From the time broadcasting opened its doors to private players, a new entertainment revolution has seen the light of the day. The monopoly of All India Radio has since been broken and private players have rendered the ground highly competitive. New innovative forms of broadcasting in the likes of community radio stations, or even digital radio have ushered in a trend wherein radio is now being looked at as a prospective medium that is capable of enough reach and coverage. This is particularly evident in the rising of radio as an advertising medium wherein biggies are also considering the medium for its promotional activities. Though radio as an advertising medium has still a long way to go as compared to global proportion, yet driven by the characteristic of being a cost effective medium radio is poised to grow further.
The report begins with the introduction section detailing about the parent industry for FM broadcasting. It gives a brief overview on the media and entertainment sector along with its market size and growth, a comparison with global growth trends and an indication of revenue pattern. It then proceeds to provide details about the FM broadcasting sector. This part is constituted with the evolution of the broadcasting sector in India, followed by the description of radio as a communicative medium.
This section is followed by the detailing of the Indian market for FM broadcasting wherein its market size along with growth is presented. Certain other indications about the market are also provided ranging across geographical coverage to advertising revenues which help to paint the current picture of the sector. The value chain analysis comes next which is immediately followed by the revenue model adopted by the majority of players in the sector. This section ends with the enumeration of the eligibility criteria for getting permission and operating as an FM radio channel. The next section details about the Phase III auction of spectrums for FM broadcasting. It provides the basic overview about the features and the incentives for this activity. Information in the likes of minimum net worth required as per city as well an analysis of the conflicting factors are also provided. An exclusive section devoted to rural scenario for FM broadcasting is given wherein information about innovative schemes to boost FM penetration, case study and community radio stations are provided along with growth rates.
Brief descriptions of the drivers that help the sector to prosper include increase in FM penetration, increase of advertising, increase in usage of mobile phones, demographical alterations, political advertising and introduction of new performance measurement tool. The most significant driver for the growth of FM broadcasting is the increasing penetration of FM radio wherein increased usage of FM radio across the length and breadth of the country spells more opportunity for the broadcasters to reap benefits and garner revenue. Being a cost effective medium, radio is now seen as a prospective medium for advertising since its coverage is much wider and deeper than most other media. Another important driver in this regard is the increased usage of mobile phones since currently a good percentage of people listens to radio on their cell phones. As mobile phones penetrate into the most interior of the country, listening to radio also receives a positive thrust. Demographical alterations witnessed across the population presents yet another chief driver as youth looks for entertainment option and newer forms like digital radio catches the attention of this lot. Radio broadcasters derive growth as political parties or even Government continues to opt for radio to advertise them and reach the mass. Finally, introduction of performance measurement tool is hailed as a significant driver as it provides a quantitative indication of the return on investment for advertisers and aid
