fm broadcasting

FM Radio Broadcasting Industry - India
December 2009

Executive Summary
Market

Radio stations generated a revenue of INR 8 bn in 2008 ; expected to reach INR 18 bn by 2012
Share of radio advertising was 3.3 % in 2008; expected to reach 4% in 2012
Most stations use same level of genre of content with little or no differentiation
There are over 240 radio stations beaming across over 90 cities in India

Drivers:

Drivers &
Challenges

Trends

Competition

–
–
–
–
–
–

Challenges:

Increasing radio listener base
Opportunities in Phase III expansion
Increasing advertising by small local brands
Favourable demographics
Political advertising
Introduction of new performance measurement tool

–
–
–
–

Royalty
Lack of content differentiation
Government regulations
Bargaining tactics used by advertisers

Emergence of Visual Radio
Satellite Radio
Community Radio
Internet Radio
Sales Alliances
Players going Niche
All India Radio (AIR), covers 91% of India's area and reaches 99% of India’s population
Radio Mirchi leads the overall market with share in revenue terms in excess of 40%
Big FM leads in terms of highest number of stations
Majority of players are backed by media houses with interests in media activities like TV or Print
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

2

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

3

Privatization of Radio in India was a lengthy process
Time Line Radio Privatization

1993

• Private broadcasters sold slots on AIR’s FM channels for certain key cities, the service was later discontinued in 1998

1999

• Privatization of FM - Phase I Policy
• Bids were invited for allotting licenses for a ten-year period

2000

• Phase I FM broadcast licensing, auction was conducted

2001

• Licenses issued to private radio broadcasters

2004

• In February 2004 TRAI was asked to give recommendations for Phase II licensing of FM radio
• In August 2004, TRAI presented its recommendations on the regulatory framework for private FM stations 2005

• Announcement of Phase II Policy of privatization of FM

2006

• Licenses for 91 cities were auctioned

Source: Knowledge@Wharton “Strong Signals: India's FM Radio Stations Brace for New Competition” August 2009 ; “Sector Focus: Resurging FM Radio” ; afaqs “Market
Transformation: Radio” October 2009; CII KPMG Report “Indian Entertainment Industry: Focus 2010” ; ENIL “Indian Radio Industry”
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

4

Phase I policy was not successful due to a high license fee structure , Phase II helped in reviving radio industry
1999 - Phase I of Radio Licensing
Total Frequencies on Offer
Allotments
Key Features

Revenues Earned by Govt.

108 frequencies across 40 cities
37 licenses were taken up and 22 radio stations took off across 12 cities in the Phase-I
• In Phase I Policy of FM radio privatization, private operators were invited to bid for a 10-year license to set-up and operate FM radio stations
• No limits or penalties were levied on speculative bidding
• No foreign equity was allowed
• Bids often reaching unrealistic levels, many winning bidders paid inflated fees
• 50% of the license fee had to be paid upfront by the players
• Determination of license fee was by auction for each market
From Phase-I Government earned INR 1.55 bn
2005 - Phase II of Radio Licensing

Total Frequencies on Offer
Allotments
Key Features

Revenues Earned by Govt.

338 frequencies in 91 cities
Private FM Radio companies bidding for these licenses won 280 out of these 338 frequencies
• All the 91 cities were classified in A-plus, A, B, C and D categories
• Total 85 private players, apart from media companies and players from other sectors, were shortlisted for bidding
• Phase II granted licenses on one time entry fee (OTEF) basis along with annual revenue sharing at 4% of annual gross revenue or 10% of the reserved OTEF for the concerned city
• Government permitted automatic migration of Phase-I players if they clear all the previous dues and pay OTEF equal to the average of all successful bids under Phase-II in that city
Government earned over INR 9 bn from Phase II round of licensing

Source: Knowledge@Wharton “Strong Signals: India's FM Radio Stations Brace for New Competition” August 2009 ; “Sector Focus: Resurging FM Radio” ; afaqs “Market
Transformation: Radio” October 2009; IBEF “Radio Ga, Ga”; CII KPMG Report “Indian Entertainment Industry: Focus 2010”
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

5

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

6

Radio Market has a good growth potential
Market Overview

Advertising Revenues and Share

• There are over 240 radio stations beaming across ~90 cities in India
• Radio programming during primetime consists of at least 40 minutes of music, 9 minutes of Ads and 5 minutes of jockey talk
• Radio advertising penetration in India is low as compared to other nations
Demand for radio advertising is expected to increase as the players across industries feel the impact of recession

Advertising Revenues
% Share of Radio in Ad Pie

INR bn
20

3.1
15

3.2

3.5

%
4.0 18.0
4

15.0

2.5

3

12.0

2.1

10.0

10
5

3.6

3.3

3.8

2

8.0
5.0
2.4

6.2
1

3.2

• Radio’s national footprint is expected to rise with phase III round of licensing

0

Radio Advertising Share in Total Ad Spend

Advertisers Profile on Radio

%
9.4

10

5

3.3

0

2004

2005

2007

8.4

26%

4.4

2008 2009e 2010e 2011e 2012e

Media

Others

22%

14%
8%
FMCG
8%
12%
10%
Retail
Durables
Finance

Telecom

0

India

2006

China

Singapore

World

Source: IBEF ”Radio Ga, Ga”; ENIL “Radio Mirchi”; CII KPMG Report “Indian Entertainment Industry: Focus 2010”; “Report on the Indian Private FM Radio Sector” May 2008;
Majmudar & Co; ”The Indian media and entertainment industry”; Livemint “Consolidation, greater reach and growth ahead" December 2008
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

7

Operating cost for a radio station differ with category of the city Set-up Cost

Operating Cost

• Set-up costs include transmission and studio equipment, networking infrastructure, office premises & equipment
• Set-up cost varies from small to large stations
It ranges between INR 15 – 25 mn for smaller stations
For metro or a large city stations it is INR 40 – 50 mn

• Music Royalty : It ranges in between INR 5- 7 mn per year it is constant since current system does not differentiate between population of city and station location
• Payroll Costs: Radio jockeys and guests comprise a third of total payroll costs.
• Marketing Costs are concentrated on cities where listener base is highest, large radio companies do not have high marketing budgets for smaller stations
• License fees are to be paid, 4% of gross revenues
• Other operating costs are generally fixed and do not vary month by month these include lease rentals, utility costs, security, administration and radio tower rentals

Metros
22%

A & B Category Cities
33%

7%
7%

21%
10%

31%

C & D Category Cities
14% 7%
8%

10%
34%

25%

Marketing
28%

Payroll
Royalty

43%

Rentals
Others

Note: Categorization of stations in Phase II is according to Population
A+ :Top 4 Metros; A: Population above 2 mn; B:Population between 1 – 2 mn; C: Population between 0.3 - 1 mn; D: Population between 0.1 - 0.3 mn
Source: Ernst & Young" Survey Report on India’s FM Radio sector – Understanding the growth imperatives” 2008; Business World “ Marketing White book” 2009 -10
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

8

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

9

Drivers & Challenges - Summary

Drivers

Challenges

Increasing radio listener base

Royalty

Opportunities in Phase III expansion

Lack of content differentiation

Increasing advertising by small local brands Government regulations

Favourable demographics

Bargaining tactics used by advertisers

Political advertising
Introduction of new performance measurement tool

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

10

Increasing radio listener base and expansion opportunities in Phase III is driving growth in radio industry in India
Increasing Radio Listener base

Impact

• Easy availability of FM radio sets at affordable price points ranging between INR 40-INR 150 has fueled its mass penetration
• India has an estimated 180 million radio sets, reaching over 99% of its one billion inhabitants
This indicates vast commercial potential in India for radio market

• Availability of radio enabled mobile handsets has helped in popularizing the radio
It is estimated that 25% of mobile subscribers in India have radio enabled mobile phones
This implies that more than over 60 million people can access the radio stations while traveling

• Consumption of radio in India is still largely at home, 'the radio on the move' trend is catching on in urban and semi-urban areas
People in urban areas are listening to radio while traveling in cars using the car stereo

Opportunities in Phase III expansion

Impact

• The third phase of the FM Radio expansion proposes adding 790 new channels in 290 towns which have a population of over 100,000
• Third phase is likely to allow broadcasters to own multiple frequencies which will in turn increase their revenue and profitability by offering more programming options to listeners
• Tradability of licenses is likely to be allowed after 3 years instead of the present 5 years
• Government is considering opening news, current affairs and sports to the private players
Source: CII KPMG Report “Indian Entertainment Industry: Focus 2010; ENIL “Radio Mirchi”; Padmakshi Financial Services Pvt.Ltd” Inox Leisure”; IBEF “Young Consumer”
August 2007; Mc Kinsey “The Bird of Gold : Rise of India’s Consumer Market” May 2007
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

11

Increasing ad spend by small local brands and favorable demographics is expected to drive FM radio industry
Increasing advertising by small local brands

Impact

• Radio by its very nature, is a localized medium, due to it’s ability to transmit messages over a small geographical area
• Local firms with region specific requirements prefer advertising through radio
• Advertising on radio costs just 15% that of television
Low cost of advertising has encouraged many local firms to try advertising through Radio

• Approximately 40% of ad revenues in smaller towns come from local brands

Favourable demographics

Impact

• India has one of the youngest populations in the world
Two-third of India is under 35 years of age and the median age is about 24 years
Urban India accounts for nearly 30% of this young population

• FM radio players are targeting this young population who look at radio as mean of entertainment at home and even when they are on-the-move
• Radio stations are hiring young and energetic radio jockeys who can easily connect with the target population
• Young population is an attractive segment for most advertisers
Median Age years 24

30

35

41

India

50

China

US

Japan

0
Source: Knowledge@Wharton “Strong Signals: India's FM Radio Stations Brace for New Competition” August 2009 ; “Sector Focus: Resurging FM Radio” ; Economic Times
“FM cos may get to operate multiple frequencies” November 2009; ENIL “Radio Mirchi”; Indo-Asian News Service “FM radio sees big revenue from political ads” April 2009
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

12

Political advertising and new performance measurement tool are positive developments for this sector
Political advertising

Impact

• Government has allowed political advertising on private FM stations
Political advertising was earlier permitted for other mass mediums except private radio stations
Radio broadcasters had earlier requested the Government to allow political advertising

• Radio being the best local media available to connect with people even in far-flung areas has made it a preferred medium for political parties
• Many radio broadcasters have benefited from the ad spends of various regional and national parties during the elections

Introduction of new performance measurement tool

Impact

• Introduction of a new performance measurement tool -Radio Audience Measurement (RAM) - is expected to aid the growth in radio advertising
Although another radio listener measurement tool Indian Listenership Track (ILT) - already exists in the market, advent of RAM provides another option to both advertisers and radio stations
Both RAM and ILT are expected to aid the growth in radio advertising by making the measurement of return on investment for advertisers more scientific and assessable, and thus allowing radio stations to sell themselves better
The RAM study was launched by TAM India Limited in the cities of Delhi, Mumbai and Bangalore in October
2007, it was later expanded to include Kolkata. It is expected to extend to Hyderabad and Chennai soon
Source: Financial Express “Clearing FM radio of the static” August 2009 ; “Revival of Radio” November 2009 ; Radio and Music “Big FM Mumbai station head Sudharshan
Saha - Local advertising is moving gradually from print to radio” April 2008; CII KPMG Report “Indian Entertainment Industry: Focus 2010; “India FM radio Abuzz with activity”; ENIL “Annual Report” 2008-09; FICCI-KPMG “Media & Entertainment Industry Report”
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

13

High royalty rates and lack of content differentiation hamper industry growth
Royalty

Impact

• FM stations currently pay royalty to Phonographic Performance (PPL) representing music publishers and Indian Performing Rights Society (IPRS) representing musicians
Royalty is paid irrespective of the listener base, size of operator or even how old the songs are played

• Under an agreement from 2002, stations currently pay INR 660 per needle-hour, equivalent to
45 min of broadcast, costing 24-hour stations around INR 6 mn a year in royalty fees
PPL wants to increase it to INR 2500 per needle hour or 20% of operators' revenues, whichever is highest
IPRS is demanding INR 1020 per needle hour
This would make small radio stations not feasible

• Internationally music firms get just between 2-4% of an FM station’s revenues for music rights

Lack of content differentiation

Impact

• Due to regulatory reasons, the Indian radio industry can only provide non-news content
This creates difficulties for the channels who try to differentiate themselves with competition

• Initially, the stations had well defined niche content
However, pressure to sell airtime & recover costs forced players to play safe by playing Bollywood music
70% radio programming now comprise of Bollywood music

• This results in constant channel swapping by listeners
Thus, radio stations have been unable to generate any significant channel loyalty

Source: Knowledge@Wharton “Strong Signals: India's FM Radio Stations Brace for New Competition” August 2009; Dawn”Radio business facing major challenges” August
2007; Equitymaster “Radio industry: An overview” December 2007; Financial Express “ Content, not radio, ga-ga”; “The case of Diversification: Case Study analysis of the nature of competition in emerging markets” October 2009; CII KPMG Report “Indian Entertainment Industry: Focus 2010”; ENIL “Annual Report” 2008-09
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

14

Stringent government regulations and bargaining tactics used by advertisers impede industry growth
Government regulations

Impact

• In comparison to other media private FM radio is one of the most regulated mediums in India
• FDI in radio continues to be at 20%, the lowest as compared to print and television media
• There are restrictions on broadcasting news and current affairs programmes on private FM
This makes it difficult for radio operators in diversifying content

• Present regulations do not permit operators to own multiple frequencies in the same city, FM broadcaster can have one station per city and 15% of all stations in India
This restricts operators in targeting different target segments within the same city

• Regulations at present do not permit consolidation of business, before five years of operations
This restricts the ability for the businesses to expand or consolidate

• In India the mandatory gap between frequencies is 800 Khz as compared to 200 Khz in US
This creates unused spectrum gaps and reduces number of available frequencies

• Regulations currently prohibit sharing of facilities and content between different stations
This prevents economies of scale, increases operating costs and break even periods

Bargaining tactics used by advertisers

Impact

• Airtime is a perishable commodity for radio companies as any unsold airtime is a loss to the station and cannot be recovered
• Advertisers often delay their purchases up to the last minute in order to bring the prices down while continuing negotiations with multiple stations
• Radio stations are often forced to sell airtime at throwaway prices when sales are not achieved
Source: Exchane4media”Sooner the Phase III FM radio rollout the better, say industry players” September 2008; Business World “ Marketing White book” 2009 -10; “The case of Diversification: Case Study analysis of the nature of competition in emerging markets” October 2009; Equitymaster “Radio industry: An overview” December 2007
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

15

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

16

Trends - Summary

Emergence of
Visual Radio
Players going
Niche

Satellite Radio

Trends
Sales Alliances

Community Radio

Internet Radio

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

17

Visual and Satellite radio are upcoming trends in this sector
Emergence of Visual Radio
• Visual Radio adds a new dimension to FM radio with interactive contents and services for mobile radio listeners, increasing listener loyalty for radio station operators while providing an opportunity for mobile operators to increase usage for data services
• Visual Radio allows listeners to tune in to local FM radio via the analog receiver on their mobile phone while simultaneously receiving interactive information and graphics that are synchronized with the radio broadcast via the cellular data network onto the screen

Trends

• Hutch is planning to launch Visual Radio service for its customers in New Delhi, followed by other metros in the country
Satellite Radio
• A satellite radio is basically a digital format of the medium that receives signals broadcast by communications satellite
• It is possible to receive satellite radio stations from anywhere in the country, unlike terrestrial radio (AM and FM) whose signals are limited to a certain area
• Satellite radio offers digital quality sound and uninterrupted service without any commercials • It is not possible to tune in to local radio stations using satellite radio
• Satellite radio service is not for free, it is available on subscription for a fee
• Currently WorldSpace is the only satellite radio offering its services in India

Source: Rediff “Satellite radio is here to stay” November 2005
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

18

Community and Internet radio have helped in improving radio listenership in India
Community Radio

Trends

• Community radio operates out of rural or urban areas and is broadcasted to small areas
• It operates on non-commercial basis fulfilling specific needs of various groups
• It has a limited broadcast range of about five kilometers
• It is usually operated by educational institutions and NGOs, who use the service to broadcast public service messages
• Earlier, for a couple of years, it was mostly ‘campus radio’ stations that were being allowed to operate as community radio
• Government is also considering 5,000 licenses for community radio
Licenses would be divided into sectors, such as farming community, fishing community, women and children and others

Internet Radio
• Internet radio is an audio broadcasting service transmitted through the internet
• Internet radio stations are accessible from anywhere in the world, which makes them popular Tata Indicom has launched seamless internet radio services, offering its customers access to 41 international and local radio stations through its application, ‘Brew,’ at an attractive price of INR 25 for a
15-day subscription
Source: “India FM radio Abuzz with activity”; “Tata Indicom Press Release” June 2007
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

19

Players are forging alliances with other stations and are targeting niche audience for improving revenues
Sales Alliances
• Radio stations are forging alliances with other stations in order to offer advertisers larger packages to reach bigger audiences
Radio Misty, which operates in the eastern cities of Siliguri and Gangtok and has a sales alliance with
Radio One, which broadcasts in seven cities
Radio Mirchi has alliances with Radio Chaska in Gwalior, Radio Gupshup in Guwahati and Radio
Mantra’s eight stations
Radio Mirchi’s tie-up with Radio Mantra of the Dainik Jagran Group has resulted in an encouraging flow of incremental revenues to both the brands/networks

Trends
Players going Niche
• Stations are expected to try out niche content formats once the government allows multiple license ownership in each city
• Stations are planning to have programmes in more than one language, and cater to more than one genre of music
• Few radio stations are already targeting niche audience
Radio Today has niche, talk based Meow 104.8 FM, a channel dedicated to women
Radio City instance, is targeting older audiences as compared to other stations
Red FM is chasing a younger audience
Hit 95 FM plays only English songs
Source: Knowledge@Wharton “Strong Signals: India's FM Radio Stations Brace for New Competition” August 2009 ; “India: FM Radio Stations”
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

20

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

21

Majority of players are backed by media houses with interests in other media activities like television or print
Competition Overview

Private players – No. of Stations

• In terms of reach, All India Radio (AIR), covers 91% of
India's area and reaches 99 % of India’s population
• Radio Mirchi leads the overall market with a share, in revenue terms, in excess of 40%
• Market comprises of small and large players
Small players normally have two to four stations
Large players are present nationally or in multiple regions
Majority of players are backed by media houses with interests in other media activities like TV or Print
– Such players are in position of providing benefit of crossadvertising to advertisers

• Regulations at present do not permit consolidation of business, before five years of operations
Large players are thus forging strategic sales tie-up with the regional or small players

• Metro cities are over crowded with FM stations
18% of all private FM stations are located in metros
Metro cities have diverse set of people, hence attract maximum attention of advertisers

• Radio companies spend a lot of effort on branding
Companies try to differentiate by building loyalty through
RJ shows

Big FM
Red FM
Radio Mirchi
Radio City
My FM
Radio Dhamaal 24
Radio Mantra
Suryan FM
Radio One
Hello FM
Radio Ooo La La
Radio Mango
Club FM
Fever 104
Radio Choklate
Meow FM
Radio Indigo
Nine FM
Aahaa FM
Radio Tomato
Radio Misty
Hit FM
Radio Chaska

45
41
32
20
17
10
8
7
7
7
4
4
4
4
3
3
2
2
2
1
1
1
1

Source: Company Websites; “FICCI-KPMG Media & Entertainment Industry Report”; ENIL Radio Mirchi Annual Report 2008-09 ; “The case of Diversification: Case Study analysis of the nature of competition in emerging markets” October 2009
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

22

Major Players (1/7)
Company

FM Frequency

No. of Stations

Aahaa FM

91.9

1

All India Radio
(AIR)

Various
Frequencies

Pan India

Business Description
• It broadcasts in Chennai
• It also offers Online Live service
• It is promoted by Kumudham publications in Tamil Nadu
• It is operated by the Prasar Bharati Broadcasting Corporation of India
• AIR network comprises of 232 broadcasting centers with 149 medium frequency (MW), 54 high frequency (SW) and 171
FM transmitters
• AIR broadcasts in 24 languages and 146 dialects in home services • In external services AIR covers 27 languages; 17 national and
10 foreign languages
• News, music and spoken work programmes are part of AIR's programme composition
• FM service of AIR has comprises of two channels
FM Rainbow and FM Gold
There are 12 FM Rainbow channels and 4 FM Gold Channels

• Its popular services include Vividh Bharati and Akashvani
Note: This list is not exhaustive
Source: Company Websites
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

23

Major Players (2/7)
Company

FM Frequency

No. of Stations

Business Description

Big FM

92.7

45

• It is a radio initiative from Reliance Media World Ltd
• It launched its first Station in September 2006
• A network of 45 stations including an FM station in Singapore
• Major cities covered include Hyderabad, Mumbai, Delhi,
Kolkata, Mangalore, Jalandhar, Ajmer, Bhopal and Surat

Club FM

94.3

4

• Club FM started its service on January 1, 2008
• It is a private FM radio station for the state of Kerala, operated by the Mathrubhumi in Kerala
• Services in Cochin, Thiruvanathapuram, Kannur and Thrissur

Fever 104

104

4

• It broadcasts in Mumbai, Bangalore, Delhi and Kolkata
• It is operated by HT Media Ltd
• HT Media also owns Hindustan Times, Mint (newspaper), and social networking site, Desimartini

26

• It is an educational FM radio station in several cities of India
• Operate as ‘media cooperative’ with day-to-day programmes contributed by educational institutions, NGOs, government and semi-government organizations, UN agencies, Ministries
• Medium of broadcast is English, Hindi or regional language
• Broadcasts through radio network of 26 Gyan Vani Stations

Gyan Vani

Various
Frequencies

Note: This list is not exhaustive
Source: Company Websites
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

24

Major Players (3/7)
Company

FM Frequency

No. of Stations

Business Description

Hello FM

106.4

7

• It is promoted by Malar Publications
• It has broadcasting centers at Chennai, Madurai, Coimbatore,
Trichy, Tirunelveli, Tuticorin and Pondicherry
• It had partnered with the Chennai Sangamam 2007 and 2008,
Mrs. Chennai 2007 and 08 and ATP Tennis Chennai Open
2007
• Hello FM is planning to bid for licenses for 14 locations in
Tamil Nadu that are likely to be up for bidding in Third Phase

Hit FM

95

1

• It broadcasts only in Delhi
• It partnered with Idea Cellular to present ‘The Michael
Jackson This Is It Challenge’, the show asks listeners to come on-air and sing Michael Jackson's (MJ) records
• Participants are required to call up a number, which puts them through to an IVRS and records a 30-second extract from any MJ song

Meow FM

104.8

3

• It is present in Mumbai, Kolkata and Delhi
• It is an India Today Group venture
• It is Just-for-Women Radio station

Note: This list is not exhaustive
Source: Company Websites; afaqs “Hit 95 FM challenges listeners to sing in MJ style” June 2009
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

25

Major Players (4/7)
Company

FM Frequency

No. of Stations

Business Description

My FM

94.3

17

• It is owned by the Bhaskar Group
• It broadcasts in Ahmedabad, Ajmer, Amritsar, Bilaspur,
Bhopal, Chandigarh, Gwalior, Indore, Jabalpur, Jaipur,
Jalandhar, Jodhpur, Kota, Nagpur, Raipur, Surat and Udaipur

Nine FM

91.9

2

• It broadcasts in Gangtok and Siliguri
• Nine FM also provides opportunity to the common people of
Sikkim to place their requests to listen to their favorite songs, which they want to listen or dedicate to their loved ones
• Nine has collection of Nepali, English and Hindi music

Radio Chaska

95

1

• It operates in Gwalior
• It forged a partnership with Radio Netherlands Worldwide
(RNW) in 2008 and under which it will air the popular monthly chart show Euro Hit 40, European Jazz, jazz performances from stages across the Europe and classical music Radio Choklate

104

3

• FM radio venture of Orissa from the house of Sambad group
Sambad is popular daily newspaper in Orissa

• It broadcasts from Rourkela, Cuttack and Bhubneshwar

Note: This list is not exhaustive
Source: Company Websites; “Radio Netherlands inks content deal with Radio Chaska” November 2008
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

26

Major Players (5/7)
Company

FM Frequency

No. of Stations

Business Description

Radio City

91.1

20

Radio Dhamaal
24

106.4

10

Red FM

93.5

41

• Its network covers 41cities
• Prominent cities covered by Red FM include Mumbai, Delhi,
Kolkata Pune, Bhopal, Gwalior, Jabalpur, Indore, Nashik, etc
• It is owned by Sun TV Network
• It was acquired from India Today promoter Living Media in
January 2006

Radio Indigo

91.9

2

• Broadcasts in Bangalore and Goa and plays contemporary & international music

• Promoted by Music Broadcast Private Limited (MBPL)
• Covers Mumbai, Delhi, Bangalore, Chennai, Ahmedabad,
Pune, Hyderabad, Lucknow, Jaipur, Vadodara, Surat,
Sholapur, Nagpur, Sangli, Coimbatore, Vizag, Ahmednagar,
Akola, Nanded & Jalgaon
• Provides end-to-end 360 degree brand marketing solutions through its Radio City Connect service
• It is promoted by BAG Films & Media Ltd
• It is available in Hissar, Karnal, Patiala, Muzaffarpur, Dhule
Jalgaon, Ranchi, Ahmednagar, Jabalpur and Shimla

Note: This list is not exhaustive
Source: Company Websites
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

27

Major Players (6/7)
Company

FM
Frequency

No. of
Stations

Radio Mango

91.9

4

Radio Mantra

91.9

8

• Owned and operated by the Dainik Jagran-promoted Shri Puran
Multimedia Ltd (SPML)
• Covers Jalandhar, Agra, Bareilly, Gorakhpur, Hissar, Karnal, Ranchi,
Varanasi
• It forged an alliance for ad sales with Radio Mirchi in 2007
• Independent News and Media (INM) acquired 20% stake

Radio Mirchi

98.3

32

• It is operated by Entertainment Network India Ltd
• It launched its first station in Indore in 2001
• Licenses in all of India’s fourteen cities with a population of over 2 mn
• Key cities covered by Radio Mirchi include Delhi, Mumbai, Kolkata,
Bangalore, Hyderabad, Chandigarh and Jaipur
Financials:
• Reported a total income of INR 4.3 bn and net loss of 603 mn in
FY’2008-09

Business Description
• It is a Malayala Manorama venture
• It broadcasts in Thrissur Kozhikode ,Kochi, Kannur
• It started FM broadcasting from November, 2007

Note: This list is not exhaustive
Source: Company Websites; “Nine FM launches in Sikkim “ September 2008
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

28

Major Players (7/7)
Company

FM
Frequency

No. of
Stations

Radio Misty

94.3

1

Radio Ooo La La

• 91.9
• 91.5
(Shillong)

4

Business Description
• Air programmes in Hindi, Bengali, Nepali and English
• It is broadcasted from Siliguri and is audible in the districts of North
Bengal namely Darjeeling, Jalpaiguri, South Dinajpur, North Dinajpur,
Coochbehar and eastern part of Bihar and Sikkim
• Promoted by Positiv Radio Pvt. Ltd.
• Broadcasts in Guwahati, Shillong, Itanagar and Agartala

Radio One

94.3
&
95.0

7

• It is a joint venture between Mid-day Multimedia and BBC worldwide
• It operates in 7 cities namely Mumbai, Delhi, Bangalore, Kolkata,
Chennai, Pune and Ahmedabad
• It broadcasts at 94.3 MHz in all cities except in Ahmedabad where it broadcasts on 95.0 Mhz

Radio Tomato

94.3

1

• It is operated by Pudhari Publications
• It broadcasts in Kolhapur

Suryan FM

93.5

7

• It is a part of Sun TV network
• Present in Chennai, Coimbatore, Trichy, Madurai, Tirunelveli and
Pondicherry

Note: This list is not exhaustive
Source: Company Websites; “Radio City Connect partners with Force India for Go Karting Championship” June 2009; IndianTelevision.com“Radio Mirchi, Radio Mantra join hands for ad sales” June 2007
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

29

•Privatization of Radio
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

30

Key Developments
Date

Development

30-Nov-2009

The Indira Gandhi National Open University (IGNOU) started its FM radio channel in Pune, the channel will be available on FM 105.6 every day from 8 am to 1 pm and 3 pm to 8 pm & will primarily relay educational programmes for students, IGNOU has signed a memorandum of understanding with the
All India Radio for transmission of the channel.

27-Nov-2009

Radio One, a joint venture between Mid-Day Multimedia & BBC Worldwide, will no longer air entertainment capsules produced by BBC World Service, it had been doing so for last 3 years

26-Nov-2009

All India Radio would be carrying forward its association with Digital Radio Mondiale (DRM) by live broadcasting the 2010 Commonwealth games to be held in Delhi

26-Nov-2009

The country's 49th Community Radio Station (CRS), called 'Rudi No Radio' in Gujarati became operational, it is managed by Self Employed Women's Association (SEWA) Academy in Manipur village in Sanand taluka

23-Nov-2009

Pepsi has partnered with Fever FM for an activity titled 'Pepsi My Show My Way', in this activity youngsters were asked questions pertaining to their life and situations they face in a 10-foot high mobile radio studio built in the shape of Pepsi My Can

13-Nov-2009

The Information & Broadcasting (I&B) ministry has proposed that FM radio players be allowed to operate multiple frequencies in the same city

29-Sept-2009

Nine institutions have been issued licenses for setting up community radio stations in Kerala

03-Jun-2009

Adlabs has announced that the Ministry of Information and Broadcasting, has approved a proposal to transfer its FM radio business to Reliance Unicom Ltd (RUL)

Source: Press Articles
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

31

Thank you for the attention
The FM Radio Broadcasting Industry - India report is a part of Research on India’s Media and
Entertainment Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA

Gagan Uppal

Phone:
E-Mail:

Phone:
E-Mail:

[phone] [e-mail] [phone] [e-mail] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
FM RADIO BROADCASTING INDUSTRY – INDIA.PPT

32