The Resurgence of Radio in

India : The Re-Entry of PVT

Players

Presented BY –
Akhlesh Kumar (A54)
Manpreet Kaur (A55)
Jasmeet Singh (A19)
Shreya Chitranshi (A22)
Vineet Kumar (A14)
“Nobody asks for Radio and nobody gives a damn.”
- Prasoon Joshi (C. Director)

“Radio won’t die; even today the reach

of radio is more than that of television.
In rural India, every individual has a
transistor. And you can listen to the
radio even when you are telling the
soil. You can’t do that with TV.”
- Vinod Sharma (Ex-President, RAPA)
Introduction
Radio was invented during the late 1890s.
Public Radio services offering information and
entertainment.
Advertising on the radio started first in the US in
1920.
In India, radio broadcasting started in 1927 at
Mumbai and Kolkata.
From 1957, the radio service also came to be
referred to as ‘Akashvani.2’
Vividh Bharti, Air’s main entertainment channel
was started in the 1960s.
Cont.
In July 1999, the GOI decided to allow PVT
players to enter the FM broadcasting sector.
The first private FM radio station began in July
2001 in Bangalore, Karnataka.

Radio is the medium

of the common man
Programs by Radio
 In 1980s, its programs included situational
comedies, suspense thrillers, film music based
programs, dramas, and discussion and
commentaries on health, cooking and beauty
tips.
 And now a days, Radio broadcasts music,
education and entertainment based programs.
And other programs as News and current affairs
also.
Most Popular FM Stations in India

98.3 FM (Radio Mir chi)

92.7 FM (Big FM)
91.9 FM (Radio Mantra)
95.0 FM
93.5 FM (Red FM)
94.3 FM (My FM)
BIG 92.7 FM
ADVERTISEMENT
Present Scenario
12,275 Radio station under telecom act 1996
Radio station increase 75%-100%
8.5 growth
Radio and technology
Radio and advertising
Radio listeners
Radio is an affordable and easily accessible
medium
• Free to air – no subscription charges unlike
TV/newspapers/magazines/Sat Radio
• Cheap receiver – unlike TV
• Not dependent on power
only source of entertainment during energy cuts; which is still
high in smaller towns
• Vast reach – 90% coverage vis-a-vis TV (only 80 million TV
homes) and press
• Only medium of entertainment for the economically weaker
sections of Society
Latest Strategies
• Improving Sound quality
• Increase the advertisements
• Live shows
• Campus Visit to capture youth
Competitors

Television
Computer/Laptop
Mobiles
i-pod
DVD Player
News Paper
Internet
Porter’s 5 Forces Model
Porter’s 5 Forces Model
Threat of the new entrants:- Moderate

Bargaining power of buyer:- Low

Bargaining power of supplier:- Low
Inter category competition:- High
Threat of substitute:- High
BCG Matrix
 BCG Matrix
Star – Question Mark –
 High growth,  High growth But low market
 High market share) share

Cash Cow – Dog –

 Low growth,  Low growth,
 High market share  Low market share)

Radio comes in this Matrix

 SWOT Analysis
Strength –
 Recently, the government has agreed upon revenue-sharing model,
which is 4 % for the growth of the radio stations.
 Radio listenership habits have changed considerably·
 Radio is considered as a background medium, because people can
listen to radio anytime and anywhere they want. It is also a free
medium.
 90% of India has access to radio which is unmatched by any other
media.
 Radio also reaches to uneducated village folk who do not read print
publications
 Radio is the least cost medium and it helps to reach mass audience
with various backgrounds.
 Radio is considered as a medium where the “Proximity to purchase”
is very high.
 Radio is a complement to another media. Therefore, other media or
the advertisers or agency can use this medium for brand recall.
 Cont..
Weaknesses –
 There is very less differentiation in the programs that are aired. Most
of the stations plays much of the music that is played consist of Hindi
Film songs, and therefore it is difficult to differentiate between the
programs of the different channels.
 Fragmented Audience – the large number of the audience in India is
fragmented in various remote places.
 No proper research available –there is no proper research is
available. Many stations are conducting their own research which can
be biased.
 An advertiser whose product depends on demonstration or visual
impact is at a loss when it comes to radio.
 Many advertisers think that without strong visual brand identification
the medium can play little or no role in their advertising plans.
 Increase in listenership numbers but no increase in ad revenue. This
is the situation that every radio channel is facing.
 Short commercials
 Cont..
Opportunities –
 Getting copyright licenses from the government for running mega
events
 Launching a radio station with 24-hour news channel
 Tie-ups with BEST or railway authority for playing the FM in train and
in bus.
 The launch of Private Radio FM has managed to create a set of ‘New
Listeners’ for the medium
 The new radio stations which will come in future they can have
venture with the college or university campuses. And can play their
station which will exclusively provide with the information relating to
that university/college campus.
 With the coming of the many more new players in the radio industry
each channels can position themselves quite different from others.
 Allowing private FM players to start news and current affairs
programs
 Leaves huge scope for innovation in local market
 Cont..
Threats
 The biggest threat to private radio industry players is ALL INDIA
RADIO. AIR is the biggest player in India because of its reach,
low charges, government channel etc…
 Because of the new government policies there will be more
number of stations and then competition will also increase. This
is one of the biggest threats it faces. With no particular
differentiation in the music. So, there is a fear of losing its brand
loyalty
 i-pod
 Music Channels on Television
Conclusion
Recommendations
MADE SOME
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Thank you!!!

Thank you!!!