[cr-india] Good prospects ahead for FM radio industry: Study

[Nookaraju]

Good prospects ahead for FM radio industry: Study

CHANDAN BANERJEE

Posted online: Thursday, June 14, 2007 at 0117 hours IST



KOLKATA, JUNE 13 :  The Indian radio sector may become a Rs 1,200-crore
industry by 2010, according to a study conducted by the Federation of Indian
Chambers of Commerce & Industry and PricewaterhouseCoopers.



The present annual advertisement budget for media in India is around Rs
12,000 crore and the FM radio's share in it is a meagre 3%.



The share would grow substantially over the next 10 years, as at least 338
FM channels will be operational by then, the study says.



According to a Kolkata-based FM executive, it was a matter of experience for
advertisers as they spent money for publicity of their products or services
during 2003-04, when four private FM channels were simultaneously launched
in Kolkata.



But soon advertisers saw merit in it. "We often come across clients who want
to make deals for an unlimited period. But, it is not our policy," a Red FM
official said.



Amar and Power FM had clocked revenues of Rs 6 crore each in 2005-06, while
it was Rs 10 crore each during the previous fiscal.



Radio Mirchi had earned Rs 5 crore in 2005-06 from the Kolkata market. Its
total revenue from seven stations (New Delhi, Mumbai, Chennai, Kolkata,
Ahmedabad, Pune and Indore) was Rs 46 crore in 2006-07.



For the year to March 31, 2007, Red FM's revenue was Rs 8 crore from
Kolkata, which is Rs 3.2 crore higher compared with 2005-06.



On the other hand, the Indian national public service broadcaster, All India
Radio, is suffering from acute financial crunch owing to its age-old
mind-set and lack of aggressive marketing strategy.



As a result, AIR's FM channels—FM Rainbow and FM Gold—do not get enough
patronage of advertisers.

http://www.financialexpress.com/fe_full_story.php?content_id=167123
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