Time is ripe for FM Phase III rollout, but is the industry ready?

It’s now just a matter of time when the Government will announce its FM Phase III policies. The Phase III rollout will see the addition of another 700 FM stations to the already existing 200 private FM stations in India. In the meantime, the Radio Investors Forum had recently met I&B Minister Ambika Soni and communicated the serious issues facing the industry and also regarding the FM Phase III policy. exchange4media finds out from industry players whether the industry is actually ready for the Phase III rollout.

e4m by Robin Thomas
Published: Apr 2, 2010 8:22 AM  | 7 min read
Time is ripe for FM Phase III rollout, but is the industry ready?

It’s now just a matter of time when the Government will announce its FM Phase III policies. The Phase III rollout will see the addition of another 700 FM stations to the already existing 200 private FM stations in India. Phase III is expected to fuel the growth of the Indian radio industry by allowing broadcasters to expand their footprint and offer advertisers greater reach across the country. While the time may be ripe for FM phase III rollout, there are mixed reactions from industry players on whether the industry is really ready to participate in the bidding of phase III nevertheless, it also depends on the policies which would determine whether it would be wise enough to participate in the bidding. There is another section which wants the music royalties and other issues resolved before the phase III is announced.

The Radio Investors Forum for instance had recently met the Minister for Information & Broadcasting, Ambika Soni and communicated the serious concerns facing the industry and regarding the FM Phase III policy. The statement of that meeting reads, “The Radio Investor's Forum has met with the Minister for Information & Broadcasting and communicated our serious concerns regarding the present initiative regarding Phase III of the FM policy. While supporting Phase 3 in principle, we have suggested that an independent and transparent evaluation of the business viability of the existing FM radio industry be conducted before launching the new phase. This will ensure that existing operators will continue to serve the large listening public and build positive investor response to the new proposed licences. In the absence of this evaluation and remedial measures, we will not be in a position to support the initiative of the government. The Minister appreciated the suggestion regarding an independent evaluation and directed her Secretariat to proceed on that front immediately.”

exchange4media finds out from industry players whether the industry is ready for Phase III rollout?

What they say:

According to Apurva Purohit, CEO, Radio City & President, AROI, “Frankly the FM industry has been ready for the Phase 3 policy announcement for the last 2 years! We have given our inputs, TRAI has given its recommendations more than a year and a half ago and we have been waiting for the MIB officials to move ahead ever since.”

Prashant Panday, CEO, Radio Mirchi explained, “No, the radio industry is not ready for FM phase III. The issues continue. Music Royalty is stuck exactly where it has been for several years. We are now requesting the Minister of HRD to get a special sitting of the Copyright Board for as many days continuously as needed to sort out the royalty issue before Phase III is announced. The issue raised by the Radio Investor’s Forum – extension of the license fee from 10 years to 15 years is not sorted out yet. The financial position of the entire radio industry is in a perilous state. Who is going to bid if Phase III is announced?”

Tarun Katial, CEO, Reliance Media World Limited said, “We haven’t received any communication from the ministry on phase III announcement this far and are awaiting official communication on the same. We believe that phase III will fuel the growth of this industry as it allows broadcasters to expand their footprint and offer advertisers greater reach across the country. The ability to deliver increased advertiser expectations will be significantly enhanced with the potential opening up of news, current affairs and live sports to private FM broadcasters. Similarly, music royalties, multiple frequencies and the extension of licence term from 10 to 15 years are issues that need adressal. We look forward to opportunities that phase III promises to deliver which will enable us to create more value for our clients and listeners alike.”

Harrish M. Bhatia, COO – MY FM 94.3 (Synergy Media Entertainment Ltd) noted, “The Phase III is definitely an awaited development but the industry still has a lot of issues which need to be resolved along with the licensing.”

Nisha Narayanan, Senior Vice President, Red FM stated, “With the economic downturn and certain unresolved issues, it’s not been smooth sailing for the radio industry, therefore I don’t think the FM industry is ready for Phase III, unless some of the issues we have been talking about are resolved. It is precisely to tackle these issues that the Investor’s Forum has been established where fundamental issues from an investor’s point of view are going to be taken up.”

The right time:

Purohit of Radio City observed, “There are mixed views on this from different operators. We at Radio City believe that the policy rollout needs to happen fast if the industry has to grow. Multiple frequencies and news availability will give the medium variety, depth and richness in content, which will further fuel its reach and hence its revenues. Networking will help manage costs better. If the policy keeps getting delayed the industry will stagnate.”

Panday of Radio Mirchi said, “The issues have to be sorted out first. If they are not sorted out, how will the bleeding radio industry participate?? There may be a situation that almost no one bids for the new licenses and it just puts a big blot on the privatization program of the MIB. What is today touted as a success of the MIB may also turn into a failure. It won’t take the government too long to understand the criticality of the issues on hand. We are confident the MIB will resolve all issues before Phase III is announced.”

Katial of Big FM said, “The time is most definitely right, the medium ready to usher a new revolution in entertainment...the FM Radio industry will welcome the new guidelines being proposed like allowing news and current affairs etc. But issues like extension of license term from 10 to 15 years, rationalization of music royalties are issues that need redressal.”

So, will they participate in the bidding?

Purohit said, “For us to bid for the next round of licenses we will have to carefully evaluate the business model yet again in the context of the non resolution of the music royalty issue. For successfully bidding of new licenses I certainly see music royalty as a major stumbling block.”

Panday said, “No, we will not go ahead with bidding. We simply can’t. We cannot willingly get into loss making expansions.”

Narayanan said, “We are open, but will take a final call after seeing the policy in that respect and are hopeful that some of the issues regarding royalties, etc. are addressed. It’s too early to comment on our plans right now.”

Bhatia of MY FM on the other hand said, “Only if the industry is coming together for it, but, standalone, NO.”

Music royalty continues to remain one of the stumbling block for a successful phase III or a viable radio business but, industry players are divided on phase III. There is a school of thought which believes that it will all depend on the finalized policy for phase III but, there is another school of thought which believes that unless music royalty not resolved it would not be wise to enter into phase III. However increase in FDI, allowing multiple frequencies per city, allowing news and current affairs from multiple sources, increasing the license period from the current 10 yrs to 15 yrs, concessions to North East markets, resolving the royalty issue and reduction in Prasar Bharati rentals which are some of the key issues concerning the radio industry today that needs to be resolved at the earliest to ensure viability of the industry.

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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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