FM players fear death knell for biz if music royalty issue not resolved soon
The FM players and music industry are hoping for an amicable resolution to the contentions music royalty issue at the Copyright Board hearing scheduled for July 28, 2009. exchange4media spoke to some industry experts regarding the implications of a verdict in favour of or against the radio industry, and if at all there is a way out.
The FM players and music industry are hoping for an amicable resolution to the contentions music royalty issue at the Copyright Board hearing scheduled for July 28, 2009. exchange4media spoke to some industry experts regarding the implications of a verdict in favour of or against the radio industry, and if at all there is a way out.
The Supreme Court of India, in its judgement dated May 16, 2009, had stated that the Copyright Board was the Constitutional authority to decide on royalty rates for the industry. The Copyright Board hearing is scheduled to commence on July 28, 2009, and both FM players and the music industry are hoping for a fine solution that would eventually stop the bleeding and lead to rapid growth.
Meanwhile, one of the issues that the Association of Radio Operators in India (AROI) had presented to the Ministry of Information and Broadcasting (MIB) early this year was that of music royalties. The non-profit NGO had categorically stated that unless resolved, the radio industry would find it difficult to participate in the FM Phase III bidding.
According to Vipul Pradhan, CEO, Phonographic Performance Ltd (PPL), “Every market has a different business environment or model to deal with. In fact, there are different revenue shares. The business dynamics in India, too, have changed drastically, and this is a time when alternate mediums are emerging rapidly, too, like satellite radio/ television, mobile and, therefore, one has to look at the logic of this market. Whatever the Copyright Board’s verdict will be, we only hope that it will be a fair value that is given to the music owners.”
Industry Speak:
Apurva Purohit, CEO, Radio City, and President of AROI, stated, “In the event the verdict of the Copyright Board is in favour of the FM industry by determining a rate that is practical and viable, it will be a significant upside to us. An adverse verdict would certainly prove to be the death knell for our industry, which apart from providing the cheapest mode of entertainment in a developing country like ours, is also providing employment to over 10,000 people and is also contributing significant amounts to the national exchequer through annual license fees, etc.”
She further said, “Several radio operators are not operating during the night time in many cities, apart from metros due to the current high music royalty rates. An even higher music royalty rate would certainly result in the disappearance of the private FM radio industry in the country.”
Harrish M Bhatia COO, My FM, noted, “A favourable verdict on the music royalty issue can go a long way in developing the nascent radio industry in India, especially in the non-metro cities. Since privatisation of radio began, most radio stations have focused on the metro markets and it was only much later in the second phase that radio moved in to the non-metro markets, where individual stations are still struggling to maintain viability since radio is a new medium and high cost of royalty is being paid.”
“If the radio industry is to develop into a sustainable format, the music royalty issue has to be resolved urgently. If the verdict is negative, commercial viability of some stations in these markets may become an issue and there would be a definite impact on employees. Apart from this, there are several other adverse impacts that need to be considered. The tremendous growth that the industry was witnessing will be hampered and the low costs of advertising that radio offers may have to be revisited as well. The whole industry may witness a downward spiral,” he cautioned.
Ismail Dabhoya, Senior Vice President – Finance and Commercial, Big FM, observed, “The current royalty rates are very steep, especially for stations in the smaller markets (BCD), which makes it an unviable business proposition. Unless sorted, we are going to see a huge dip in enthusiasm levels for Phase III bidding. Today, even existing players are finding it difficult to consolidate operations; in fact, established business groups have surrendered their licenses. Music royalties are significant portion of the stations’ costs and a reduction in this could enhance the future earning capability of the radio industry, and in turn augment the current and future employment opportunities.”
Nishant Mittal, CEO, Radio Misty, explained, “If the Copyright Board’s verdict is in favour of the FM industry and there is a solution, it would bring relief to everyone. There would be further investment and expansion in the FM industry. It should be noted that the FM industry is growing at its pace, and in terms of revenue, we still share a relatively smaller portion than other media forms. The royalty rates should increase gradually and not reach the sky at once.”
He further said, “If the verdict doesn’t go in favour of the FM industry, then we still have to pay high royalty rates, the time is not far where you will see most of the smaller FM stations closing down and surrendering their licenses back to the Government as it is not possible to incur further losses.”
Puja Sharma, Head of Finance and HR, Fever FM, said, “It is a known fact that the radio industry is bleeding, thus making huge losses as music royalties are a considerable expense, and if we could reduce rates, it would have a positive impact on the survival of the industry, but if the verdict is not in favour of the radio industry, then one of the adverse effects could possibly have a direct impact on the employees, leading to FM stations having to retrench their employees.”
The way out:
Purohit of Radio City pointed out, “Apart from the revenue sharing regime, which will ensure gradation across cities, a single body representing the music industry is required to ensure that the royalty paid reaches the correct IPR owner. The FM radio industry is represented by AROI, while there is no such organisation representing the entire music industry in India, which is very unlike the situation in other countries. The MIB and the HRD Ministry has evinced interest in resolution of this dispute, but lot more needs to be done for arriving at a solution of this dispute, which is critical for the survival of the private FM radio industry in the country.”
Bhatia of My FM noted, “It is true that if royalty costs are not reviewed, several contenders for Phase III may shy away from bidding for fear of sustainability issues. The solution to the music royalty issue is to understand primarily that the radio industry and the music industry are, in fact, partners in business and that they shouldn’t be seen as competitors. Music royalties need to be changed from the current situation of fixed costs to branched fees for various market segments and within segments be divided based on format, revenues and listenership.”
Big FM’s Dabhoya, too, stressed on the rationalisation of music royalty costs for the radio industry. “At present, it is not in sync with the revenues being generated, making business unprofitable in several cities. The issue, unless sorted, will only hamper the growth of the industry. The music and radio industries have to grow together and not at the expense of each other,” he affirmed.
Mittal of Radio Misty said, “It would be difficult to participate in Phase III bidding until and unless the royalty issue is solved. It is not practical and also unfair to charge higher royalty fees from the smaller cities, where the revenue share is also very less. It should be noted that maximum bidding in Phase III is at D city towns, and there the revenue source is very limited. The music industry should understand the problem of the FM radio industry and should walk together rather than walking in opposite directions for the betterment of both.”
Also read:
Music royalty issue delays Phase III FM bidding
Music royalty issue: ‘Don’t kill the golden goose’, radio industry tells music industry
Music royalty issue: Music, radio industries urged to ‘shake hands’ and carry on talks
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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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