By Abe Thomas
In a refreshing turn of events, TRAI’s recent recommendations on a series of reforms for the radio sector have infused a sense of optimism into the radio industry. However, worldwide, the stock market hasn’t been particularly buoyant about the industry due to its substantial over-leverage, consistently borrowing to expand station networks with hopes of attracting media-tech investments, which are yet to materialise. In India too, listed radio firms are unable to realise their true value due to the various regulatory and content restrictions on the medium.
Bringing in a comforting prospect, the recent changes in frequency e-auctions and TRAI recommendations are making radio more expansive and engaging, opening up fresh possibilities for both listeners and advertisers. The government’s third batch of e-auctions for 808 FM licences is poised to generate Rs 3,000 crore in revenue, while expanding the reach of the medium to newer geography. The allocation of frequencies in 284 cities, with an emphasis on underserved tier II and III areas, ensures a wide reach. The potential changes in revenue sharing with the government to enhance profitability, dismissal of content restrictions on playing news and current affairs and the mandate for mobile handsets to enable FM chips, is expected to catalyse radio adoption bringing in new listeners and advertisers to the medium.
The coming years will drive radio to enjoy its time in the sun relying on innovation as a major pillar and driving force behind the disruptions. Deriving from its core of music curation, the medium will proliferate into extended platforms of audio shorts, podcasts, marketing solutions, AR/VR video and OTT among others. Digital audio is also striving to create radio-like experiences and radio networks are the best platforms to take advantage of this opportunity. Providing customised solutions for brands is another crucial area that acts as a growth driver.
Also one cannot deny the impact of artificial intelligence, which is snowballing significantly and one must harness its power. AI is already creating a firm impact across every step in the radio industry such as content creation, production, marketing, distribution, analytics, creating solutions and monetisation. In parallel, in-car radio has shifted from traditional stations to integrated digital platforms, offering diverse options like broadcasting, streaming, podcasts, and playlists. Over 80% of new vehicles (Statista, 2023) feature in-car infotainment systems, emphasising their growing significance in the automotive sector.
As we are on the cusp of the digital revolution taking a new turn, radio remains vital and adaptable, delivering captivating audio content to local audiences. The future of radio beckons us to tune in and be part of this remarkable journey.
The author is CEO, Reliance Broadcast Network Ltd