MxMIndia

Tag: FM

  • As we completed five months of existence yesterday, we stepped back to our commitment of Day 1: cover media like no one else in the business. At MxMIndia, we are committed to support the 'underdogs' amongst the various media segments. So: journalism came first. Then PR and now Radio.

    Hello and Welcome to MxM Radio!

    Hello and Welcome to MxMIndia’s exclusive ‘channel’ for Radio… FM, All India Radio, Community Radio, Internet Radio and whatever else is happening in the world of radio in India.

     

    There have been various attempts to cover radio, but not being the most fashionable of media segments, it’s largely neglected. The reason is perhaps that there isn’t enough money backing the business.

     

    As we completed five months of existence yesterday, we stepped back to our commitment of Day 1: cover media like no one else in the business. At MxMIndia, we are committed to support the ‘underdogs’ amongst the various media segments. So: journalism came first. Then PR and now Radio.

     

    With Phase 3 set to take off soon and a maturing of minds – from amongst listeners and the players, we expect a lot of activity in radioland. MxMIndia has a dedicate resource to bring you a ringside view. Senior Correspondent Robin Thomas painstakingly covers radio like few others in the trade.

     

    We do not hesitate to ask the tough questions and cover issues that some may find uncomfortable. For instance, should RJ mentions be considered as paid content.

     

    So, behenon aur bhaioan, stay tuned in to MxM Radio. And do let us have your feedback.

     

    Email Robin who is coordinating the channel. He can be reached at robint [at]mxmindia.com. And feel free to call any of us in the MxM team.

     

    Cheers!

     

    Pradyuman Maheshwari

    Email: pradyumanm[at]mxmindia.com,

    BBM: 23050B5D

    Gtalk: pradyumanm[at]gmail.com,

    Twitter: @pmahesh

    Telephone: 98338 76278.

     

  • Lack of government support is the main reason FM stations in the North-East region face an uphill task.

    FM in the North-East – a foggy picture

    By Robin Thomas

     

    Phase III of FM is likely to bring more radio services to the North-East, a region known for being music-crazy. Currently, Guwahati, Shillong and Gangtok are the only cities in the region to have any FM radio services. While Red FM and Big FM are the only national players present in this region, the local players are Radio Misty, Radio Gupshup, Nine FM and Radio Ooolala.

     

    The music generally played in these markets is a mix of regional, English and Bollywood songs. One of the major challenges facing the North-East players, particularly the local FM stations, is the high music royalty rates, and that revenue generation is comparatively lower than the metros, making it a little difficult for survival.

     

    Nisha Narayanan, Senior VP Projects & Programming, Red FM explained, “Radio as a medium is very popular in the North-East as the North-East has a very strong music connect, it has a rich music culture. The drawback however is the lack of government support for radio in this region. Most radio stations in the North-East are local players, there are not many national players because they do not see too many benefits from these markets.”

     

    Nishant Mittal, CEO Radio Misty said, “We are in Gangtok and Siliguri, and both these markets have been very good for us and for radio because the youth in this region are very inclined to music.”

     

    Low advertising revenue

    Most of the advertisers in radio are local, particularly from the retail category. National or corporate advertisers in radio are said to be very few in the North-East. The national-local advertising ratio of Radio Misty, for instance, is 40:60.

     

    According to S Wassim Ahmed, Station Head, Radio GupShup, the spot rate for radio in North-East is even Rs 100 per spot, thus making it tough for the medium in these regions. “Regional advertisers’ response initially was bad. You cannot blame them, they were not educated about the impact of the FM radio. The national advertisers were equally apathetic towards the Guwahati market (North-East market is non existence for all the practical reason). The spot rate is pathetically low. It is invariably below 100/spot. Radio life is toughs in these parts of the country.”

     

    The challenge

    Some of the challenges for radio in the North-East according to the industry players are huge royalty rates. Revenue generation is comparatively lower than those in other parts of the country, and the challenge to get the right talent because of limited man power.

     

    According to Mr Ahmed of Radio GupShup increased government support and minimized capital outflow will ease the burden of the FM radio business in the North-East. “For the radio business model to be sustainable in these remote parts, the capital outflow should lessen. Just like government subsidy is available in any other industry in the North-East, radio too should also get those benefits. Government support in terms of DAVP advertisements would be a great boost.”

     

  • Listener first – plus smart programming and marketing. Vehrnon Ibrahim’s tips for hitting the right note.

    The Anchor: 6 lessons radio can learn from abroad

    By Vehrnon Ibrahim

     

    #1 Throw a rock rather than chucking small stones:

    Heart FM London went after 25-44 women. About 20 percent of overall available listenership, but in a market where there are 20-odd stations 20 percent is actually a huge opportunity. I like to say it’s like throwing small stones at a target; you will hit it, always no matter how bad your aim is, but never leave an impact. Chuck a well aimed rock at the target and you will destroy it. If the proposal to allow more frequencies in major metros goes through we will hear many different formats of radio as all the new players will want to go up against players who target such wide demos.

     

    #2 Don’t just Post-it, stick to it:

    People listen to radio for entertainment and that mostly means music – so why loyalty in a market when everyone is pretty much playing the same music? Promise becomes important. Call it a brand, call it a position, and call it a culture, it’s all about telling the listener what you have to offer and making sure you offer that. K-Earth 101 in LA says “Classic Hits” and that’s all they ever play. So when you tune in you know what you will get.

     

    #3 Don’t be anti-social:

    Hitz.FM in Malaysia has a quarter of a million Likes on Facebook. They have cut down dramatically on marketing and messaging spends. Jake Abdulla demonstrated to me by posting a message which generated over 200 likes within 30 seconds! That’s huge, and it went on. It’s a bigger deal in India than we are giving it credit for, and in months to come we will all be using social media for our messaging to our core listeners, our existing CUME.

     

    #4 One promotion every sweep:

    Virgin radio stations around the world do this very effectively. This is an old chestnut in markets where ratings happen once every quarter or half etc… Anytime the diaries go out or the PPM come to town the radio stations send out the artillery and blast away for share. We are the only country in the world to have a 52-week diary. So that implies we should be doing a promotion all the time, and that’s exactly what we should do. Short bursts of firepower don’t win wars, it’s the long-term campaign that works.

     

    #5 Heavy ball, long chain:

    Lay down the boundaries of what the content will cover and make sure the programming team stay within it. London’s Capitol FM is a local station in a capital city. They cover entertainment and London, that’s it. If it’s happening in London or if it’s entertaining then it is happening on Capitol FM.

     

    #6 Character over content any day (my personal mantra):

    Terry Wogan of BBC Radio 2 has been on air for nearly 55 years but once upon a time he was a fledgling talent looking for a break. Though he is not even from the UK, he is a national treasure there. We need to approach recruitments at a different angle and hire for the future, rather than steal from competition and inherit a jock who will continue to give ratings to his old station for years to come.

     

    Vehrnon Ibrahim is the National Programming Head, Oye! 104.8 FM

     

  • Radio is free, easy to access, and reaches everyone, everywhere. Yet why is the eye favoured over the ear?

    FM radio: Waiting in the wings for how long?

     

     

    By Ritu Midha

     

    Television and print continue to be the mainstay of any media plan. The buzz around launch of new channels and publications (largely newspapers) is difficult to ignore. Digital media, too, has become a medium of ‘now’. Meanwhile, radio continues to struggle, with cost to operate being quite high while profitability is still an issue. Is it time, then, to ring the alarm bells? Is radio getting lost even before it has acquired a national footprint?

     

    Prashant Panday

    Radio: Today

    Prashant Panday, CEO, ENIL, emphasises: “There is no evidence of that yet, though if Phase III expansion gets delayed, this is bound to happen. The Indian media scenario has new brand launches happening all the time. Newspaper reports say that since August this year, the Ministry of I&B has given permission for 745 new TV channels – about half of which are news channels. Likewise, if you look at newspapers, there are editions opening across the country almost every month. It’s the same with outdoor sites and internet portals. In a scenario like this, if there is no addition in the number of radio channels, then the sector will get affected. That is one reason we are waiting for the 800 odd new radio licenses to be issued under Phase III. At present though, radio continues to grow, and its share continues to be just under 5 percent of total advertising spends.”

     

    Media planning and buying fraternity, in turn believes that radio as a medium is gaining popularity, and that is largely because of its content which touches a cord with the local consumers. Mohit Joshi, Managing Partner, MPG India, explains, “While there is not as much buzz about radio, I don’t think it is losing out. It has developed a unique role in the communication mix, which straddles ATL and BTL. Advertising support on the medium has been growing at 11 percent over the years.”

     

    Ashit Kukian

    Increase in FDI Limits: Low impact

    Media owners are of the view that increase in FDI in radio would not really impact the sector, unlike retail where the proposal for FDI in multi-brand retail has raised a storm. The common belief is that not many foreign players would be interested in the medium because of low profitability.

     

    Mr Panday says, “Remember, FDI only enters sectors where there is profitability and where the regulatory regime is favourable and stable. Today, most radio broadcasters are barely hitting EBITDA break-evens. This, after half the license period of ten years, is already over. I personally feel that the higher FDI/FII limit will help increase trading in listed radio stocks like ENIL and RBN, but apart from that, the impact might not be that high.

     

    Ashit Kukian, COO and President, Radio City, agrees, “The increase in FDI in radio sector from 20 to 26 percent is not really going to make any dramatic impact on the industry.”

     

    Vinish Joshi

    Slowdown: Whither goes Radio?

    While FM in India continues to struggle, impact of the slowdown, interestingly, on radio, as per the expert opinions might be the least, courtesy its local content. As per Mr Panday, with a slowdown in ad spends, the overall ad industry is unlikely to grow at more than 5-8 percent. His belief is that radio may grow slightly higher at 10-12 percent. “Almost all sectors are seeing a slowdown. We attributed the slowdown in the 1st quarter to the higher spends in the preceding 4th quarter on account of the cricket. However, the 2nd quarter also has been weak,” he says.

     

    Vinish Joshi, GM, Mediacom, too believes that radio might see a higher percentage growth than other media – largely due to its reach and content. He says, “Increasingly FM-enabled mobile phones are driving radio growth in India and phase III is expected to extend radio’s reach to 294 towns and 839 stations. If any medium stands to gain from this slowdown, it is radio, as during the periods of slowdown, marketing activities get more focused. The concern remains on accountability, as marketing will also be more accountable during this period and comprehensive measurement tool for Radio industry will be critical.”

     

     Mohit Joshi

    Measurement currency: A catch-22

    Indeed, the tighter times lead to a lot more stress on RoI, and measurement currency becomes very important. The radio players feel that there is need for a more robust radio measurement system. Mr Panday says: “The present system is a diary system which has many flaws. What we need is an electronic measurement system which accurately captures listenership. We also need more sample sizes to better capture the heterogeneous habits of our cities.”

     

    This sentiment of the media players is shared by media planning and buying fraternity. While, they agree that attempts being made to capture a larger listener base are commendable, they believe that it needs to broaden further.

     

    Mohit Joshi says, “Effort is already on for increasing the coverage of the network of the current Radio Measurement systems. Today, when we have radio stations across most of the key cities, the coverage also needs to mirror that growth. The better the data, the easier it would be to establish the role of Radio.”

     

    It would be interesting to find out how much is the fraternity ready to invest in improving the measurement system and currency. It is a known fact that research and measurement is cost-intensive. With RoI being an issue, most of them might find it difficult to make a major investment in anything.

     

    FM stations: Same, same – no different

    Radio, at the moment is suffering from me-too syndrome – which to a large extent can be attributed to investment constraints. There is definitely a need for differentiation – enter localised communication.

     

    Mr Kukian says, “Radio as a medium has the ability to create customized communication for pocketed audiences and impact millions of Indians due to its wide coverage and personal connect. This coupled with the medium’s innovation quotient gives it one up over other media in terms of fulfilling advertisers’ requirements.”

     

    Vinish Joshi shares a similar opinion, but he qualifies, “Inserting rapid-fire weather forecasts and traffic reports is just providing minimum local content. Local radio, by my definition, is the real interaction of radio personalities, announcers, the people on the air, with listeners both on and off the air. As long as radio maintains its local presence, something that other syndicated forms cannot provide, there will always be a need for its services.”

     

    Unfortunately local content on radio, largely restricted to traffic reports and contests, seems to be similar on all the stations. The reason for this, yet again, is operating costs and limited number of stations. The game might change once there are more radio stations post Phase III.

     

    Mr Panday states, “Very little content differentiation will happen unless more frequencies are released. Let’s take an example. Suppose only 10 TV channels were allowed by law. Which channels would exist then? My guess is that the 4-5 GECs would still exist, there would be 1-2 news channels and 2-3 other channels. The reason for so much content differentiation in TV is that there are so many channels. The second reason is that broadcasters are allowed to own and broadcast several channels, so that the cost of operating smaller format channels is reduced.”

     

    He continues, “In radio however, we suffer from restrictions on both the above mentioned requirements. There are only 7-8 channels in the major markets and broadcasters are allowed to operate only one channel per market. The Phase-III regulations are going to relax the second condition, but till the number of channels increases significantly, we cannot expect much content differentiation. And if the auctions happen the way they are planned – e-auctions for one frequency in Delhi and two in Mumbai – then the license fees will shoot up and niche formats will become unviable. The government needs to release more spectrum BEFORE auctions are conducted. We have even given them a formula to do this – just reduce the “separation” between two adjoining radio channels from the 800 kHz at present to 400 kHz.”

     

    If the separation between two adjoining channels is helved, the number of channels would double – broadcasters will be able to compete better with TV and print, the government will get more license fees through auctions. And it just might help in increasing FDI investments in the sector by raising the bar and the competition.

     

  • Is FM radio losing out? Media agencies have their say.

    RAMcheck: Media agencies on new FM listenership numbers

    By Robin Thomas

     

    The latest RAM data on radio listenership for the month of September to mid-October has thrown up a few surprises in radio listenership. New leaders have emerged in cities that were once strongholds of their rivals. Barring Kolkata where Radio Mirchi continues its leadership position, the remaining three markets – Mumbai, Delhi and Bengaluru have new No. 1s.

     

    Take Mumbai for instance, once a Radio Mirchi bastion, the latest RAM figures (category: all people 12+, all places of listening, shares) show Radio City as the number one private FM station in the city, slightly ahead of Radio Mirchi. However this time (i.e. week 38-42, 2011) Radio City had to share the No. 1 slot with the government owned FM radio – AIR FM2-Gold. Bengaluru where Big FM held its number one status for a very long time is now overthrown by Radio City. In Delhi Fever FM has become number one taking over from AIR FM2- Gold, Radio Mirchi which was number one in the city for very long time has slipped to number three position. These figures are according to RAM, All People 12+, all places of listening and all daypart (i.e. Sunday to Saturday 12 am to 12 am).

     

    In addition to these developments we find that when we compare week 35- week 38, 2011 (last week of August to 1st three weeks of September, 2011) and week 39- week 42, 2011 (Last 2 weeks of September and 1st two weeks of October, 2011) not all FM stations have witnessed growth in their listenership. When asked whether FM stations have reached a stagnation point in listenership, Mr Janardhan Pandey, Associate VP, Mudra Max explained, “It has not reached a stagnation point, but a period of stabilization. To further increase listenership, FM stations will have to take the quality of content and programming to the next level along with higher-level product promotions.”

     

    Mr Ajay Rao, Vice President, Dentsu observed, “FM stations do not have novelty working for them any more. It is today a force of habit for people who find themselves without a smartphone to keep them going. For the young people FM is losing out to other more engaging past times. Can one differentiate basis the content? Listeners tune in for music and switch channels during breaks.”

     

    AIR FM2- Gold which has been growing strong in listenership particularly in Mumbai and Delhi where it has emerged as a strong number two contender. What remains to be seen is whether this trend continues or will it see a decline or stagnation in listenership. Media planners are however of the view that since AIR FM2- Gold offer only specific contents it is not considered as often as the private stations. Mr Narendra Kumar Alambara, Vice President, Starcom Chennai was of the view that, “Since the entertainment content is limited in AIR, the advertisers do not consider AIR as often as compared to the private stations.”

     

    “AIR FM- Gold has been consistently delivering impressive numbers, this suggest that the music is most important content of a radio station and RJ/ innovations and promotions alone cannot keep you on top,” said Mr Janardhan Pandey.

  • Radio Audience Measurement (RAM) on December 2 released its latest radio listenership figures for Week 35-38 and Week 39-42. Some highlights

    RAMcheck: Some surprises in 4-metro stats for Aug to mid-Oct

    By Robin Thomas

     

    On Friday, December 2, Radio Audience Measurement (RAM) released its latest radio listenership figures for Week 35 to Week 38, 2011 (last week of August to 1st three weeks of September, 2011) and Week 39 to Week 42, 2011 (Last 2 weeks of September and 1st two weeks of October, 2011). RAM covers four key metros – Mumbai, Delhi, Kolkata and Bengaluru.

     

    According to the latest RAM data, for listeners 12 years and above, from all places of listening and according to share value, Radio City, Radio Mirchi, Big FM, Red FM, Fever FM, Radio One, Oye! FM are some of the top FM stations in the big four metros.

     

    Mumbai:

    In Mumbai Radio City emerged as the number one FM station in Mumbai, followed by AIR FM2- Gold, Radio Mirchi, Big FM, Fever FM, Red FM, are the top six FM stations in Mumbai. The other FM stations in Mumbai include Radio One, Vividh Bharati, AIR FM1 Rainbow and Oye! FM.

     

    If we compare growth of FM listenership in terms of shares from Week 35 to week 38, 2011 and Week 39 to Week 42, 2011 we find that Radio City, AIR FM2- Gold, Big FM, Fever FM, Radio One and Vividh Bharati are the only FM stations to have witnessed growth. Interestingly, AIR FM2- Gold emerged as the fastest growing FM station, with a share of 12.59 per cent. Radio City, number one FM radio station grew 0.63 per cent in shares. Big FM, the fourth most popular FM station as per the latest RAM figures remained stagnant whereas Fever FM saw a marginal growth of 0.88 per cent. Radio One also saw good growth of 6.25 per cent.

     

    The FM stations which saw a decline in their listenership share are Radio Mirchi, Red FM, AIR FM1- Rainbow and Oye! FM. While Radio Mirchi is the third most popular FM station in Mumbai after AIR FM2- Gold then Radio Mirchi saw a decline of 7.19 per cent. Oye! FM on the other hand saw a decline of 11.43 per cent in their listenership share.

     

    Delhi:

    The RAM figures for Delhi too have thrown some interesting figures. Fever FM emerged as the number one FM station from week 39 to week 42 (i.e. Last 2 week of September and 1st two week of October, 2011). Fever FM took the leadership position from AIR FM2- Gold which was number one in Delhi from week 35 to week 38, 2011 (i.e. (last 1 week of August to 1st three week of September, 2011).

     

    Ranked one is Fever FM with a share of 20.7 per cent as on week 39 to week 42, 2011. Fever FM is closely followed by AIR FM2- Gold with a share of 20 per cent. Ranked three is Radio Mirchi with a share of 16.7 per cent and Red FM with a share of 11 per cent as on week 39 to week 42, 2011. While Big FM and Radio One received a share of 5.6 per cent and 5 per cent respectively, Oye! FM and Hit FM received 3.6 per cent and 2.1 per cent share respectively.

     

    The FM stations that witnessed growth in their listenership share (i.e. comparing ‘Week 35 to 38, 2011’ and ‘Week 39 to 42 2011’) we find Fever FM, AIR FM2- Gold, Big FM, Radio One, AIR FM1- Rainbow, Hit FM and Vividh Bharati are the FM stations to have witnessed growth. Fever FM which leads Delhi in terms of listenership share grew 5.61 per cent, Big FM grew 5.66 per cent, Hit FM grew 5 per cent, AIR FM1- Rainbow grew 4 per cent. Radio One emerged as the fastest growing FM station in Delhi with a listenership share of 5 per cent as on week 39 to 42, 2011 which is a growth of 8.70 per cent as against 4.6 per cent share on week 35- week 38, 2011.

     

    Radio Mirchi, Radio City, Red FM and Oye! FM on the other hand saw a decline in their listenership share (i.e. when we compare Week 39-42 as against week 35 to 38, 2011). Fever FM, AIR FM2- Gold, Radio Mirchi, Radio City, Red FM, Big FM, Radio One and Oye! FM are the top 8 FM stations in terms of listenership share.

     

    Bengaluru:

    Radio City continues its leadership position in Bengaluru, it is closely followed by Radio Mirchi, Big FM, Red FM and AIR FM1- Rainbow are the top five FM stations in Bengaluru.

     

    Big FM which held the number one position for a long time in Bangalore is now ranked three after Radio City and Radio Mirchi. However with a listenership share of 18.3 per cent (on week 39 to week 42, 2011), Big FM witnessed a marginal growth of 0.55 per cent as against its listenership share of 18.2 per cent (from week 35 to 38, 2011). The other FM stations to have witnessed growth are Radio City, Radio Mirchi, AIR FM1- Rainbow and Radio Indigo. Radio City received a share of 24 per cent on week 39 to week 42, 2011 as against 23.6 per cent from week 35 to 38, 2011, a growth of 1.69 per cent. Radio Mirchi on the other hand grew 3.65 per cent after receiving a share of 22.7 per cent on week 39 to 42, 2011 as against a share of 21.9 per cent from week 35 to 38, 2011.

     

    The other private FM stations in Bengaluru are Red FM, Radio One and Fever FM which received a share of 11.6 per cent, 5.5 per cent and 5.4 per cent respectively. Red FM for instance in Bengaluru received a share of 11.6 per cent (from week 39 to 42, 2011), week 35-38, 2011, the FM station received a share of 12.3 per cent, a decline of 5.69 per cent. Radio One declined 5.17 per cent after receiving a share of 5.5 per cent on week 39 to 42, 2011 as against 5.8 per cent share on week 35 to 38, 2011. Fever FM on the other hand received a share of 5.4 per cent (on Week 39 to 42′ 2011) as compared to its share of 5.8 per cent on week 35 to 38, 2011, a decline of 6.90 per cent.

     

    Kolkata:

    The top five FM stations in Kolkata are Radio Mirchi, Big FM, Friends FM, Aamar FM and Red FM. While Radio Mirchi continues to lead the Kolkata market with a share of 23.1 per cent (for week 39 to 42, 2011), the second most popular FM station as per week 39 to week 42 data, Big FM is a distant second with a share of 17.4 per cent. Friends FM maintains its third rank in Kolkata with a listenership share of 15.5 per cent, Aamar FM came next with a share of 10.5 per cent and rank five is Red FM with a listenership share of 9.3 per cent.

     

    The other private FM stations in Kolkata are Fever FM, with a share of 8.5 per cent, Oye! FM with a share of 3.9 per cent, Radio One with a share of3.8 per cent, Oye! FM received a share of 3.9 per cent and Power FM received 1 per cent.

     

    Radio Mirchi, Big FM, Friends FM, Red FM, Oye! FM, AIR FM1- Rainbow, Akashvani and Vividh Bharati are the only radio stations to have witnessed growth in the week 39 to week 42 data as against their numbers in week 35 to week 38.

  • While the FM phase II may have been well received by the industry, all FM stations have reported break-even. Smaller FM stations are more likely to face huge challenges ahead.

    The lesson so far for FM players

    By Robin Thomas

     

    FM Phase-I Policy was approved by the Government in July, 1999. Under Phase I policy, a total number of 21 FM radio channels are operational in 12 cities. FM Phase II on the other hand has a total of 336 channels in 90 cities across the Country whereas the much awaited 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 to this Foreign Direct Investment (FDI) in radio has been raised from 20 per cent to 26 per cent, if allowed, multiple frequencies will bring new genres in radio leading to content innovations, and the overall advertising pie is also expected to rise from the estimated 5 per cent.

     

    While the FM phase II may have been well received by the industry, all FM stations have reported break-even. Smaller FM stations are more likely to face huge challenges ahead especially since the music royalty issue is yet to be resolved. Overbidding in phase I and II could be just one of the issues, MxMIndia asks some of the industry players what lessons the FM radio industry can learn in Phase III from the earlier Phase I and II.

     

    Mr Prashant Panday
    Mr Rana Barua
    Mr Harrish M. Bhatia
    Mr. Harshad Jain
    Mr. Ashish Pherwani

    Mr Prashant Panday, CEO, Radio Mirchi observed, “One main lesson from Phase I and II – Do not bid so aggressively that you can never recover your investments. Those who bid sensibly in Phase-II (very few) are making PAT profits this year. Those who did not are at best making EBITDA break-even. Some are still making EBITDA losses. These people sometimes feel overjoyed that they have turned EBITDA positive; but fail to realise that the returns on investments only start after you turn PAT positive. There are barely 4-5 years left for the licenses to get over. If a company is not PAT positive yet, it has no hopes of generating any decent ROI. This is the main learning from the first two phases.”

     

    “The 2nd learning is about being able to bring brands. But to build brands, companies need profits. So again, if you have bid wrongly, you don’t have enough resources to build brands. That’s what our research shows every quarter. That except for Mirchi and maybe one-two other brands in some specific cities, no other radio station has been able to build a brand. They may have listenership, but they still don’t have a brand. There are no attributes that people assign to these brands. No values that the brands stand for. Without a solid brand, listenership suffers. Pricing suffers. And long term profitability suffers” he added.

     

    In an earlier interaction with MxMIndia, Mr Rana Barua, COO Red FM said, “One of the critical learning that a lot of us had in phase I and II is not to overestimate the potential of the market. The biggest challenge that lies for all of us is knowing that uncertainty has become such a huge thing today, therefore I think a cautious approach is going to be extremely critical.”

     

    According to Mr Harrish M. Bhatia, CEO, MY FM, “What was witnessed in Phase 1 and Phase 2 is totally different than Phase III. The Phase-3 rollout will increase radio penetration, making it a pan-India medium, reaching tier II & III towns. The most important thing that the radio players need to keep in mind is to bid realistically.”

     

    Mr. Harshad Jain, Business Head, Fever FM had a different viewpoint, he said, “The regulatory amendments in phase III are ultimately expected to facilitate industry growth.  FDI has been increased and might drive some additional investment in the industry. I do believe that FDI should have been raised further to actually fuel growth and overall industry development. Another key change is to allow multiple frequencies in the same city but we will have to wait and watch how this rolls out in practice. Another key shift in policy is the e-auctioning route as this will take the license fee to new highs, especially for frequencies in metros like Delhi and Mumbai.”

     

    Mr. Ashish Pherwani, Associate Director, Advisory Services, Ernst & Young, has seven point suggestions to the FM players, some of them are  the key aspects that all radio companies need to address vis a vis phase III are: –

     

    1. “Which licenses to bid for-  How well the new stations complement the existing bouquet of stations in terms of tactical sales, the future revenue potential from these stations both from the point of view of generating local revenues and adding on to the revenue generating ability of other stations, etc.”

    2. “Bid values- The bid value should logically be based on the revenue generating ability of the station over its license period, and expected costs.

    3. “Alliances.  Some radio companies need to consider which stations to bid for on the assumption that they will form alliances with other networks that together will provide advertisers with national, regional or state-wide reach.  In addition, radio companies with existing ad sales.” In addition to these, “Trade licenses that add value to other networks, Using FDI effectively, Build better MIS and control mechanisms to prevent operational chaos and Focus on People” are some of his suggestions to the FM players.

     

    As one of the industry player said FM Phase-III is not the same as Phase I and II, true, but it is bound to have challenges of its own perhaps even more bigger and tougher. MxMIndia will focus next on the challenges for FM radio in Phase-III.

  • FM stations experiment with content to go beyond traditional programming and give listeners a differentiated experience.

    FM stations go for out-of-the-box content

    By Robin Thomas

     

    Often criticized for airing uniform content across channels, FM radio stations have already begun exploring content that goes beyond just regular Bollywood music. Unlike print, television or the internet, radio in India continues to be a highly regulated medium. Contents across various radio channels are restricted to music, though multiple frequencies if allowed by the government is likely to change this. News on FM radio has already been given a nod by the government of India, but not everyone in the industry is chuffed about this development as it restricts news to be sourced only via AIR (All India Radio).

     

    Nisha Narayanan

    Meanwhile, even as the ups and downs over restrictions continue, FM stations are leaving no stone unturned to offer their listeners out-of-the-box content, each station wanting to sound different from the other. Fever FM for instance, has a mythological show, ‘Ramayan’ with huge fanfare and ‘From Russia with Love’, an infotainment programme. Radio Mirchi airs ‘Sunday Suspense’ in Kolkata, wherein the RJ (Radio Jockey) narrates stories written by authors like Satyajit Ray, Saradindu Bandhopadhyay among many others. Red FM on the other hand initiated shows like ‘Red Arrest’ and ‘The Mental Show’ in Delhi and Mumbai respectively.

     

    Ms Nisha Narayanan, Senior VP Projects & Programming, Red FM said, “Red is known for innovative programming. In the present, the two most innovative program initiatives are ‘Red Arrest’ in Delhi and ‘The Mental Show’ in Mumbai with Suresh and Hoezay. The treatment of both is edgy, humorous, shocking, tongue-in-cheek, and the response has been phenomenal. They both have been the talking point of Delhi and Mumbai Stations respectively and have gained tremendous traction. The mails , calls , responses have been consistently pouring in – and it’s not a surprise!”

     

    Mr Sriram Kilambi, Marketing Head, Radio Mirchi stated, “Sunday Suspense is an amazing show in Kolkata. It is produced in-house by our Mirchi Team in Kolkata. The show has many firsts to its credit – being the first in its genre – and has been supremely well received. The show is targeted at the general Kolkata public who is afraid that the current generation will start to lose touch with Bengali literature. This show has been one of our biggest successes thus far.

     

    Sunil Kumar

    “Sunday Music Company on the other hand is a show in Mumbai that basically talks to those behind the music of the latest release. So, while you get a lot of movie reviews, this is a one-of-a-kind music review that tells you about the music, its makers etc. Sundays have been very strong for Radio Mirchi, largely thanks to innovative shows like the SMC.” he added.

     

    According to Mr Sunil Kumar, MD, Big River Radio, “FM stations have experimented a lot with music content, and they are doing a good job by offering differentiated content within music itself. Today listeners are able to identify their favourite FM stations and very soon there will be further differentiation in content, with or without regulations.”

     

    Ashish Pherwani

    Mr Ashish Pherwani, Associate Director, Media & Entertainment, Ernst & Young observed, “Content innovation in FM radio still has a long way to go, as currently every other FM station is plays popular music with little bits of innovation here and there. I believe content innovations will actually happen once multiple frequencies are allowed which is likely to happen in phase III.”

  • The Anchor: Devraj Sanyal on the 10 songs you’re sure to hear on FM radio

    #1Satyameva Jayate: From the most awaited album SuperHeav’… It’s the track which brings the nation together… has that anthemic feel.

    #2 Lady Gaga, The Edge of Glory: A must-have artist in your playlist, the biggest pop icon the world is gaga over.

    #3 Enrique Iglesias, Dirty Dancer: The most loved artiste in India, one of the highest selling in the country.

    #4 JLO, On the Floor: The biggest club hit in recent times… gets JLo back on the music scene.

    #5 Raab Rakha, Love Breakups Zindagi: Very young and vibrant song, a direct connect to today’s youth.

    #6 Jessie J, Price Tag: Purely for its lyrics… It’s not about money money money.

    #7 Watch The Throne, I love you so: A must-have for hiphop fans – two hiphop idols in one album!

    #8 Pal Pal Dil Ke Paas, Blackmail: Played on all the radio stations on their classic shows… Kishore Kumar is definitely hamaare dil ke paas.

    #9 Yeh Dosti, Sholay: An evergreen friendship track.

    #10 Senorita, Zindagi Na Milegi Dobara: Very cool, very young, from a new-age young film.

     

    Devraj Sanyal is the Managing Director of Universal Music India