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NEW DELHI/MUMBAI: The private FM radio companies will have more room for growth as the government has promised to auction 839 new FM radio channels in the fiscal ended 31 March 2014.
The reach will get expanded with the Finance Minister P Chidambaram stating during his Budget speech that after the auction, all cities having a population of more than 100,000 will be covered by private FM radio services. The government proposes to expand private FM radio services to 294 more cities.
Multiple frequencies will allow for content differentiation, a need of the hour to avoid commodification in the industry and grow listenership for FM radio.
Says Reliance Broadcast Network CEO Tarun Katial, “The budget brings good news for the radio industry, with phase III poised to create optimal reach for the medium. Other benefits like news, networking, current affairs and sports and multiple frequencies will add the necessary fillip to further fuel listenership growth through reach and content diversification and will also drive profitability and revenue through cost optimisation. With deeper penetration, radio can play a key role as a catalyst of social transformation through partnership for CSR initiatives, social causes and Government initiatives, as it reaches where no other medium can because of literacy and cost issues. With expansion to 300+ cities, it stands to reach 90% of the Indian population, making it truly, a common man’s medium!”
A swing in mood is evident. Private radio companies have been waiting for the Phase III of FM radio expansion to kick-start. Although the government had announced plans to commence Phase III of FM radio expansion in FY13, Information and Broadcasting Ministry sources said this was held up because of some technical issues, which have got sorted out of late.
Sharing the optimism, Ernst & Young partner Ashish Pherwani says, "It is great that so many more radio licenses will come up for auction - this will give a boost to the Indian FM radio industry. Pricing and auction methodology will play an important role."
The road to profitability, though, will depend on how sane the bidding is for the licences. As for now, FM radio broadcasting companies will have to line up substantial investments as they prepare to pick up licences to expand their footprint.
"Radio operators will have to be cautious that they don't go the 3G spectrum way. But yes, Phase III as a whole will be good for the sector," says a media analyst.
Indiantelevision.com > News Headlines > Budget: Phase III FM radio auction to take place in FY14
Note:- I don't find a section to post Radio related news. If there is any, mods, please move this thread there
The reach will get expanded with the Finance Minister P Chidambaram stating during his Budget speech that after the auction, all cities having a population of more than 100,000 will be covered by private FM radio services. The government proposes to expand private FM radio services to 294 more cities.
Multiple frequencies will allow for content differentiation, a need of the hour to avoid commodification in the industry and grow listenership for FM radio.
Says Reliance Broadcast Network CEO Tarun Katial, “The budget brings good news for the radio industry, with phase III poised to create optimal reach for the medium. Other benefits like news, networking, current affairs and sports and multiple frequencies will add the necessary fillip to further fuel listenership growth through reach and content diversification and will also drive profitability and revenue through cost optimisation. With deeper penetration, radio can play a key role as a catalyst of social transformation through partnership for CSR initiatives, social causes and Government initiatives, as it reaches where no other medium can because of literacy and cost issues. With expansion to 300+ cities, it stands to reach 90% of the Indian population, making it truly, a common man’s medium!”
A swing in mood is evident. Private radio companies have been waiting for the Phase III of FM radio expansion to kick-start. Although the government had announced plans to commence Phase III of FM radio expansion in FY13, Information and Broadcasting Ministry sources said this was held up because of some technical issues, which have got sorted out of late.
Sharing the optimism, Ernst & Young partner Ashish Pherwani says, "It is great that so many more radio licenses will come up for auction - this will give a boost to the Indian FM radio industry. Pricing and auction methodology will play an important role."
The road to profitability, though, will depend on how sane the bidding is for the licences. As for now, FM radio broadcasting companies will have to line up substantial investments as they prepare to pick up licences to expand their footprint.
"Radio operators will have to be cautious that they don't go the 3G spectrum way. But yes, Phase III as a whole will be good for the sector," says a media analyst.
Indiantelevision.com > News Headlines > Budget: Phase III FM radio auction to take place in FY14
Note:- I don't find a section to post Radio related news. If there is any, mods, please move this thread there
