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Digital radio technology can double broadcast sector’s revenue in five years: ICEA-EY report

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Mumbai: The adoption of digital radio technology will help the broadcast sector double its revenues within five years to Rs. 12,300 crore, according to a report prepared by the India Cellular and Electronics Association (ICEA) and EY.

The report shows that digital radio broadcasting can be extremely beneficial for all the stakeholders in the sector—broadcasters, listeners, advertisers, and regulators—and can help the FM radio segment boost revenues. This comes at a time when the FM radio segment has been struggling to generate robust revenues over the past few years.

It would lead to more advertising inventory to sell with the ability to charge higher rates based on segmented audiences. Given that the digital radio system can provide listenership data, broadcasters can build trust and eventually grow revenues.

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Another significant benefit of these technologies for broadcasters is that their transmitters use significantly less power than analogue radio transmitters.

India has also tested two technologies – HD radio and digital radio mondiale (DRM), for digital broadcasting in the FM band.

ICEA chairman Pankaj Mohindroo stated, “India is a heterogeneous market and provides audience segments with differing tastes as well as payment capabilities. Digital broadcast radio has the ability to cater to segments of entry-level smartphones and several hundred million feature phone users to receive enhanced services in the areas of health, education, emergency, and weather, which by complementing data networks, decongests them. Communication usage with IOT devices is next envisaged in the pipeline too.”

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Citing the report, Mohindroo said, “Digital technologies would go a long way in widening the network of broadcast infrastructure in the country and the number of radio stations would grow multifold from the current numbers of less than 300 to over 1,100 without any additional spectrum.”

EY India partner Ashish Pherwani said, “Digital radio can provide a much-needed boost to the Indian radio segment. As a free-to-air medium, radio plays a very vital role in India’s informing and educating its people. Systemic issues around measurement, reach, operating models, competing products, and COVID-19 impacted the segment with failing revenues and shrinking opportunities. Digital radio can help grow the radio segment in India by 3x over 5 years, if implemented keeping in mind the requirements of various stakeholders and with the correct policy support.”

According to the report, the number of channels will increase significantly from the perspective of listeners. Around 4x more channels are possible within the same frequency, which can provide more options to listeners. Furthermore, the technology is broadcast-centric, and consumers would not have to pay any data charges. Analogue transmission would also be enhanced as it provides a better listening experience than digital transmission across both audio quality and user interface.

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Digital technologies would also bring about major reforms for the regulators as it would result in optimum use of scarce spectrum in the middle and long term and lead to increased taxes from increased revenues. It would also allow the authorities to use digital radio infrastructure for emergency warnings and traffic information.

The report prepared by ICEA and EY noted that a complete transition from analogue to digital radio infrastructure would take three to five years. Radio broadcasters cannot enable a switch-on-switch-off transition to digital radio as they are dependent on linear FM reach for their revenues. This would mean that analogue and digital broadcasting will need to exist in parallel till adequate reach is achieved.

Consequently, for some years, there would be no spectrum saving, said the report. The report has recommended innovation around cost-effective chipsets, antennas, and software to drive quicker adoption of digital radio. It has also been said that competing products using low bandwidth data and consensus on music royalties are issues that need to be addressed.

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How short, addictive story videos quietly colonised the Indian smartphone

A landmark Meta-Ormax study of 2,000 viewers reveals a format that is growing fast, paying slowly and consumed almost entirely in secret

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CALIFORNIA, MUMBAI: India has a new entertainment habit, and it arrived without anyone really noticing. Micro dramas, those short, cliffhanger-driven episodic stories built for the smartphone screen, have quietly embedded themselves into the daily routines of millions of Indians, discovered not by design but by algorithmic accident, watched not in living rooms but in bedrooms, on commutes and in the five minutes before sleep.

That, in essence, is the finding of a sweeping new audience study released by Meta and media insights firm Ormax Media at Meta’s inaugural Marketing Summit: Micro-Drama Edition. Titled “Micro Dramas: The India Story” and based on 2,000 personal interviews and 50 depth interviews conducted between November 2025 and January 2026 across 14 states, it is the most comprehensive study of the category in India to date, and its findings are striking.

Sixty-five per cent of viewers discovered micro dramas within the last year. Of those, 89 per cent stumbled upon the format through social media feeds, primarily Instagram and Facebook, without ever searching for it. The algorithm did the heavy lifting. Discovery, as the report puts it bluntly, is algorithm-led, not intent-led.

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The typical viewer journey begins with accidental exposure while scrolling, moves through a cliffhanger-driven incompletion hook that makes stopping feel unfinished, and is reinforced by algorithmic repetition until habitual consumption sets in. Only then, when a platform asks for an app download or a payment, does the viewer pause. Trust, not content quality, determines what happens next, and many simply return to the free feed rather than pay. It is a funnel with a wide mouth and a narrow neck.

The numbers on consumption tell their own story. Viewers spend a median of 3.5 hours per week watching micro dramas, spread across seven to eight sessions of roughly 30 minutes each, peaking sharply between 8pm and midnight. Daytime viewing is snackable and low-commitment, squeezed into morning commutes, work breaks and coffee pauses. Night-time is where the format truly lives: private, uninterrupted and, for many viewers, socially invisible. Ninety per cent watch alone, compared to just 43 per cent for long-form OTT content. Half the audience watches during their commute, well above the 37 per cent figure for streaming platforms, a direct reflection of the format’s low time investment advantage.

The audience itself breaks into three segments. Incidental viewers, comprising 39 per cent of the total, are passive consumers who stumble in and rarely seek content actively. Intent-building viewers, the largest group at 43 per cent, are beginning to form habits and seek out episodes but remain cautious. High-intent viewers, just 18 per cent, are the ones who download apps, tolerate ads and occasionally pay: skewing male, younger and urban.

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What audiences want from the content is revealing. The top three genres are romance at 72 per cent, family drama at 64 per cent and comedy at 63 per cent, precisely the same top three as Hindi general entertainment television. The format rewards emotional familiarity over complexity. Romance in particular thrives because it demands low cognitive investment, needs no elaborate world-building and plays naturally into the private, pre-sleep viewing window where inhibitions lower and emotional intimacy feels safe.

The most-recalled shows, led by Kuku TV titles such as The Lady Boss Returns, The Billionaire Husband and Kiss My Luck, share a common narrative DNA: rich-poor conflict, hidden identities, power imbalances, melodrama and cliffhangers that make stopping feel physically uncomfortable. Predictability, the research warns, is fatal. Each episode must re-earn attention from scratch.

The terminology question is telling. Despite the industry’s embrace of the phrase “micro drama,” viewers have not adopted it. They call the content “short story videos,” “short dramas,” “reels with stories” or simply “serials.” One respondent from Chennai said bluntly that “micro sounds like a scientific word.” The category is at the stage that OTT occupied in 2019 and podcasts in the same year: widely consumed, poorly named and not yet crystallised in the public imagination.

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Platform awareness remains alarmingly thin. Only three platforms, Kuku TV at 78 per cent, Story TV at 46 per cent and Quick TV at 28 per cent, have crossed the 20 per cent awareness threshold. The rest languish in single digits. This creates a trust deficit that directly throttles monetisation: viewers who cannot remember which app they used are hardly primed to enter their payment details.

Yet the appetite is clearly there. Sixty-five per cent of viewers watch only Indian content, drawn by the TV-serial familiarity of the storytelling, the comfort of Hindi as a shared language and the sight of actors they half-recognise from decades of television. South languages are rising fast: Tamil, Telugu and Kannada together account for 24 per cent of first-choice viewing. And AI-generated content, still a novelty, has landed better than expected: 47 per cent of viewers call it creative and unique, with only 6 per cent actively rejecting it.

Shweta Bajpai, director, media and entertainment (India) at Meta, called micro drama “a category that is rewriting the rules of Indian entertainment,” adding that the discovery engine being social distinguishes this wave from previous content formats. Shailesh Kapoor, founder and chief executive of Ormax Media, was characteristically measured: the format, he said, is showing “the early signs of becoming a distinct content category” and, given how closely it aligns with natural mobile behaviour, “has the potential to scale very quickly.”

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The format’s fundamental mechanics are working. It enters lives quietly, through boredom and a scrolling thumb, and burrows in through incompletion and habit. The challenge now is monetisation: converting a category of highly engaged but deeply anonymous viewers into paying customers who trust the platform enough to hand over their UPI credentials. The story, as any micro-drama writer knows, is only as good as the next cliffhanger. India’s platforms had better have one ready.

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