MxMIndia

Tag: North-East

  • Come FM radio phase III, Radio GupShup hopes to further expand to newer markets. Besides, the FM station which has only recently re-launched its website hopes to reach not only the online community, but also the media agencies.

    We plan to expand to newer markets: Radio GupShup

    By A Correspondent

     

    Launched in 2005, Radio GupShup is the radio arm of Purvy Broadcasts Pvt. Ltd. (PBPL). The Guwahati based private FM radio station is said to have its presence in districts of Kamrup, Darrang, Morigaon, Nalbari, parts of Baksa, Udalguri, Barpeta, Goalpara, and Nagaon districts in Assam as well as Ribboi District of Meghalaya and Samdrup Jongkhar in Bhutan.

     

    While Radio GupShup aims to further consolidate its position in the year 2012, achieving break-even may still be a distant dream. Come FM radio phase III, Radio GupShup hopes to further expand to newer markets. Besides, the FM station which has only recently re-launched its website hopes to reach not only the online community, but also the media agencies. In addition to these developments, Radio GupShup is said to be in a strategic sales alliance with Radio Mirchi which not only helps the Guwahati based private FM station (Radio GupShup) get exclusive business assistance but, also helps the FM station to enhance its sales capabilities (Radio Mirchi has its network across 14 states with 32 stations). Currently, Radio GupShup plays Assamese hits, Hindi and English hit music.

     

    In conversation with MxMIndia, Mr S Wassim Ahmed, Station Head, Radio GupShup spoke about the growth targets of Radio GupShup, break-even targets, the FM phase II plans and much more.

     

    Q: How would you rate the year 2011-12 for Radio GupShup?

    The year 2011 – 12 has been good. Both the programming and sales team have done a decent job and we want to further consolidate our position across markets.

     

    Q: What are your growth targets for 2012?

    As I have already said in 2012 we will look forward in consolidating our market position as a name to reckon with in the FM radio in Assam

     

    Q: What are your break-even plans?

    Break even would not happen within a couple of years as the FM radio business is not an easy money spinning business. As the saying goes … FM radio investor got to be a ‘laamba race ka ghoda’.

     

    Q: What are your phase iii plans?

    As and when Phase III happens, we at Radio GupShup would definitely go in for an expansion.

     

    Q: What about the website? How active are you on your website? Any specific plans for the website i.e. listening online radio etc.

    We have recently re-launched our website. This had been our weak point.

    We would be interested to reach out to the online listenership base, provided we have get link or some knowhow. More over as per my knowledge this concept would take some time to materialize because of I & B Ministry’s clearance has not yet happened.

     

    Q: And what was the thought process behind re-launching the website…?

    To keep in touch with the media planners since we need some kind of connect with the people outside the state vis -a- vis our radio sound, kind of shows we have, music we air etc. The media agencies also get a hang of our station. In nut shell it helps to pitch in for national commercials.

     

    Q: Has there been an increase in the ad rates?

    This ain’t petrol price where the rate can go up. In fact the rates at times go down below the Rs.100/spot mark. So you can imagine how competitive the market is.

     

    Q: What about the advertising categories on Gupshup?

    In my opinion the advertisers/media planners have gradually become more aware about the cost effectiveness of FM radio medium. Since TV and Newspaper advertising rates are humongous, Radio advertising as you might know is a good ‘sasta aur tekao’ medium

     

    Q: Do you have a creative and media agency?

    We do not have a creative agency, we produce our own stationalities.

     

  • 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.”