>FM Radio Broadcasting Industry - India

EXECUTIVE SUMMARY

Market:
■Radio stations generated a revenue of INR 8 bn in 2008 ; expected to reach INR 18 bn by 2012
■ Share of radio advertising was 3.3 % in 2008; expected to reach 4% in 2012
■ Most stations use same level of genre of content with little or no differentiation
■ There are over 240 radio stations beaming across over 90 cities in India

Drivers:
– Increasing radio listener base
– Opportunities in Phase III expansion
– Increasing advertising by small local brands
– Favourable demographics
– Political advertising
– Introduction of new performance measurement tool

Challenges:
– Royalty
– Lack of content differentiation
– Government regulations
– Bargaining tactics used by advertisers

Trends:
■ Emergence of Visual Radio
■ Satellite Radio
■ Community Radio
■ Internet Radio
■ Sales Alliances
■ Players going Niche

Competition:
■All India Radio (AIR), covers 91% of India's area and reaches 99% of India’s population
■ Radio Mirchi leads the overall market with share in revenue terms in excess of 40%
■ Big FM leads in terms of highest number of stations
■ Majority of players are backed by media houses with interests in media activities like TV or Print

To read the full report: FM RADIO