To survive in such a competitive field, radio stations will need to diversify, say experts. That means distinguishing themselves through new and better programming and promotions.
At the moment, that is not really happening. “There is not much differentiation between the stations as a whole,” says Big River Radio’s Kumar.
“They mostly play Hindi hits.” In such a scenario, analysts say, existing and upcoming stations may struggle to keep listeners, generate new ones and increase ad revenues.
One critical factor for the similarity of FM content across channels is the government regulation that stations cannot air news broadcasts. That pigeonholes stations into just playing music, some experts say. “If we were allowed to do news, it would add more value for the listener,” says Praveen Malhotra, vice-president of sales and head of the North India operations for Big FM.
PRAVEEN MALHOTRA: Vice-president, sales, and head of the North India operation, Big FM .Strategy: Starting this month, Big 92.7 FM began syndicating its content to US-based radio station Asian FM, one of the biggest radio stations catering to South Asian audiences in the US.
The bigger players in the field are unfazed by the competition. Prashant Panday, CEO, Radio Mirchi, says the onus is on the new stations to establish themselves. Radio Mirchi, which relaunched in 2001, claimed to be the largest private FM radio network in India in its most recent annual report. “We are the leaders of the market. We don’t have to change,” says Panday. “So many people already know who we are.”
Panday says that instead of playing for the same market, new channels should explore untapped territories. Only one-third of the population listens to the radio on a daily basis in areas where private FM stations operate, he says. “New radio stations shouldn’t have a problem if they diversify themselves to target new listeners.”
The Bhaskar Group’s MY FM has based its strategy on catering to local tastes. “Our marketing strategy stems from the fact that each city is different. A station such as Ajmer, which has a near 30% Sindhi population, has different music and content mix from another station in Rajasthan such as Udaipur or Jaipur—thus making the product, and also the marketing communication, highly customized and local in nature,” says Harish Bhatia, business head, MY FM. The group now operates 17 stations across seven states.
Big FM, too, is keen to reach untapped listeners in cities with fewer FM options. The Adlabs venture launched its first station in New Delhi about a year ago. Now, it operates channels in 43 towns and cities, apart from New Delhi and Mumbai. Says Malhotra: “The company focuses on local flavours. Big FM was the first station to broadcast in Kannada in Bangalore.”