V The sector generates annual revenues worth US$ 49.

5 million and is
growing at around 20 percent annually

V Radio is expected to grow at a CAGR of 15.4 per cent over 2010-14 and
reach to a size of US$ 361.4 million by 2014

V In 2009, total 248 Channels were operational including the 21 channels

operationalized in the phase I. In the financial year 2008-09 the
Government has earned US$ 10.78 million (approx.) from various private
FM stations.

V According to the AROI, the radio industry has made around Rs 2,000
crore of combined investment so far while the advertising revenue
stands at less than Rs 800 crore per annum. The only source of income
for the FM radio industry is advertising revenue
h usiness model is mainly advertising driven
h Impacted by the global recession, growth in the last two quarters of 2008 was
slow because of slowdown in the advertising industry
h A cost effective medium for advertisers as it has more penetration and reach
compared to the traditional print and television
h Controlled by few business groups having sizable stake in different media
properties
h Regulated and recently privatized
h
hase II licensing made the business viable
h as huge infrastructure setup costs
h Oligopolic and witnesses price wars
h Overall growth rate is impressive
 ±



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vrt  lati


h
 5 layrs art f lar ia r s ctrl 3%
rai statis
h
 5 layrs ar % f ttal rv 
h
tal f  rai statis rst a Iia
h l i rtrǯs riary  siss activity
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as III licsi t as i stry xasi
h -13  ~15.% (rct)
 RADIO OPERATORS IN INDIA (248)
Independent/Limited
Network Operators (236)
Network Operators(12)

All India Network Metro Focused Clear Media Ȃ Hit 95 FM

Regional Focused (95)
(130) (11) (1)
Synergy Media
Mid Day Ȃ Radio One
Reliance Ȃ Big FM(44) (North, Central & West) Ȃ My Jupiter Capital Ȃ Indigo (2)
(7) FM (17)

SUN Group-RED FM BAG Films (North, Central &

HT Media Ȃ Fever (4) East) Ȃ Dhamaal (9) ABP Ȃ Friend (1)
(46)

ENL Ȃ Radio Mirchi(32) Malar (TN) Ȃ Hello FM (7)

MBPL Ȃ Radio City (21) Jagran Group Ȃ Mantra FM (7)

 rofil of t   sttio
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alysis of the I
ia
aio I
ustry Ȃ
Competitio

 
 þ

h Radio Jockey (RJ) is the star of the
radio station and drives listenership
to the station.
h
opular RJs such as Malishka, itin
of Red FM command huge salaries.
h RJs and other radio staff want to
stay in the metro market because of
greater opportunities.
h Shortage of talent, such as star
RJs, forces players to poach from
other players driving up the cost of
talent acquisition.
h imited size of industry (only 248
stations across the country) also
poses problems in terms of
attracting talent.
h Cost per advertiser acquisition is
higher compared to TV industry
because of
h decentralized sales in case of
TV, &
h lack of trained sales staff to
handle airtime sales on radio.
h Advertisers uneducated/ill-
informed about the potential of
radio as a medium.
h Royalty payment to music owners
is a maor issue. Varies from 15-
50 in India. Internationally it is 2-
3 .
h 10 year license fee paid to
regulator is a huge sunk cost.
 ±ey vertisi
g Categories
120

100 Outdoor
Animation & VFX
80
rint
Internet Advertising
60
Music
40 Television
aming
20
Radio
0 Films
2006 2009 2014
 ¢  

h  a rt tractry
h  ~1.% (raliz) 5 Ȃ 
h  ~13.% (rct)  Ȃ 13
h rat a lar  r f layrs
h 8 siss 9l is larly avrtisi a
s scriti riv.
h trll y f  siss r s


 

h  a rt tractry
h  ~1.% (raliz) 5 Ȃ 
h  ~13.% (rct)  Ȃ 13
h rat a lar  r f layrs
h 8 siss 9l is larly avrtisi a
s scriti riv.
h trll y f  siss r s
h lal rcssi iact t rt f i stry i

h Iia vrtisi s as a rcta f 
is
.7% rrsti   ttial i t vrall
i stry
  



m hase III lice
si
g to ri
g i
more players (more tha
6 statio
s i
5 cities across the
cou
try)
h FI to ease
iche programmi
g with more mo
ey for evelopi
g targete co
te
t.
h raa ility of lice
ses to allow for co
soliatio
i
the i
ustry through mergers a

acquisitio
.
h iffere
tiatio
to come i
the form of weather, sports,
ews ulleti
s,
ews roacast.
h I
ustry to improve its share from ~ % to more tha
5% of the avertisi
g reve
ue i

ext
five years.
h Big raio compa
ies to go glo al. ece
tly Ȃ
h aio Mirchi acquire Virgi
aio i
the U±
h Big FM lau
che a eicate statio
i
mi
gapore
h Growth to come from locally targete avertisi
g
h More aware
ess a out the meium a
 its pote
tial to result i
etter utilizatio
with the
avertisers.
   


h hreat from i
ter
et avertisi
g which ca
take away ulk of avertisi
g reve
ue
h rolo
ge slowow
will have
egative impact o
the i
ustry
h oyalty issues etwee
raio compa
ies a
 I
ia
erformi
g ights mociety (I m)
coul elay phase III lice
si
g
h Fragme
tatio
i
the i
ustry coul further price wars
h Lack of skille a
 experie
ce professio
als coul erail glo al expa
sio
pla
s
h mig
ifica
t efforts
ee to e i
veste i
eucati
g the avertisers a out raio as a
meium
V arger operators are looking to set up additional stations in cities.

V Initially, these are likely to be in the form of second language formats in

the same city.

V Other formats could also emerge targeting different age groups, cultures
or based on genres of music.

V ews, current affairs, talk based stations are unlikely to emerge over the
medium term, although some programming based on these could be
integrated in the existing music-based stations.
V Ramayan on Fever Radio 104FM.
o :ith veteran artistes like as aseeruddin Shah(Raavan), Anupam
Kher(ashrath),Om
uri (Kaal), Ratna
athak Shah (Manthara) and Jayati
hatia (Kaikeyi), the entire initiative is all set to be a complete theatre of the
mind for radio listeners.

V Swadeshi Movement for an entire week before

Independence ay by the Rǯs of Fever Radio 104FM.
V Cost structures a concern Ȃ high royalty payments, one time
entry fee and restrictions on networking.
V Radio still gets relatively less focus from advertisers
V RAM is available only in 4 cities
V Measuring audience composition is a challenge.
V Standalone stations are finding it difficult to sustain
themselves in the industry
Thank You!!!