FM players prep for expansion; ambiguity over license renewals remains
Even as some radio operators look to find a solution to expiring licenses, an issue currently cloaked in ambiguity, the radio sector is bullish about expansion into Tier 3 cities

As the much-delayed Phase III expansion moves ever closer, FM players are busy preparing for the next growth phase of radio in the country. However, for a few of the larger players like Radio One, Radio Mirchi, RED FM, one key problem that still remains before they start thinking about expansion, is the extension of current licenses, which will start expiring from March 31, 2015.
“It is very difficult to plan without any clarity. The first priority is completing the auction and solving the license extension issue,” said Nisha Narayanan, COO of RED FM, when asked about this issue.
Operators and government officials are busy discussing alternatives just in case the issue is not resolved. Options like giving an extension to the expiring licenses or holding the auctions for cities whose licenses are expiring first are currently being talked about said people familiar with the solution.
“No bidding can be successful unless these concerns of extension are addressed. The ministry has made a lot of promises that need to see the light of day. If this is done players will be bullish about future business and will bid freely and positively. Protecting existing business is more important before funding further expansion,” opined Vineet Singh Hukmani, MD of Radio One.
However, this is not delaying FM operators from getting their strategy and finances in order as they prepare for the auctions. With Phase III, FM will now extend to even smaller towns and cities and this will also have an impact on the expansion strategy. It is fair to question how much good business sense will such small cities make and what the response from local advertisers and the audience will be to the medium.
FM stations feel that their experience with Phase I and Phase II will serve them in good stead.
“Seven years back when we launched 17 stations only 2 of them had previous exposure to FM radio. We might have been nervous back then but we now have enough experience about going to small and new markets,” said Harrish Bhatia, CEO of MY FM. He, however, mentioned that a lot also rides on the pricing that will be set by the government on these Tier 3 towns as a prohibitive price could make the business less lucrative.
Hitesh Sharma, Executive President for ENIL, which runs Radio Mirchi, agreed with the notion that evangelization would not be a problem as the experience garnered over the past 13 years would help the radio industry. He compared it with print, another medium that can be considered regional. “To launch a radio station in a new market brings similar challenges in terms of advertisers and audience,” he said.
The thing to keep in mind is, according to Narayanan, that it will be more a case of concept selling, rather than inventory selling. “In some cities we also have to contend with listeners who are not in the habit of listening to radio. So it is not only about advertisers but also about listeners. It usually takes 2-3 years to warm up to a new medium. We have seen this earlier and we might see it again,” she said.
With frequencies in the metros expected to be limited and expensive, we could see the frequencies in the smaller towns be of more strategic importance to radio operators. Even if, as operators feel, it might take a couple of years to see returns, it will still be a worthwhile investment, especially since the license period has now been extended to 15 years. Bhatia also suggested that the government could introduce a deferred payment plan, similar to what is seen in telecom space, for the auctions as it would help the radio business.
“We expect intense competition in bidding between the top three networks to retain/gain network dominance. Large national advertisers are focusing on Tier 2 and 3 markets. Local advertisers are adding to the list on a daily basis. Government spends in those markets are also growing. The cost of small cities is very less and with networking being allowed break even will be very quick,” opined Hukmani.
Radio advertising constitutes around 5% of the total ad spend pie and increasing penetration of FM into the Indian hinterland will allow the industry to grow at a much faster rate. No wonder then that FM operators are looking at Phase III as an opportunity to multiply business.
As Apurva Purohit, CEO of Radio City puts it, “Why have we not become a 10% medium? It is because we are not available in 70% of the country. What FM first needs is an expansion. In the digital era where the internet is available across the world, 90 cities (the number of cities FM is currently available in India) seem insignificant. I think with Phase III, FM should have opened up to the length and breadth of the country. We should have been talking about Phase IV right now.”
Things might have not exactly going the way of FM radio in recent years but operators are hopeful that Phase III could be used as a stepping stone to bring FM to cities across the country in the near future.
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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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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
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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