MxMIndia

Tag: Association of Radio Operators forIndia

  • The e-auction for Phase III is expected to begin in January 2013 and may take another two or three years until the entire FM Phase III expansion is completed

    FM Phase III: Pre-qualification bid for e-auctions starts Sept

    By Robin Thomas

     

    The FM radio industry has moved one step closer to the Phase III expansion as the Ministry of Information and Broadcasting (MIB) has called for tenders starting September 2012. The pre-qualification for the bidders is expected to be complete in another two months, following which the qualified companies will be allowed to participate in the e-auction for FM Phase III. The e-auction for Phase III is expected to begin in January 2013 and may take another two or three years until the entire FM Phase III expansion is completed.

     

    CS Kaushik, Deputy Secretary (FM), MIB (Ministry of Information and Broadcasting) and Uday Chawla, Secretary General, Association of Radio Operators for India (AROI) have confirmed the development to MxMIndia.

     

    It may be recalled that the Union Cabinet had given its nod to the e-auction for FM Phase III. In November 2011, an Inter-Ministerial Committee (IMC) was constituted in the MIB with an aim to guide and supervise the process of e-auction and to award the license of FM radio stations to private agencies under the FM radio Phase III expansions.

     

    FM Phase III policy seeks to extend FM radio services to about 227 new cities. Phase III will cover all cities with a population of one lakh and above, simultaneously, there will be a total of 839 new FM radio channels in 294 cities. In addition, FM radio stations will also be allowed to air news, but sourced from AIR (All India Radio) only.

     

     

  • A weekly column by Paritosh Joshi, until recently CEO, Star CJ. Given his varied experience in the media and industry bodies, Mr Joshi will analyse issues concerning the business of media, measurement and research

    Paritosh Joshi: Everything I had to know, I heard it on my radio

    By Paritosh Joshi

     

    Three times this last week, radio has crept into my conversations, with three quite different people. Let me cite just one. We were talking about our preferences between playing music from our CD collection and dialing up a radio station. My guest was enthusiastic in his approbation for the radio, for a very simple reason too. “When you play music from your collection, you always know what’s coming up next,” he said, adding: “and what makes radio fun is it’s an endlessly unfolding sequence of surprises.”

     

    To which I would add that there is something rather relaxing about leaving the hard work of choosing what plays next to someone else, indeed someone else who is specialized in the art and craft of assembling and running through playlists.

     

    Got me thinking about radio, so it was the obvious next step to check out what the industry association offered up. Wasn’t hard to locate the website of the Association of Radio Operators for India (AROI). Promptly went there to discover – well, not a lot. Had to get something on the industry and thankfully, the good people at KPMG and FICCI had the latest “Indian Media & Entertainment Industry Report” available for download, which I swiftly proceeded to do. Here’s what I found.

     

    The Radio industry in 2012 is worth a mere Rs13 billion, ~ US $ 240 million and represents a mere 1.6 per cent of the overall industry of Rs 823 billion, ~ US $ 15 billion.

     

    In five years, it is projected to grow to Rs 29 billion, still just ~ US 540 million but representing a slightly more respectable 2 per cent of the overall pie. Evidently, this will require it to grow faster than the overall pace, which it is projected to do, clipping along at a 21 per cent CAGR even as the overall number doesn’t quite get to a 15 per cent CAGR.

     

    Dig deeper and you will find that a lot of the enthusiasm stems from FM Radio Phase III which will introduce private FM to as many as 227 new towns. So that is all it takes to make radio exciting, is it?

     

    Let’s take a look elsewhere and find out what radio is really about. A good place to start is any of these: Last.fm, “tunein.com” Radio or “shoutcast.com” Radio Directory. All of them are aggregators, like the portals of yore in some ways, which offer you an endless variety of radio stations from across the planet. An important aspect of what is on offer is the range of ‘genres’ by which the stations are classified. Here’s a list of the genres under the broad category, ‘Music’ on TuneIn:

     

     

    Adult Contemporary Country Hip Hop Rock Top 40-Pop
    Blues Decades Jazz Soul World
    Classical Easy Listening Oldies Spanish
    College Electronic-Dance Religious Specialty

     

     

    Just in case you might think this was a bewildering choice, I have news for you. ‘Sports’ offers a choice of 21 genres, including, trust me, ‘Fantasy League’.

     

    The point I’m making is quite simple really. Radio is all about precise choices and tightly defined audiences. Stations have an unapologetic and uncompromising commitment to their audiences and are only able to attract them because they stick to playlists that reflect the choices of their highly differentiated audience.

     

    What does the picture look like inIndia? Our earliest templates from what radio stations must sound like came from Akashvani, the one channel that catered to our teeming millions long before the brash youngsters arrived on the scene with FM Phase I.

     

    Akashvani was the ‘one size fits all’ / ‘any colour so long as it is black” radio station. From programming in two, even three, languages to carrying everything from mythologicals through adventure serials (anyone remember Inspector Eagle here?), to the News and various topical features, radio did everything – catered, as it were, to the lowest common denominator.

     

    Look at where we are now. Barring one station that chooses to play a purely Western playlist, all our major metros run a whole bunch of stations whose content is largely interchangeable, mainly because their music and even anchoring style – chatty, hip youngsters doing their clever, irreverent thing, are right out of a cookie cutter.

     

    Now before I get flamed out by radio folks pointing to the compulsions of recouping sizable licence costs, I must beg forgiveness and hide behind the defence of ignorance. What I do know, however, is this cannot possibly be the best way for radio to go forward.

     

    Radio must target tightly and then programme obsessively to that chosen audience. “Let me be just like everyone else” is not good marketing in any category, least of all radio. Keep in mind that radio will shift away from airwave frequencies to the Internet. That’s when the same-same (known, I believe, as Adult Contemporary) content will die anyway.

     

    I began by invoking Queen’s Radio Gaga and can’t help but quoting again from the same, wonderful song at the end.

     

    “You’ve yet to have your finest hour Radio – radio”

     

    Paritosh Joshi was until recently CEO, Star CJ. He has been a marketer, a mediaperson and a key officebearer on industry bodies. He is Strategic Advisor, Ormax Media. He can reached via his Twitter handle @paritoshZero
  • This bill will allow the Copyright Board to decide the royalty rates for the broadcasters, which until now was decided by the PPL

    Radio broadcasters thumbs up to Copyright Bill

    By A Correspondent

     

    The Copyright Amendment Act which was passed recently in Lok Sabha has come as a huge relief, not only for the artists, musicians and content creators, but also for the Indian radio fraternity.

     

    This bill will allow the Copyright Board to decide the royalty rates for the broadcasters, which until now was decided by the PPL (Phonographic Performance Ltd.). PPL is the copyright society with respect to sound recordings. While the bill is clearly beneficial for the rightful owners of the copyright, how much profitable will it be for the radio broadcasters, will be known only once the copyright board decides on the rates that the broadcasters may have to pay for the copyright owners.

     

    The Copyright Amendment Act 2012 allows artists, song writers and performers to claim the royalties for content creation. While the bill has also made it mandatory for both radio and television broadcasters pay royalty to the copyright owners each time their content is broadcasted, what it also ensures is that unlike before, the amended Copyright Act will allow broadcasters to pay music royalties on a pro-rata basis. As a result, it will help broadcasters generate more revenues.

     

    What they say:

    Speaking to MxMIndia, Ms Anurradha Prasad, Chairperson cum Managing Director, B.A.G Network and president of Association of Radio Operators for India (AROI) said: “We welcome the Copyright Amendment Act because it will bring a sea change in the industry. The radio industry has been bleeding because of the huge royalties it has to pay for the music. Therefore, it is a great step forward, and I believe it is a win-win situation for the entire chain because it will bring in more transparency and, as a result, more revenues will be generated.”

     

    Mr Vipul Pradhan, CEO of PPL said that while he welcomed the amendment that the royalties be given to the rightful owners of the content, what he is not pleased with is the statutory licensing for users as it would take away the monetizing rights of the music companies, nevertheless, PPL will abide by the law. “We welcome the Copyright Amendment Act and we will follow the new law. We welcome the first part of the amendment which allows the rightful owners of content to get their royalties. However, it is the second part of the amendment – the statutory licensing for the users is something that we are not happy about.”

     

    “The statutory licenses for the users are basically the people who are using our content as business activity which is where I think the statutory license of content for radio or television is something that is not desirable. We will see how the statutory licenses for users will impact the music companies in the long run. So, while we welcome the move to allow artists and content creators to claim their royalties for their work, it is the statutory licensing for users that concerns us because it will take away the monetization rights of the music companies, which in the long run could affect the creation of these rights,” he added.

     

    Rabe T Iyer, Business Head, Big FM explained: “It is a constructive and beneficial step in truly recognizing the real owners of music and not just the labels who pitch and buy them. It is also a fair distribution of rights which will lead to increasing talent pool, greater accountability of quality and continued effort to innovate. I believe it will provide greater flexibility for radio stations to play music recomposed or readjusted by creators of songs and it will allow more artists, song writers to get their dues.”

     

    Mr Amitabh Srivastava, Country Manager, Radio Netherlands noted that this move is very much in sync with industry requirements as it would resolve most of the royalty issues faced by the radio industry. Mr Srivastava also said that unlikeIndia, the international model of intellectual property rights is quite rigid as it ensures that the owners of the copyright get their due shares, and that with the passage of this legislation we can expect international standards in copyrights as well. “This bill is more beneficial for content owners than the radio broadcasters. This bill will bring legitimacy in the royalty issues and it will promote more self generating content which is not happening right now. So, it is a welcoming change because when copyright is legitimized, even the broadcasters will be allowed to create their own content which we do not see taking place as of now.”

     

    Shreyams Kumar, Director Mathrubhumi said: “We don’t mind paying money to the artists, but paying money to the music companies which does not reach the rightful owners is what we don’t approve. Thus the Copyright Amendment Act is a welcome move as it will lead to more transparency in the music and broadcast industry. This amended act will definitely be a cost saver for the radio industry and it will certainly help the radio industry in the long run.”

     

    Ms Monica Nayyar Patnaik, Joint Managing Director at Eastern Media Ltd and Mr Naval Toshniwal, CEO Tomato FM and Vice President, Pudhari Publications were of the view that this bill is a step in the right direction which will benefit the radio industry and act as a cost saver for the industry.

     

  • The industry needs to highlight the advantages of radio and showcase some marketing successes built on radio campaigns, feels Anurradha Prasad

    Much needs to be done to make radio top-of-mind: Anurradha Prasad

    Anurradha Prasad is the Chairperson cum Managing Director, B.A.G Network. She is also the President of Association of Radio Operators for India (AROI). In conversation with MxM India’s Robin Thomas, Ms. Prasad spoke at length on the overall FM phase III developments, self regulation for FM radio in India, the challenges and road ahead for the radio industry in India.

     

    With positive changes such as the Union Cabinet accepting Ministry of Information and Broadcasting’s (MIB) FM phase III proposal, FDI limit being raised marginally, news to be allowed on private radio stations, and government’s nod to e-auction, as the AROI President, what are your views on the overall development in the industry?

    Phase III is an important step forward in the development of radio industry in India. However, much more needs to be done to make radio a top-of-mind media for Government and Advertisers.

     

    How could it have been better?

    Issues such as extension of time period and the resulting extension fees for existing radio operators have not been addressed. Phase III players will get a 15-year license, as was repeatedly demanded by AROI. However, the existing operators, who convinced the Government that the 10-year period is too less for even recuperate investments, feel let down due to this. Further content freedom allowed to all other media continues to be denied to FM radio.

     

    When is FM phase III expected to be rolled out? What are your expectations from it?

    The MIB has already constituted inter-ministerial committees to execute the policy. Time lines can be best advised by them.

     

    The government seems to be reluctant in allowing complete independence to FM radio on news and current affairs. What do you think is holding them back? 

    The issue is of setting up a monitoring system so that radio content can be monitored by the government. Once this is ready, we don’t think government will have any reason to limit news on FM radio.

     

    Unlike the print or the television, radio is said to be a highly regulated medium. Shouldn’t the radio industry also be self regulated rather than be regulated by the government?

    Yes, radio should be self regulated and that is why we are formulating our own codes so that national interest is kept sacrosanct in radio content.

     

    Can you throw some more light on the self-regulation and content code? Will the code of ethics be restricted only to AROI members?

    We will share details once the code is formulated and approved by the members. As all operators are members, there is no distinction between AROI and the industry.

     

    RJ Mentions is seen by some as a breach of ethics, especially because the station fails to inform the listeners that it is a plug. Do you agree?

    We cannot generalize as this can be decided only on a case to case basis. But we will formulate guidelines.

     

    Do you think radio stations are far too much dependent of advertising revenues? Are there any other sources of revenues that can be explored? 

    It is a fact that all forms of media are dependent on advertisements. Radio, being free to air, is slightly more dependent. However, radio will open up over 200 new markets this year to marketers. I think the immediate focus has to be in these markets. Combination of ground events, backed by radio, could be another revenue source.

     

    Has the music royalty issue finally laid to rest by the copyright board? What is the revenue sharing ratio between FM stations and music companies?

    Only those operators who had approached Copyright Board have got the benefit. The judgment is also under appeal from music industry. However, with statutory licensing being planned by HRD Ministry, the other operators can take immediate advantage thereafter.

     

    What according to you are some of the challenges before the radio industry? What steps need to be taken to overcome them?

    The main challenge is to change the mind sets, especially of advertisers, for whom radio is still at the bottom of their media plans. The industry needs to highlight the advantages of radio and showcase some marketing successes built on radio campaigns.

     

    Is employee retention one of the challenges facing the radio industry? Is there a talent crunch?

    There is always a talent shortage in media. However, like in television, radio, too, managed to operate over 240 stations on a non-existent talent base. AROI, on its part, is setting up a Skill Development Council for talent development, in association with Government & FICCI.

     

    What is the road ahead like for the radio industry?

    Right now the focus will be on closing pending issues – with BECIL, Prasar Bharti – as also the upcoming bid for 800 stations. In the longer run, radio is set to emerge as a strong competitor to both print and TV, with its uniqueness as both a local and national media, as well as the only media that is consumed even while consumers are engaged in other activities such as driving, working or playing.