The adoption of digital radio technology would enable the radio segment revenues to double to Rs 12,300 crore within five years, as per a report by India Cellular and Electronics Association (ICEA) and EY.
The report highlighted that digital radio broadcasting can help the FM radio segment bolster revenues, and prove to be beneficial for all the sector stakeholders, including broadcasters, listeners, advertisers and regulators.
“This comes at a time when the FM radio segment has been struggling to generate robust revenues over the past few years,” ICEA said in a statement.
The offtake of digital radio technology will spur segmental radio revenue, doubling it within five years to Rs 12,300 crore.
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, it said.
From the perspective of the listeners, the report showed that the options of channels would grow significantly.
Around four times more channels are possible within the same frequency, offering more options for listeners.
Quality would also be enhanced as it provides a better listening experience than analogue transmission.ICEA Chairman Pankaj Mohindroo said digital technologies would go a long way in widening the network of broadcast infrastructure in the country.
The number of radio stations would grow multifold from less than 300 currently to over 1,100 without any additional spectrum.