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NEW DELHI: A new industry body representing the FM radio industry ? the Ficci Radio Forum ? was launched here on Monday by Information and Broadcasting Secretary, SK Arora. The seminar was the first interaction between industry and policy makers after the bids for Phase-II of FM Radio were finalised.
A major section of the debate related to the upcoming broadcasting bill 2006. Questions were raised about the Code of Conduct, and speakers said that since the Supreme Court of India has been issuing orders that have more or less crystalised a sort of code of conduct, is there a need to have a fresh one. One of the major recurring irritants that surfaced was that the proposed bill is more biased towards the TV industry rather than the radio, and it was also stated that the Broadcasting Regulatory Authority proposed does not encapsulate the orders of the Supreme Court.
Arora said, “We are waiting for the results of the Phase-II policy and after a due process of consultation with the stakeholders, and will tweak the policy and then go Phase-III of the radio policy.” He expressed satisfaction that in Phase-II, the number of radio stations was expected to jump from 20 to 270 by the end of the current fiscal year. He said that the Forum would provide a platform for discussion with the government, so that there could be mobility and flexibility in the government policy.
ENIL Chairman FICCI Radio Forum and CEO and MD AP Parigi, empahsised the need for a continuing dialogue between all stakeholders so that the level of regulation can be decided on a consensual basis. Such dialogue, he said, would provide answers to questions of FDI and the participation of Indian financial institutions (FIs) in the growth of the FM Radio industry.
FICCI Secretary General Dr Amit Mitra, said the radio industry which was Rs 2,400 million in 2004 is expected to grow to Rs 12,000 million by 2010, representing a 32 per cent growth CAGR when the entire media and entertainment industry is slated to grow at 19 per cent CAGR. This makes the radio industry the fastest growing medium in the media and entertainment sector.
He announced the launch of the FICCI Radio forum under the chairmanship of Parigi. Among other objectives, the Forum will seek to consolidate the radio industry for effective lassoing with the government, promote interface of the industry with significant international players, support R&D in radio technology and provide facilitation, guidance and interface with government and key radio players for new start-ups.
Rajiv Sethi, S&R Associates, also raised the issue why private radio FM channels are debarred from hosting news and current affairs programmes. “All the FM channel owners are cleared by the ministry of home affairs in any case, and they have paid a 10-year licensing fee, so why they are debarred from hosting news programmes, whereas the TV channels are not, defies logic.”
The original voice of Indian radio Ameen Sayani who has been associated with commercial radio for 56 years advised radio stations to steer clear of “popularity-oriented monotony. “The same sing-song style of presenting and the sometimes inane chatter that is aired on radio must go. Every radio presenter has an individual personality, and he/she needs to develop that to create a unique style,” he said.
“It`s a myth that listeners aged 50-plus don`t like to listen to hit music. On the other hand, young listeners are keen on listening to nostalgic Bollywood`s songs. Yet, this does not necessarily call for niche programming. Radio stations should concentrate on offering a bouquet of music that caters to every taste,” added the veteran.
Sonu Nigam, who is among the growing breed of `celebrity RJs`, suggested that radio may be used as a platform for encouraging new talent. “Radio is a great medium to tap music artists all over the country. Radio stations could release individual songs of singers. It may not be long before we have India`s first radio-created superstar!” said Nigam.
The forum also addressed financial concerns of the industry, considering the $0.5 (approx. Rs 2250 crores) billion investment that is expected to flow in the next two years. The options currently open to radio stations are private equity investments, IPOs and strategic investments.
However, going public may not be the best solution for small radio stations who do not have the parentage of big organisations. For them, private equity may be the answer or even strategic partnerships. Take Radio One, which is backed by a partnership with BBC Worldwide. It is estimated that the $2-3 billion of private equity is invested annually in the industry. Radio City is of course backed by GW Capital. The issue of FDI and FII cropped up during the interactive session. Most speakers felt that radio was being discriminated against vis- -vis the print medium since the latter had a FDI/FII cap of 26 per cent, where as radio had a cap of 30 per cent.
