Private FM to generate Rs 14 billion revenue in 2012-13
With 245 private radio stations operating across 86 cities and growing at a CAGR of 14% on an annual basis, the radio business in India is expected to generate Rs 14 billion in revenues in 2012-13, according to the latest study titled, ‘Poised for Growth: FM radio in India’, conducted by Ernst & Young (E&Y) in collaboration with the Confederation of Indian Industry (CII).
The report further stated that the sector is expected to grow to Rs 23 billion at a CAGR of 18% in the next three years. According to the study, the sector currently accounts for around 4% the country’s total advertising spend.
Some of the problems faced by the radio industry include limited inventory, inability to demonstrate return on investment and slow recovery of ad effective rates. At present, more than 50% of FM radio is consumed by people at home, followed by people listening in transit (on mobile phones and in-car listening) and out-of-home listening at restaurants, offices and shops. Also about 25% of total radio listenership is now on mobile phones, stated the report. The E&Y and CII report further says that phase III of FM radio licensing promises further growth opportunities for the Indian FM radio industry, since it is expected to cover 294 cities and 839 licenses.
Star India ropes in Amit Chopra to drive sports strategy
Star India has appointed Amit Chopra to steer the group’s sports strategy that includes the Board of Control for Cricket in India (BCCI) media rights. Chopra is currently the CEO of Hindustan Media Ventures Limited (HMVL). The appointment comes in the wake of Star’s increasing involvement in taking care of parent News Corp’s sports business in India.
Earlier this year, Star had acquired the BCCI media rights till 2018 for Rs 38.51 billion. This was followed by Rupert Murdoch owned News Corp consolidating its hold over sports broadcasting in Asia by acquiring Disney’s 50 per cent stake in the equal joint venture company ESPN Star Sports (ESS) for $335 million. ESS is expected to come under Fox