Indian Media Pie

GroupM study reveals that Radio takes 3% of the Indian media advertising pie, TV at 36% while newspapers still keeps the lions share.

Mint reports:

The media story in India is very different from that in the West. traditional media such as newspapers and magazines are holding their own here in the face of new media, unlike in many countries where print has been losing readers, and thereby advertising revenue, to the Internet. Both the newspaper and the television — the two biggest businesses in the media market here — are witnessing high growth rates, and are the primary choice for advertisers.

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XM versus Sirius

An excellent commentary on satellite radio in the US (XM-Sirius merger) and observations on new technologies by Bob Leftsetz.

Let’s just limit our discussion to the car. That’s where radio is king. Sure, people listen at home, but the real money, the main activity, is in the automobile, where you’re a captive audience.

Now radio has been threatened not so much by the CD or the iPod, but by the cell phone. A great number of people are not listening to music in the car at all. They’ll only stop talking and start listening when what’s coming out of the speakers is more interesting than the blather coming out of their hand-set. As for the CD…that’s passe. As for the iPod, it never plays anything you don’t know. And you want to hear what you don’t know, you want to be exposed to new things, it’s human nature.

[…] But satellite radio. It’s in all new cars. Has been in most for years. The key is to get people to tune in, to pay for it.

Read more…

Satellite Radio in India to share 4% of revenue with the Government

The Indian telecom regulator TRAI has recommended a cap on Foriegn Direct Investment of 76% and 4% revenue share with the government for Satellite radio in India.

Economic Times reports:

Currently, World Space is the only player in India to offer such a service. On the implementation of the new policy, WorldSpace will not only have to find a local partner to hold a 26% equity stake in its Indian operations, but will also have to share 4% of its revenues with the government here.

Radio Indigo

In Bangalore, Radio Indigo is one FM station that tries to be different, by playing music that differentiates it from the rest (Western pop/rock, Classic rock, Jazz and World music). Before hitting the FM airwaves, Indigo had a presence on the Worldspace satellite radio in the early 2000s. Much of my Sunday mornings during that time was largely devoted to Indigo, which had some great programs on weekend. While other channels have revised their genre of music for more foot print and ad revenues, Radio Indigo has completely stuck to its roots, thanks to the visionary owner Rajeev Chandrasekhar.

Mint has profiled Mr. Chandrasekhar in its weekend edition, Lounge.

Chandrasekhar’s involvement in the media will also extend to a 2-hour programme
that he will host on his FM station. It will “play blues, contemporary rock…” It
won’t just be about the music he likes, Chandrasekhar says. “If the point of
having a radio station is to play only music I like, it would be cheaper to buy
a music player rather than invest Rs35 crore in running a station,” he adds.

India needs College Radio, Talk radio

College radio, run by students, has been a highly popular concept in the west and elsewhere, but hardly found in Indian college/university campuses. This is traditionally broadcast over FM, using low power transmitters. In Indian educational institutions, radio clubs were largely restricted to a bunch of Amateur Radio (ham) enthusiasts – no, I am not calling them geeks- with equipment and a club license to operate this (on shortwave), but nothing of the sort of producing programs which is of interest to the student community.

The BJP Government took the initiative of granting radio licenses to educational institutions and the first Campus station in India was set up by Anna University of Chennai, in Feb 2004. Couple of other universities followed suit, and I would be interested in knowing their current situation.

The absence of a tradition of growing up with a campus radio station would probably be one reason why talk radio is not so popular in India. All India Radio’s programming has a large share of spoken word content, but it is the music programs that have higher listenership.

Aadisht has nearly summed up what is wrong with the Indian FM broadcast scene and how it can be improved.
To be different and to target a particular segment, staying away from the expensive music rights, someone has to start a good FM urban talk radio station in India. To start with, prime time shows should be more localized (city events coverage, issues discussion, interviews etc.) and other time slots can be from sourced programs from the west, becoming an affiliate radio station (Currently Radio Indigo in Bangalore sources programs like Casey’s Top 20) and there are many content rich radio stations out there that are ready to offer programs (which should also make sense to the Indian listeners) for free.

Then again, is it worth starting a niche talk radio station for the heavy license fee* you pay to the government? The revolution in programming in FM spectrum in India can happen only if the government reduces the licensing fee. Else, every other broadcaster would go the safe track of playing popular music, which is happening now.

Also, Indian private broadcasters can look forward to a day when they can broadcast news over FM, which is currently restricted by the government. There is a whole array of international broadcasters broadcasting news to India over Short wave, but the government knows the level of popularity of shortwave radio in India and understands that it can’t be much of a “threat” to the nation. Worldspace digital satellite radio broadcasts the audio streams of the Indian News TV channels NDTV and CNBC India– but nobody in the broadcast ministry seems to care about that! Well, the restriction applies only to “News productions made only for Radio” over “FM”!

*The FM broadcast license fee in India is probably one of the highest in the world. From a Mint article of Oct 2007, it seems that bids (one-time entry fee – for over a period of 10 years) for stations in New Delhi and Mumbai touched Rs 30 crore (close to 750k USD) each.

Radio v/s TV

Why do you say Radio is better than TV?

Here is one:

Barry Campell of enveranche comments on the China earthquake coverage on NPR.

But some things are still best conveyed by radio. It can be a tremendous medium for storytelling.

[...] The story is about 12 minutes long, and is so evocative of the horror on the ground that it is, candidly, really hard to take... but it's also one of the best pieces of radio journalism I think I've ever heard.

NPR link of the coverage by Melissa Block here.

A jollygood show!

This blog is dedicated to one of the most powerful medium of communications - Radio. I am a radio junkie, and it is radio that shaped my worldview, if not my life. I live in India, a country where radio broadcast rights were exclusively held by the state till mid 90s, with one or two stations in a region - the only relief being the shortwave radio (during my school days).

Though not in a full blown way, and thanks to technological advances, I too witnessed the radio revolution in India. Now I listen to NPR on Worldspace, BBC Radio 2 on the internet, and the privately held Radio Indigo FM on my car Radio in Bangalore.

Well, if I can sustain the enthusiasm to keep this blog alive, you'll find radio news, links, views, fun stuff and some nostalgia here.

About the title: If you are not much into early Woody Allen movies (which did not have any steamy scenes like the recent releases), the title of this blog is from the fantastic Woody Allen movie of the same name - Radio Days - Allen's tribute to an affair that lasted long - Radio.