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NEW DELHI: Even as all the FM radio companies have formed an association,
the smaller and regional licencees are finalising a separate consortium
to collectively tap national-level advertising in a bid to compete
with the big guns.
According to a radio company, which has about 10 licences, but not
a national presence, the consortium will try tapping national level
advertisers by offering more number of stations and volume discounts.
Though the details are yet to be hammered out, this advertising
consortium will be in the form of an entity or an organisation that
will negotiate advertising and rates for its members, while keeping
a small amount as commission on ad deals to fund operational expenses.
More than 40 radio companies are likely to be members of this consortium,
which would aim to keep its advertising rates flexible, depending
on the type of cities a licencee operates in.
The Indian government, while handing out 287 licences in the second
phase till now had put on the block 338 licences spread over 91 cities
categorised as A & A+, B,C and D depending on the population base.
Some of the licences have to go for rebidding on technical ground
of not having found suitable buyers.
The big players include Anil Ambani-controlled Adlabs, HT Media
& Entertainment, Radio Mirchi, Radio City, the Bhaskar group
of newspapers (through Synergy Media) and the Sun TV group.
Meanwhile, it's RIP for Radio Group, formed in the early part of
this decade when FM radio was opened up to private participation.
The new avatar is Association of Radio Operators of India (AROI).
A reluctant co-coordinator of AROI, BAG Infotainment CEO Rajiv
Mishra, admitted to Indiantelevision.com that the association
has been formed and is likely to have its first meeting to chalk
out future plans later this month. Mishra did not hand out any further
details.
Still, as per information available, AROI will be a registered,
non-profit, non-governmental society dedicated to protect the common
and collective interests of its members, a la Indian Broadcasting
Foundation and Indian Newspaper Society.
AROI is likely to have several advisory bodies like after legal
and regulatory issues, technical and other agreements that have
to be signed with government bodies. The executive council will
include a chairman, vice-chairman and secretary-general.
The radio association is also mulling putting a radio ratings system
in place on the lines of TV ratings points. Apart from a small company
that does some viewership and reach measurement for radio stations
in Mumbai and Delhi, nothing is done at a national level.
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