2010 will be turning point for FM radio, asserts Uday Chawla, General
Secretary, AROI
The PriceWaterhouseCoopers (PwC) Indian Entertainment and Media Outlook 2009
report says that in the year 2008, the Indian radio industry had grown at a
CAGR of 36.4 per cent over the last four years from 2004 to 2008. While music
royalty is still a critical issue, in conversation with exchange4media.com,
Uday Chawla, General Secretary, AROI said, “Phase III will be rolled out
shortly, the Ministry, I believe is ready to move to cabinet for approval and
announce it shortly and we officially welcome phase III and the sooner it is,
the better.” FM phase III will see around 700 additional frequencies for
private FM players and introduction of FM stations in 90 new cities.
Chawla also said that phase III would infact, be a turning point for FM radio
industry in India. “Phase III rollout is also likely to see sports commentary,
news and current affairs being allowed, this will certainly bring a sea change
in the industry, as a result it will follow the same route as the television
hence the year 2010 is expect to be the start of a big revolution in the Indian
radio industry. FM radio can’t be just dependent on music alone, it too like
television needs mix content. Radio in India is already poised for a big leap,
it has already overtaken magazine and should soon reach the level of television
in the next few years.”
“We have requested I&B Ministry that news on FM radio should be free and not
limited but, the ministry’s point of view is to let that happen in stages. So,
we can expect multiple sources or free news also in few years. I believe that
having no news and current affairs at all is infact, worst than having limited
sources. So, news thorough limited sources is just a start, it will be in
stages, no limit however as far as current affairs are concerned, however AROI
will have its own code of edits. We will be very clear that there shall be no
anti national, anti caste or religion or hurting any sentiments” said Chawla.
Meanwhile, AROI on November 12, 2009 will hold ‘Vision 2010’ in Delhi, it would
be an official radio event. One of the objectives of the AROI event will be to
discuss the vision 2010 for radio industry and to see how it can be made a
landmark year for FM radio expansion in India. Post the conference, the Chawla
observed, “FM radio still needs to evangalise the medium because while the
listeners know what radio is all about, whether in metros or villages however
advertisers need to know more about the medium, that its able to reach
customers much faster and have deeper penetration. I believe, the radio
industry in the next three years will be between Rs. 5000 and 10, 000 crores.
It will become a very major player and that’s why it becomes all the more
important that the government makes the industry a more level playing field and
announces the phase III.”
Allowing news and current affair, sports commentary provides content
alternative for FM radio as a result, the dependency on music reduces. “AROI is
looking at evolving the industry into a major player in the Indian media
market, and with regards to the music royalty issue, the matter is now
subjudice” concluded Chawla.
Source: © exchange4media 2009
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