FM Phase III: Radio players warily eye e-auctions

There are mixed reactions to the e-auctions announced for FM Phase III. While some feel it will kill programming options, others are more optimistic

e4m by Priyanka Nair
Published: Mar 6, 2012 1:10 PM  | 5 min read
FM Phase III: Radio players warily eye e-auctions

The stage is set for the FM Phase III expansion process to commence. Though the Union Cabinet had approved auction of licenses for the third phase on July 7, 2011, no date had been fixed for the same. Now, the Ministry of Information and Broadcasting (MIB) has confirmed that e-auctions for Phase III will be held in June 2012.

The bidding can turn aggressive, particularly in the metros, where more frequencies will open up. The government expects to earn Rs 17.33 billion from auctioning of these radio licenses.

How will it work?

E-auctions of the radio channels will be conducted in batches and number of batches will be decided by MIB, depending on bidders’ response after the auction of the first batch. MIB will appoint an independent expert agency through a transparent selection process, following established procedure, to conduct the e-auctions.

The Ministry will separately issue a detailed information memorandum in due course, enabling the prospective bidders to participate. It will also indicate the cities, reserve prices city-wise, number of channels to be taken up in each batch and other procedures for the e-auction. A Notice Inviting Application (NIA) for participation in the auction(s) will also be issued in due course of time.

The process may look streamlined, but there are various elements that need clarity and transparency.

Industry speaks

Vineet Singh Hukmani, MD and CEO, Radio One, spoke at length about the pros and cons of these e-auctions. He said, “We have always been more than prepared as an industry. However, the two slowdowns that we experienced were beyond our control.”

“One of the pre-conditions the MIB has put before us is the signing of Grant of Permission Agreement (GOPA). Without signing GOPA, one cannot participate in Phase III. It is important to realise that signing of GOPA will allow all existing players to save cost due to networking and bring in more revenue with news (from AIR), current affairs, sports, etc. and will help the players honour their financial commitments to Prasar Bharati and BECIL. Hence, the players will be more confident to bid in Phase III,” he explained while talking of the advantages that e-auction will bring to the table.

On the flip side, Hukmani noted that the second slowdown has implications on the economic environment. A few large players have attempted raising funds for acquisition/expansion and have not yet tasted success. So the question that arises is whether the government is willing to risk Rs 1700 crore expected license fee from Phase III when the environment is not conducive?

Process and criteria pose challenges

Prashant Panday, CEO, Radio Mirchi of ENIL opined that e-auction is the wrong way to go about giving spectrum in any media business, not only radio. He explained that in an e-auction, the final license fee derived is exactly same for all the frequencies that are being auctioned. Because of this, each winning bidder is compelled to offer only the largest programming format, which in the market is contemporary Hindi music.

“If you look at the broadcasters who have started offering English music stations now, they were the ones who paid less license fees in Phase II. This will not be possible in a scenario of e-auctions. Imagine if TV spectrum had to be auctioned, would we have so many niche channels that we have today? With e-auctions, we might as well wish programming options goodbye,” he said.

Hukmani said that any move towards a more transparent process is welcome. However, he shared that the e-auction is just a process. What is the wrong with Phase III policy is the criteria for bidding.

“If bidding begins at the highest bid of the Phase II license and there are only few metro licenses, then a ‘false demand’ is being created for those metros. The only beneficiary of such a decision is the government,” he explained.

Not only is the policy a problem area, the government’s assumption that new players will buy licenses is a big gamble. “New players will need metro licenses to make their play attractive and are currently talking to existing players as it is less risky to acquire those existing players than to set up new businesses with formidable license fees,” said Hukmani.

Hence, existing players are the government’s only bet for investments in Phase III. But again, existing players will not bid high as they have already done so in the past and are still suffering from its repercussions.

The bright side

Rabe T. Iyer, Business Head, Big FM, is optimistic about e-auctions. “We have been anticipating the Phase III expansion for some time now and are gearing up for the same,” he said.

"We have a robust planning process in place to arrive at our strategy for Phase III that will focus on the revenue potential and profitability. We welcome this move and hope for a fair and unbiased e-auction process that will result in great value for all stakeholders,” concluded Iyer.

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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

e4m by exchange4media Staff
Published: Oct 17, 2019 1:19 PM  | 1 min read
TRAI

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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Radio 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

e4m by exchange4media Staff
Published: Sep 13, 2019 6:44 PM  | 1 min read
Radio

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

e4m by exchange4media Staff
Published: Sep 13, 2019 5:46 PM  | 2 min read
Fever FM

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.’

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

e4m by exchange4media Staff
Published: Sep 9, 2019 7:03 PM  | 2 min read
Red FM

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

e4m by exchange4media Staff
Published: Aug 30, 2019 7:06 PM  | 3 min read
Diya 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

e4m by exchange4media Staff
Published: Aug 21, 2019 8:31 AM  | 2 min read
Ad ex Radio

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

e4m by exchage4media staff
Published: Aug 19, 2019 10:53 AM  | 3 min read
FMTadka

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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