| MUMBAI: Tuning
into the radio industry. The FM private radio industry is gearing up for a massive
expansion. Radio Tuning in-Again, the session at the second day of Ficci
Frames 2006. The panelists emphasized on the government looking at permitting
multiple frequencies including granting of news and current affairs, HR practices,
expansion of listenership and impending base for advertisers and a sophisticated
listenership measurement system. Entertainment Network Ltd
( manages the brand Radio Mirchi) CEO AP Parigi says that the various FM stakeholders
have been hammering that multiple frequencies should be permitted, which would
spur the launch and growth of niche channels in this category. The demand of
multiple frequencies from various stakeholders of the industry seems to be long
pending. Though the regulator does not permit any licensees to own multiple frequencies
in same city, the panelist urges the government to look into the matter. Win
94.6 FM managing director Gautam Radia concurs with Parigi on the government to
provide permission of multiple frequencies, which may witness diversification
in content, which in turn may push the list of listenership. Radia does
not hesitate to point out that if the government grants the authorization of the
same, it will come with 'a rider'. According to him, the government may enforce
the licensees to operate one of the multiple frequencies to cater to the local
listeners by conversing in local languages.The Win 94.6 in Mumbai, had to be shut
down due to the heavy licence fee during the FM radio phase I.
The augmentation of niche
channels is achievable if it is pushed by the market leaders of the industry,
Parigi says, "The niche channels should be supported by the market leaders
and profitable companies in this business during the infancy". He briefly
touches on the aspect of news and current affairs, which have been restricted
to the industry as of now. He says if these restrictions are removed, radio can
educate its listeners on locally relevant information and discussions, besides
having a good mixture of entertainment and news. The industry is concerned
over the lofty music royalties. Recently, the Association of Radio Operators of
India (AROI), a body of FM radio licencees, had decided to petition the government
rationalization of music rights fee, tax sops. Radia mentioned that the soaring
music fee is not affordable by players playing in the smaller cities and towns.
Paragi agrees to the same and is looking at fair music royalties with the launch
of new stations across 91 cities. Big River Radio (India) Private Ltd managing
director Sunil Kumar lay stress on programming, which to him is a 'challenge'.
"The need to develop programmes in 22 major languages and over 100 major
languages/ dialects," he says. Music scheduling software for radio, according
to him is a 'no-no' as it is best suited for western environment. Kumar
believes that the objective of the industry should include amplifying the listnership
and advertisement, establish brand and capture a defined segment. Besides, the
above objectives, the industry has to tactfully combat challenges especially with
respect to the HR practices. Parigi points out that the HR practice has
to designed in such a manner that it 'learn, earn and grown rather than learn,
earn and go'. Retaining and developing talents remains a worry and has to be sought
out with the best HR policy. Besides, the challenges, the stakeholders
are gung-ho about the future, which is identified as the appropriate place in
the galaxy of entertainment. The size of the industry, at present, is pegged at
Rs 3 billion, according to a study by the Federation of Indian Chambers of Commerce
and Industry (FICCI) and PricewaterhouseCoopers. It is anticipated to register
a robust growth of 32 per cent over the next few years to touch Rs 12 billion
(nearly $270 million) in revenues by 2010 on the back of a robust economy and
easing of stiff investment rules. Media planners acknowledge that the advertisement
base of radio is anticipated to surge with the launch of approximately 200 stations,
which is likely to propel the development of the FM category. Insight president
Raj Gupta believes the verdict is positive amongst the media planners. Stating
it as value for money, Gupta indicates, "Radio that has moved from background
to foreground has higher affinity of youth. The youth category products are likely
to migrate to radio." To him, radio will be the new habitat for youth. | 
