FM & Radio in India-sectoral analysis-by sohail sayani

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An indepth study & presentation done by me on the Radio industry in india- 2012 for my MBA program

My Contact: sohail@radio.fm

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FM & Radio in India-sectoral analysis-by sohail sayani

  1. 1. Media & Entertainment: Radio Sectoral Analysis-by Sohail Sayani, PGDM-Business Design, Welingkar,Mumbai , (email- sohail@radio.fm)27/4/12(IndiaSpecific) By SOHAIL SAYANI 1
  2. 2. By SOHAIL SAYANI 2
  3. 3. Key Individuals• "The Father of Radio Broadcasting” Reginald Fessenden• On Christmas Eve 1906, Fessenden made the first radio broadcast in history• Gave a rendition of "O Holy Night" on his violin By SOHAIL SAYANI 3
  4. 4. Major Breakthroughs• First CAR radio• Galvin Mfg Company >> By SOHAIL SAYANI 4
  5. 5. Major Breakthroughs• Satellite Radio• XM, 2001• SIRIUS, 2002 By SOHAIL SAYANI 5
  6. 6. Major Breakthroughs• MP3 files –• 1995• Small Sized files• Easy to Store• Easy to Distribute• Took the internet by storm By SOHAIL SAYANI 6
  7. 7. Major Breakthroughs• RealAudio –• 1995• Continuous Transmission called “Streaming”• ILLUSION of being like Radio Transmission ,but via the Internet By SOHAIL SAYANI 7
  8. 8. Major BreakthroughsShoutcast by WinAmp-• 1998• Justin Frankel and Tom Pepper• 1st free software for MP3 streaming• Anyone can create own web Radio Station By SOHAIL SAYANI 8
  9. 9. Major Breakthroughs• officially named so in 1999 by WEC, the Wireless Ethernet Compatibility Alliance (now the Wi-Fi Alliance)• WebRadio could jump from computers to mobile devices By SOHAIL SAYANI 9
  10. 10. Major Breakthroughs• Broadband• circa 2000• choppy and “buffering”audio moved on to audio to continuous streams of higher fidelity. By SOHAIL SAYANI 10
  11. 11. Major Breakthroughs• Podcasting –• 2004 , iPodderX, developedby August Trometerand Ray Slakinski. By SOHAIL SAYANI 11
  12. 12. Indian Radio History• 1923 :Indias first radio station was established by the Radio Club of Bombay.• By 1927, two privately owned transmitters were set up in Mumbai and Calcutta.• They were later nationalised by the British rule in 1930 and operated under the name Indian Broadcasting Service• 1936:it was renamed All India Radio (AIR) By SOHAIL SAYANI 12
  13. 13. Key Individuals• Ameen SayaniOf “Behnon Aur Bhaiyyon” Fame1952: Binaca Geetmala on Radio Ceylon.Bournvita Quiz Contest(Sri Lanka has the oldest radio station in AsiaBroadcasting was started on an experimentalbasis in Ceylon by the Telegraph Department in 1923, just three years after the inauguration of broadcasting in Europe.)(Filmi music was banned by All India Radio and other Indian radio stations at the timeRadio Ceylon ruled the airwaves in South Asia as millions in the Indian sub- continent tuned into the radio station. People picked up Radio Ceylon broadcasts as far away as the United States of America)15 second audio Source : http://www.planetradiocity.com/musicopedia/music_decade.php?conid=2337 & wikipedia By SOHAIL SAYANI 13
  14. 14. Major Breakthroughs• 1993: All India Radio giving TIME SLOTS to Private Players: Times FM, Radio Mid-day• Re Opening of Private FM Radio in 2001This gave way to the Reincarnation of FM RadioBy letting them own FREQUENCIES rather than time slots on AIR By SOHAIL SAYANI 14
  15. 15. Past Trends (India)Mumbai Example (During Launch year):• GO 92.5 FM: Totally English (SEC A+)• Win 94.6 FM : 2/3rd of the music played was western• Radio Mirchi 98.3 FM : Only few Eng songs• 93.5 Red FM : about 50 % eng music• Radio City 91 FM : Few Eng songs• Fever FM : every 5th song was english• Big 92.7 FM (late launch): Initially started with Hindi By SOHAIL SAYANI 15
  16. 16. Past Trends (India)Mumbai Example (The Shake-up !!)• GO 92.5 FM: Shifts gradually to Hindi (very late)• Win 94.6 FM: Shifts to Hindi (after struggling)• Radio Mirchi 98.3 FM : Realised very early that only BOLLYWOOD will work• 93.5 Red FM : to HINDI• Radio City 91 FM : Hindi• Fever FM : All Eng songs stopped By SOHAIL SAYANI 16
  17. 17. Past Trends (India)Unprofitable:Win 94.6 FM Mumbai: launched in April 2002Went off air on May 27, 2003 to protest against the high license feesCame back on air with HINDI contentIt shut down on April 29,2004 because of high license fees,which were way above the radio stations earning capacityIn the first year (2002-2003) of operation, five FM operators suffered a combined loss of Rs 120 ($ 2.4 Mn) crore against a total revenue of Rs 48 crore. In calendar 2003, only Rs 50 crore ($10 mn) was spent on radio,which is 0.5 per cent ad revenue for the channelsThe channels had to pay a heavy price in terms of a huge licence fee of aroundRs 10 crore annually, with an escalation clause of 15 per cent annually. By SOHAIL SAYANI 17Others survived because they were backed by big media houses
  18. 18. Past Trends (India)Talk Radio Format:•Meow 104.8 FM : India’s first and only WOMEN’s channel•More Talk (approx 15 to 20 mins,then a song)•Initially served Eng music with eng talk•Then replaced eng music with hindi,but continued eng talk•FAILED concept !•Rebranded as OYE 104.8 FM ,with essence of being FILMY•Only Bollywood related TALK & Music By SOHAIL SAYANI 18
  19. 19. Niche TG• Only major station with International Music• Launched in 2006 in Bangalore• Second station in Goa around 2009• Delhi has a station Hit 95 FM with mainly plays eng music By SOHAIL SAYANI 19
  20. 20. Key PlayersFrequency Brand Name Owned by Parent No of Stations/ FDI Company towns/ cities91.1 Radio City Music IVF Holdings 21 + 1 Web Radio Broadcast Pvt. Ltd92.7 Big FM Reliance Reliance 45 Broadcast ADAG93.5 Red FM/ S FM Digital Radio Sun TV 4594.3 Radio One Next Mid-day / 7 BBC MediaWorks Tariq Ansari94.3 MY FM DB Corp Dainik 17 Bhaskar98.3 Radio Mirchi ENIL Times of 32 India104 Fever FM HT Media Hindustan 5 Virgin Times Radio104.8 Oye FM Radio Today India Today 5Various All India Radio Prasar Govt of 280+ N.A.(AM & FM) Bharti India By SOHAIL SAYANI 20 AIR reaches out to 99.37% of Indias population.
  21. 21. Value Parameters• Language of Talking• Songs• Medium (Terrestrial/Web etc)• Radio Jockeys• Clarity of Broadcast• Content/Theme• Contests• Funny Characters & Mimicry in between• Humour• Personal Song Requests• Dedications & shout out messages• Lesser number of Commercials• Duration of RJ talk By SOHAIL SAYANI 21
  22. 22. Competitor Offerings (Mumbai) City Big Red One Mirchi Fever OYE Gold RainbowLanguage Hindi Hindi Hindi Hindi Hindi Hindi Hindi Hindi/ Hindiof Talking Marat Marathi& Songs hi EnglishSongs Differs Latest & Every Differs Differs time- Differs Old Mixed time- constant Zamana time-wise wise time-wise Retro Unpredictabl wise eMedium FM+ FM FM FM FM FM FM FM+D FM Web TH+CA SRadio Original Two Top Newbies Top One veteran Not well Freela FreelancersJockeys Love Guru Love known ncers GurusClarity of Clear Clear Super Clear Super Clear Clear Clear UnclearBroadcast Clear ClearContent/ GEC type GEC type GEC type GEC type GEC type GEC type Bollywood Rando RandomTheme only m/ CricketComedy Babbar Javed & Hoezay Ghanta Sud ! Bollywood Golmaal - - Sher Farhan (Jose) & Singh Baba & Sir Sir Akhtar Suresh Sir Menon By SOHAIL SAYANI 22
  23. 23. StakeHoldersPrimary SecondaryLISTENERS Show Producers/ Music Managers /Programming Directors/Back-end supportRadio Jockeys GovernmentAdvertisers TRAIFilms Media HousesSongs Products & BrandsSingers & Artists TrafficCelebrities Telecom CompaniesMobile/Music System/Gadget Music Labels Cricket Current Affairs RAM Rating Agency By SOHAIL SAYANI 23
  24. 24. LISTENERSHome & Out of Home Music System,Car, Mobile,WebAge group Kids,Teens,18-25, 25 to 40, 40+Active & Passive Listeners While doing work,etc Callers/Contest ParticipantsProfession-wise School & college students, House wives, High end Corporates,Executives,etcSocio Economic Category SEC A,B,CGender M&FTime of tuning in Daily, Only Mornings,Only Night etcLoyalists / Switchers Fans of a particular station / RJ , Random End users’ classification By SOHAIL SAYANI 24
  25. 25. Revenue Generation• Two Customers: Listeners & Advertisers• For listeners: FREE TO AIR• Revenue largely only from AD SALES• Client Ad AgencyRadio Station• Brand ManagerMedia PlannerSales Team• Eg: MaricoMadison Oye 104.8 FM By SOHAIL SAYANI 25
  26. 26. By SOHAIL SAYANI 26
  27. 27. Radio: Front End DistributionSales Revenue from:• Ad Agencies• Small Business Owners• Acquiring ads for non-radio advertising business By SOHAIL SAYANI 27
  28. 28. RAM (Radio Audience Measurement) TrendSource: RAMTG: All 12+Time Period: Recent 4 weeks [WK3911 - WK4211 {25th Sep11 - 22nd Oct11}]Prior 4 weeks [WK3511 - WK3811 {28th Aug11 - 24th Sep11}]http://www.exchange4media.com/rame4m/tradio_42_2011.asp By SOHAIL SAYANI 28
  29. 29. RAM (Radio Audience Measurement) TrendSource: RAMTG: All 12+Place of Listening: ALLTime Period: Recent 4 weeks [WK3911 - WK4211 {25th Sep11 - 22nd Oct11}] By SOHAIL SAYANI 29http://www.exchange4media.com/rame4m/dlife_42_2011.asp
  30. 30. •Average Audience in 000s - Average No. of people present in a station at any given quarterhour during the time period selected Archana & Salil RJ jeeturaaj RJ Malishka Archana & Salil RJ jeeturaaj RJ Malishka Love Guru RJ Malishka RJ Sangeeta Archana & Salil RJ Mantra RJ Anmol Archana & Salil By SOHAIL SAYANI 30 RJ jeeturaaj
  31. 31. RAM (Radio Audience Measurement) TrendSource: RAMMarket: MumbaiUniverse (000s) for 2011: 11651TG: All 12+Time Period: Recent 4 weeks [WK3911 - WK4211 {25th Sep11 - 22nd Oct11}]Prior 4 weeks [WK3511 - WK3811 {28th Aug11 - 24th Sep11}]] By SOHAIL SAYANI 31http://www.exchange4media.com/rame4m/mum_42_2011.asp
  32. 32. By SOHAIL SAYANI 32
  33. 33. By SOHAIL SAYANI 33
  34. 34. • Aircheck India produces independent verification of airplay and provides market• Live Reports• Market Share• Brand and Category Analysis• Exception Reports• Song Rotations By SOHAIL SAYANI 34
  35. 35. Customer Acquisition• Contests• Outdoor Events• Outdoor Hoardings• Website & Social Media Interactions• Programming Changes• TV & Newspaper Ads• In Film Brandings (e.g. Lage Raho..) By SOHAIL SAYANI 35
  36. 36. World SpaceBy SOHAIL SAYANI 36
  37. 37. Customer Acquisition-Barter• Eg: College festival Partner• Provide on-air promotion in return for things like Banners, Stalls, Informal event, OB Jocks at venue By SOHAIL SAYANI 37
  38. 38. Customer Acquisition One day in the last week By SOHAIL SAYANI 38
  39. 39. By SOHAIL SAYANI 39
  40. 40. Customer Acquisition By SOHAIL SAYANI 40
  41. 41. Customer Acquisition By SOHAIL SAYANI 41
  42. 42. By SOHAIL SAYANI 42
  43. 43. By SOHAIL SAYANI 43
  44. 44. By SOHAIL SAYANI 44
  45. 45. Tie-Ups with Brands By SOHAIL SAYANI 45
  46. 46. By SOHAIL SAYANI 46
  47. 47. By SOHAIL SAYANI 47
  48. 48. Radio: Supply ChainMusic License (Highest Cost for a Radio Stn)Music created Rights soldLicense givenEg.Red Chillies Entern.T-SeriesFever 104 FMPPL (centralised body for distributing rights) By SOHAIL SAYANI 48
  49. 49. Govt Regulations• FM Phase-lll Policy• Total of 839 new FM radio Channels in 294 cities• Presently it covers 86 cities• Will result in coverage of all cities with a population of one lakh and above with private FM radio channels. By SOHAIL SAYANI 49
  50. 50. Govt Regulations-Phase III• 1) Radio operators have been permitted carriage of news bulletins of All India Radio.• 2) Non-news and current affairs broadcast will be permissible• (Broadcast pertaining to the certain categories like information pertaining to sporting events, traffic and weather, coverage of cultural events, festivals, coverage of topics pertaining to examinations, results, admissions, career counselling, availability of employment opportunities, public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration) By SOHAIL SAYANI 50
  51. 51. Govt Regulations-Phase III• The limit on the ownership of Channels, at the national level, allocated to an entity has been retained at 15%. However channels allotted in Jammu & Kashmir, North Eastern States and island territories will be allowed over and above the 15% national limit to incentivise the bidding for channels in such areas;• Private operators have been allowed to own more than one channel but not more than 40% of the total channels in a city subject to a minimum of three different operators in the city.• FDI+FII limit in a private FM radio broadcasting company has been increased from 20% to 26% By SOHAIL SAYANI 51
  52. 52. Govt Regulations-Phase III• A choice is proposed to be given to the private FM broadcasters to choose any agency other than BECIL for construction of common transmission infrastructure within a period of 3 months of issuance of LOI failing which BECIL will automatically become the system integrator and set up co-location facilities and CTI.• Special incentives for North East (NE) Region and Jammu & Kashmir (J&K) and Island territories By SOHAIL SAYANI 52
  53. 53. 8 December 2011, TRAI releases consultation paper• With A and A+ cities demanding more FM channel even after the announcement of the Phase III guidelines, the Telecom Regulatory Authority of India (Trai) has sought the opinion of stakeholders whether it would be acceptable if the minimum channel spacing within a license service area can reduced from the current level of 800 KHz. ( 0.8 MHz)• Largely a Technical Paper 91.1 92.7 93.5 94.3 By SOHAIL SAYANI 104 104.8 53
  54. 54. Total FM channels in New York City: 44 By SOHAIL SAYANI 54
  55. 55. Total FM channels in London: 42 By SOHAIL SAYANI 55
  56. 56. By SOHAIL SAYANI 56
  57. 57. By SOHAIL SAYANI 57
  58. 58. By SOHAIL SAYANI 58
  59. 59. Community Radio By SOHAIL SAYANI 59
  60. 60. Community Radio The Supreme Court of India ruled in its judgment of February 1995 that "airwaves are public property” Anna University Indias first campus community radio, launched on 1 February 2004 Educational Institutions,NGOs,Civil society organizations Aimed at covering an area of 5-10km radius. Mumbai:- 105.6 Gyan Vani (SNDT), 107.8 Radio MUST (M.U.) ,90.8 Jago Mumbai Well Known Colleges with CampusRadio: MICA Vaani ,SIMCast , IIT-B...TOTAL FM stations (including Community Radio) in India: 571 [www.asiawaves.net] By SOHAIL SAYANI 60
  61. 61. Community Radio• Effective Radiated Power (ERP) specified is 100 W. However, in special cases, UPTO 250 Watt ERP can be considered subject to conditions laid down in the guidelines• E.g. :• 91.1 MHz 20 kW Radio City• 90.8 MHz 0.05 kW Jago Mumbai• Problem faced by CRs in Mumbai By SOHAIL SAYANI 61
  62. 62. Community RadioWhat type of programs can be broadcast on Community Radio?• The Programmes of Community Radio should be of immediate relevance to the community and focus on issues relating to education, health, environment, and agriculture and rural and community development.• At least 50% of content shall be generated with the participation of the local community, for which the station has been set up.• Transmission of sponsored programmes shall not be permitted except those sponsored by Central & State Govts. and other organizations to broadcast public interest information.• The CR shall not broadcast any programmes which relate to news and current affairs and are otherwise political in nature. The details about content regulation may be seen in the policy guidelines By SOHAIL SAYANI 62
  63. 63. Community RadioCan Community Radio Stations air commercials?• Limited advertising and announcements relating to local events, local business and services and employment opportunities shall be allowed. The maximum duration for such advertising will be restricted to five minutes per hour of broadcast. By SOHAIL SAYANI 63
  64. 64. Some MAJOR insights from Primary Research• “While Commuting” was a frequent response (contradicting RAM results)• Many among youth started radio listening habit because of FM in mobiles• “Songs” matter the most• Many find “ads” to be a pain By SOHAIL SAYANI 64
  65. 65. Survey90ResponsesAges…… By SOHAIL SAYANI 65
  66. 66. Survey• 90 responses By SOHAIL SAYANI 66
  67. 67. Survey B.Com 11 12% B.E. 23 26%• 90 responses B.Sc. 9 10% BMM 2 2% BMS 2 2% BA 11 12% MBA/M 12 13% MS MBBS/m 4 4% edical Diploma 0 0% other PG 16 18% By SOHAIL SAYANI 67
  68. 68. Need Gaps & innovative ideas for opportunities• A major Painpoint of listeners is Commecials !!!• A new Ad-Free Radio!!!• Downside:• No revenue for Radio Stations• Listeners will not be keen to Pay subscription fee By SOHAIL SAYANI 68
  69. 69. • Another painpoint is the chatter & bak-bak on Radio• Create a NO- TALK , music only radio• A better version:• NO-TALK.• Only FEW ads.• Airtime sold at a PREMIUM rate• since ads will be very few• Ads after 4 Before Now 12 mins ads per hour 5 mins ads per hoursongs. Rs.600 per 10 sec Rs.1300 per 10 sec By SOHAIL SAYANI 69
  70. 70. • What do you wish radio to be like? By SOHAIL SAYANI 70
  71. 71. Comedy Radio(with songs of course!) By SOHAIL SAYANI 71
  72. 72. Restaurant Idea By SOHAIL SAYANI 72
  73. 73. Restaurant Idea• Gap: Music mostly not of customers’ choice• After taking order,waiter gives Music menu• Music played in restaurant by customer choice• Dedications included too By SOHAIL SAYANI 73
  74. 74. Need Gaps & Innovative Ideas: 1) Mirchi DJ Service By SOHAIL SAYANI 74
  75. 75. Mirchi DJ Service• Gap Identified: Common man’s aspiration to dance to DJs.Deejays getting popular . No station currently employs this concept• Getting DJ parties to the aam aadmi also• Adding another Dimension to Audio Medium- Involving ONE MORE SENSE• Weddings/ Small Parties / Corporate Events / Local Functions/Ganesh Utsav /Navratri By SOHAIL SAYANI 75
  76. 76. Mirchi DJ ServiceWedding Function By SOHAIL SAYANI 76
  77. 77. Mirchi DJ Service• Radio Station has to tie up with local DJs, Sound System & Event organizers• Simply instruct the DJ to play short Station JINGLES in between songs• Branding & Logo on equipment & Banners By SOHAIL SAYANI 77
  78. 78. In House Retail store radio• Not necessarily live,can be Prerecorded• No talk necessary• Simple modification:• Playing songs asusual ,but withStation Jingles in between By SOHAIL SAYANI 78
  79. 79. • Survey response:• What would you like as prizes? By SOHAIL SAYANI 79
  80. 80. Radio’s Movie Club for College students• Need Gap: Low radio in media-pie !• Tie up with Producers/ Cinema Halls• First day first MORNING show : FREE tickets on for Loyal listeners• on College ID cards By SOHAIL SAYANI 80
  81. 81. By SOHAIL SAYANI 81
  82. 82. Open Mic Events• Gap identification &Opportunity:• After one finishes college ,an aam aadmi does not really have a chance or a platform to do something on stage• The Idea: Organising a monthly“Open Mic” event at a venuelike an open air restaurant By SOHAIL SAYANI 82
  83. 83. Open Mic : Detailed concept• RJs announce on air about a monthly event organised by the Radio Station that allows them to perform their original work in front of an informal audience for 2 or 3 minutes By SOHAIL SAYANI 83
  84. 84. Open Mic : Detailed concept• E.g. poems, dance,song, mimicry, shayari, limerics, or just about anything• A platform for showcase of talent; or …….the lack of it !!• A casual café setting ;not a “stage”• Performers who get a goodapplaud from the audience geta goody bag and a song dedication on air• Fixed venue every month• (e.g. First Saturday evening every month) By SOHAIL SAYANI 84
  85. 85. Open Mic• Purpose: To let people express their creativity or to bring out the performer in them. Encourage people to write/create their own & original piece of work• Benefits:• Radio is a medium which exercises only one of the 5 senses• This initiative can add anotherdimension to it• Listeners can meet their favorite RJs in person• Listeners can meet up and interactwith other radio lovers• Will Create a community of radio lovers• Better involvement of the listener in his life By SOHAIL SAYANI 85
  86. 86. Open mic…….What generally do you do while listening toradio? (select not more than two) By SOHAIL SAYANI Socialising ! 86
  87. 87. What is yourfavoritetype ofmusic? By SOHAIL SAYANI 87
  88. 88. Niche TG• Only major station with International Music• Launched in 2006 in Bangalore• Second station in Goa around 2009• Delhi has a station Hit 95 FM with mainly plays eng music By SOHAIL SAYANI 88
  89. 89. Upcoming Trends in the sector• From Feb 2012, Mumbai will have an ENGlish private FM station• Radio One going Niche (NEED GAP)• Focusing English Speaking Indians,Intnl Feel• Launched as Go 92.5 Fm 2003,was english & semi-eng for 3 yrs.Switched to mass market.• Now back to english By SOHAIL SAYANI 89
  90. 90. Upcoming Trends in the sector• Metros to have 9 private stations• Multi freq permitted, so diverse content• More traffic, more radio listening !• More mobiles,more FM tuning in ! By SOHAIL SAYANI 90
  91. 91. • Radio is not just on FM/AM etc, but PODCASTING too (Prerecorded radio shows)• What “commuting/travelling” is to FM RADIO• “Net Surfing on PC” is to “Net Radio” By SOHAIL SAYANI 91
  92. 92. • Have you ever heard Internet Radio?• Yes49(54%) no(41)46%• How often do u listen to Internet Radio?• By SOHAIL SAYANI 92
  93. 93. Web Radio & Artist radio love u for ths By SOHAIL SAYANI 93
  94. 94. Community Radio & Campus Radio Low power FM / WebRadio…. Promoting LOCAL talent By SOHAIL SAYANI 94
  95. 95. References• Radio.about.com• WikiPedia• Asiawaves.net• Websites of Indian Radio Stations• Radiotime.com• Afaqs.com / exchange4media.com• Officials from FM Stations• My Contact: sohail@radio.fm• http://in.linkedin.com/in/sohailsayani• www.facebook.com/RJSoh• www.facebook.com/RJSohailsayani• www.twitter.com/ToMainKyaNachun By SOHAIL SAYANI 95

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