage our audience to adopt a progressive and compassionate outlook towards the LGBTQIA+ community.”
Commenting on the association, Anjali Gopalan, Founder and Executive Director, The Naz Foundation Trust said, “I am so happy that RED FM has taken this step to highlight LGBTQIA + issues. The Naz Foundation (India) Trust is proud to be part of this journey.”
To ensure maximum outreach, RED FM has also introduced a daily special morning show on their radio channel with a counsellor. This engaging and interactive format of the show will address queries and problems of the community who face bullying, hatred and discrimination at institutes or workplace.
Besides this, RED FM has also invited a well-known LGBTQIA+ influencer at their studio who will share stories of courage in dealing with cyber trolls, verbal harassment, and how they moved-ahead and dealt with such situations.
The campaign, which began September 4, runs till September 13.
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Dia Mirza supports BIG FM’s green Ganesha initiative
To spread awareness about using eco-friendly Ganesha idols, BIG FM held a two-week-long contest and 15 winners were felicitated with a Tree Ganesha by Mirza
For the 12 th year in a row, BIG FM has brought to light the importance of celebrating festivities in an eco-friendly way through Ramky’s BIG Green Ganesha.
The initiative promotes the use of eco-friendly Ganesha idols and its celebration with minimum environmental damage. RJ Rani, the face of Ramky’s BIG Green Ganesha initiative, hosted the event, which was graced by actress Dia Mirza, Sujiv Nair from Ramky Enviro Engineers Ltd and Ram Kharpuriya, Director - Greenland Farms.
15 lucky contest-winning listeners were felicitated with a Tree Ganesha by Mirza, at the BIG FM office.
To spread awareness about using eco-friendly Ganesh idols, a two-week-long contest was held and it resulted in widespread response from listeners across Mumbai. BIG FM Mumbai associated with Tree Ganesha as they create eco-friendly idols which are made of natural soil and also melts completely after immersion in water bodies as compared to non-biodegradable options that create pollution.
Commenting on the initiative, a BIG FM spokesperson stated, “BIG FM has always tried to bring about a positive change in society. BIG Green Ganesha has been our on-going initiative for the past twelve years which is amplified through on-air and digital channels. We at BIG FM believe in ‘Change starts with you’ and through this campaign tried to raise awareness on the environment pollution created with non-biodegradable idols. The campaign has been very successful till date and we are happy and proud that we as a medium can offer our listeners entertainment with purpose.”
Nair, Chief Human Resources Officer of Ramky Enviro Engineers Ltd, commented, “The Green Ganesha initiative is our contribution to the environment. Being in the space where we closely experience the hazards that affect the environment, we are trying to make Green Ganesha an awareness campaign and save the environment from the use of harmful products. Through this we urge the people to acknowledge an environment-friendly celebration by adopting the use of eco-friendly products.”
Mirza added, “I am very happy to be here. Moreover, I am extremely grateful to BIG FM for this campaign that has been raising awareness over the last 12 years. For the past few years, I have been associating with beach clean ups post the Ganpati Visarjan and it’s very disheartening to see the remains of the idols washed back ashore. Three years ago, Dattadri (Kothur of Tree Ganesha) and I made one of these tree Ganeshas together and it was a beautiful feeling. The happiness you feel while doing something for the better good just elates you to a whole new level. I urge more people to opt for eco friendlier methods, for not just their Ganpati celebrations, but in their day-to-day activities as well.”
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Radio Adex: Ad volume sees 8% decrease in indexed growth in Q2 2019
Paytm.com continues to be the top brand to advertise in the services sector in the first half of both 2018 and 2019
The recent Radio Adex report for ad volumes in the medium for the first and second quarter of 2019 shows 8 per cent decrease in indexed growth.
In the first quarter (Jan-March), the service sector had 31 per cent share which came down to 26 per cent in the second quarter (April-June). The retail sector saw increased share in the second quarter. From 8 per cent in the first quarter, the ad volumes from the retail sector increased to 11 per cent. This was the time when IPL, General Elections and World Cup were ruling the roost.
Interestingly, Banking/Finance/Investment sector which was one of the top advertising categories in the first quarter with 12 per cent share, doesn’t find a place in the top five super categories in the second quarter. Education makes an entry in the top five list for Q2 with 10 per cent share. Auto jumped from 8 per cent to 10 per cent, while food beverages declined from 10 per cent to 9 per cent.
If we consider the ad volume in Radio for the first half of 2019 vs the first half of 2018, the indexed growth saw a decline by 9 per cent. Services continue to take the maximum share. In 2018, it was 30 per cent share while in 2019, it is 29 per cent share. Retail, Food & Beverages, Banking, Finance and Investment saw similar shares this year as was in 2018. Auto moved from 8 per cent in 2018 to 9 per cent this year.
Paytm.com continues to be the top brand to advertise in the services sector in the first half of both 2018 and 2019. Google Pay takes the next spot this year as compared to Amazon.in in 2018. Google, Cars24, Yahoo Cricket were the other brands which were a part of the top 5 brands in the first half of 2018. This year, Cars24 remained constant while there has been an addition of Hotstar and Phonepe in the list.
In the retail sector, except for Home Centre (Koz), all the brands that advertised on Radio in the first half of 2018 are missing from the top 5 brands list of 2019. While last year there were Great Eastern Trading, Central (Pantaloons), Max Retail, and South India Shopping Mall, in 2019, they are replaced by Alishan, Reliance Trends, The Chennai Silks and Lifestyle. In the Food and Beverages category, the Pan Masala brands continue to make a mark.
The cars category has jumped from 5 per cent to 7 per cent shares on radio, when compared to the first half of 2018 vs the first half of 2019. Properties/Real Estates have the maximum share of 8 per cent in 2019 compared to 9 per cent in 2018.
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FM Tadka goes for makeover with ‘Apni Suno’ campaign
Apart from the new positioning statement, FM Tadka also sports a new logo indicating dialogue within for a positive change
Three months ago, management at the Patrika group decided to go for a makeover of FM Tadka. And just two weeks back, the revamp exercise reached a climax at film studios in Jaipur with RJs all across the country practicing steps for the new jingle video having both an aspirational and inspirational feel to it.
The radio network, spanning six states and 18 cities, started its teaser campaign on August 1 with a mascot named Mr. Mannki who ignited people's minds on the new message hidden in its pose which became quite a hit amongst listeners.
The campaign garnered praise from celebrities across the spectrum. Singers Sukhwinder Singh, Hariharan, Tochi Raina, Aastha Gill, and Hindi film industry stars like Tusshar Kapoor, Mallika Shehrawat, Urvashi Rautela, Sonali Kulkarni, director Nitish Tiwari, Super 30 founder Anand Kumar, comedians Shekhar Suman, Sunil Pal, Raju Shrivastav and sports stars appreciated the concept when it was shared with them during their visits to FM Tadka. The campaign, Apni Suno, talks about making a transformation in life.
“As a country, we have always followed Gandhi ji’s three monkeys, but now the fourth monkey Mr Mannki came with a message- to bring a positive change in your life and to the destiny of the country- Apni Suno. This network philosophy was aptly revealed on Independence Day,” the network said in a statement.
“From students as environment crusaders, young innovators to reality stars from smaller cities- there are many examples of people listening to themselves and carving a new life for themselves. It is this clarion call that FM Tadka is bringing to its listeners and propagating through roadshows, cinema, mall tie ups and artists across the country,” the statement read.
Gaurav S Karrir, the National Programming Head, further reveals, “The prospect of a product change around was quite exciting. We took innovative ways like making Mr Mannki our mascot, mask inserts in newspapers, celeb led Apni Suno life changing stories and using Patrika power in digital, outdoor, print and tv to make people notice the new message of Apni Suno”.
Saurabh Bhandari, National Head Marketing, Patrika Group, who has seen the radio product evolve over the years, applauded team Tadka and shared his vision, saying, “We at Patrika Group always believe to bring change in people’s life. Our endeavour FM Tadka's ‘apni suno’ positioning is yet another step in same direction, there has been a deep study and long research behind this, we are confident listeners and our trade partners will continue their love n support to FM Tadka.”
Apart from a new positioning statement, FM Tadka also sports a new logo indicating dialogue within for a positive change. Shades of blue pointing at freedom of expression. The core TG now is 16-30 with music starting from 2008 and the playlist focused on melody. FM Tadka's flagship Jaipur station now has a new team of RJs making the entire station live with focus on social impact plus technology and sports segments.
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