Radio industry to see 32% growth
Mumbai -- On March 23, India's Economic Times reported that India's radio industry is projected to post a robust growth of 32 per cent over the next few years to touch Rs.12 billion (nearly US$270 million) in revenues by 2010 on the back of a robust economy and easing of stiff investment rules. The study was conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and PricewaterhouseCoopers.
The article highlights:
- radio, mainly FM radio stations, garners just 2 per cent of total ad spend across all media now. In five to 10 years this figure would reach 32 per cent with 338 new radio licences being offered.
- The new FM radio licences cover about 91 cities, most of which were till now serviced only by the state broadcaster (All India Radio).
- government's decision to move to a low revenue-share regime in contrast to the earlier stiff fixed licence fee regime
- a major boost to the industry, after the government has allowed up to 20 per cent foreign direct investment in the sector
- the investment earlier this year of 4 million pouunds by BBC Worldwide, the British broadcaster's commercial arm into buying a 20 per cent stake in Radio Mid-Day West, a subsidiary of Mid-Day Multimedia, a listed media group that publishes the popular Mid-Day afternoon newspaper in Mumbai.
- similar reasons that attracted Malaysian pay-TV firm Astro All Asia to bid for new radio station licenses with local partners
- the rapid increase in new broadcasters has driven the need for more content to be produced