The Resurgence of Radio in India
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR032
Case Length : 13 Pages
Period : 1993 - 2002
Organization : ---
Pub Date : 2006
Teaching Note : Available
Countries : India
Industry : Media and Entertainment
To download The Resurgence of Radio in India case study (Case Code: BSTR032) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges
»
Business Strategy Case Studies
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
|
|
<< Previous
EXCERPTS
Radio's Untapped Potential
The low advertisement costs and extensive reach of radio help advertisers quickly reach and appeal to their target customers. For advertisers targeting a small/niche audiences, radio worked out to be much more beneficial (Refer Exhibit IV for a summary of the advantages and disadvantages of major media types).
|
Gopinath Menon, Executive Director of the advertising agency, TBWA Anthem, said, "Radio advertising is aptly suited for local promotions, and once audiences can be targeted, it has tremendous potential to eat into local mediums." Reportedly, there are more than 150 million radio sets in India - three times more than the number of TV sets in the country. On the basis of this data, private radio broadcasters claimed that radio had vast potential just waiting to be exploited. They aimed at duplicating the success of satellite television (which transformed the television industry in the 1990s) in the radio sector, with the help of latest digital technologies and innovative programming. According to estimates, radio's share in the total advertising budgets of corporates was likely to grow to 5% by 2007 as against less than 1% in 2001 (Refer Table I)...
|
|
Fm Radio's Success Story
Though the government's invitation to private players resulted in an initial rush for licenses, many companies decided to stay away from the sector because of the high license fees demanded by Prasar Bharati and the risk involved in investing heavily (licensees were required to invest a minimum of $ 690,000 as capital and $ 460,000 as working capital for every station).
|
|
Prasar Bharati had also imposed certain strict conditions that created resentment among the private players. These players were not allowed to offer news or current affair programs, and they were given only a fixed number of slots per city. As a result, only a few players remained in the race. They were given licenses to set up 37 stations that would operate across 19 cities in India (Refer Table II for the key private players in the Indian radio industry). With the launch of 'Radio City FM91' in July 2001, in Bangalore, by STAR and Music Broadcast Private Ltd. (MBPL), the industry began its second innings. Besides Bangalore, MBPL had FM radio licenses for five other cities: Delhi, Mumbai, Patna, Nagpur and Lucknow. The Lucknow and Mumbai stations began operations in the next few months... |
Excerpts Contd... >>
|
|
