|
"From the time FM radio was launched by private players, the average
radio listenership in India has gone up from 50 minutes a day to
160 minutes, "Star India's radio division COO Sumantra Dutta told
journalists here today, while announcing the launch of Radio City
in the Capital.
However, Dutta, an old hand at Star India that was part of the
Kaun Banega Crorepati success story on Star Plus in 2000,
also said that 10 years back radio listenership was much higher
than what it is today, but radio today commands a meagre 1.5 per
cent of the total advertising spend.
Asked by indiantelevision.com if the private players feel that
there is not much money to be made in this business, what was the
reason for them to keep launching radio stations, Dutta said the
industry is hoping the government will step in to stem the rot and
evolve more industry-friendly guidelines.
"I am sure the government will understand our plight and evolve
a mechanism like revenue sharing or a flat fee in the near future,
even while coming up with a migration package for the existing FM
radio players, like that done in the telecom sector," Dutta said,
hoping that a meeting the private FM players were to have with India's
information and broadcasting minister Ravi Shankar Prasad later
in the day would bear some fruit.
Though Dutta refused to hold forth on the financial details, but
according to government data, submitted by the private FM players,
the combined loss of the players in the last financial year was
to the tune of Rs 1.2 billion. Where Radio City is concerned, it's
losses amounted to approximately Rs 360 million with the revenue
generated last year being around Rs 190 million. But it is also
true that a major part of this loss, about Rs 240 million, was in
the form of high license fee that MBPL paid as the first round of
licences were given two years back through an open auction.
Still, Dutta is optimistic of cutting down losses by leveraging
content from Star.
For example, Radio City and Channel [V] will source content from
each other and in certain ventures both the radio and television
will act in tandem. Explained Dutta, "We are working towards a scenario
where at a certain given time period of the day, Channel [V] will
play the video of the song being played out on various Radio City
stations."
Even the Popstar's second edition will be done on Radio
City as well as on Star's TV channels Dutta said.
But for an industry where advertising revenue is difficult to come
by and the clutter is more, it would be a Herculean task if the
likes of Radio City reach the break even any time soon.
|
