The country’s private FM radio sector is currently facing many challenges. Advertisements are decreasing, expenses are increasing and due to digital platforms, radio’s earnings are being affected. In such a situation, radio companies want some major changes in the rules from the government. Industry experts say that if relief is not provided soon, more FM stations may be closed in the future. At the same time, if right decisions are taken, investment in the sector can increase and along with new employment, local content will also get a boost. 5 big expectations of radio companies from the government 1. FM radio should be allowed to broadcast news. In India, private FM radio channels are not allowed to broadcast news independently. Radio companies say that it has now become difficult to compete with global music and streaming apps on the basis of songs alone. In such a situation, broadcasting news can give a new identity to radio. Companies say that millions of people are creating news content on social media without any control, whereas FM radio works under pre-decided rules. 2. After 2030, license renewal should be according to the market. Radio companies say that the old auction model no longer fits the current market. Advertisement The market has changed, hence after 2030, renewal of FM Phase-3 license should be done at market determined prices. 3. Annual license fees should be abolished. Radio sector says that a major part of their earnings goes in fees and taxes. In such a situation, it is becoming difficult to invest in content, technology and expansion into new cities. Therefore, there has been a demand to abolish the annual license fee. 4. GST should be reduced from 18% to 5%. Radio companies demand that GST on FM sector should be reduced from 18% to 5%. Companies say that this will help radio survive compared to other media platforms. 5. FM feature is necessary in the smartphone. Most of the smartphones coming nowadays do not have FM radio feature. The industry demands that the government make it mandatory for mobile companies to keep FM receivers active. Radio companies say that in times of disaster, network failure or emergency-like situations, radio has proven to be the most reliable medium. Copyright-Demand for relief on digital streaming issues too: The radio sector has been waiting for a long time for the copyright issues to be resolved. There is also a demand to allow digital live streaming i.e. simulcast (simulcast) of FM broadcasting under the existing royalty system. Increasing crisis on the industry, FM stations are closing in big cities. Now the crisis on FM radio stations is clearly visible in many big cities of the country. Recently HT Media Group has decided to surrender some of its FM radio licenses in big cities like Mumbai, Delhi, Bengaluru and Chennai. Earlier, TV Today Network had also closed its radio operations in many cities and Red FM had also closed one of its stations in Mumbai. The closure of FM stations has also affected employment. This has affected the jobs of thousands of people associated with the industry. Besides, the government’s earnings have also been affected, because after DTH, FM radio is the only media sector that pays license fees to the government. Experts say that the private FM radio sector, which was once counted among the largest media mediums in the country, is now under constant pressure. Radio companies believe that due to high fees, delays in policies and continuous restrictions, the economic condition of the sector has weakened. According to AROI, the country’s media and entertainment sector is continuously growing, but the radio industry is still struggling. According to radio companies, a large part of their total earnings goes in fees and taxes. This includes expenses like GST, annual license fee, tower and spectrum charges. In such a situation, companies do not have enough resources left to invest in content, technology and expansion. The challenges of the radio sector are now beginning to affect the advertising market as well. The number of FM stations increased across the country, but the industry’s earnings did not increase at the same pace. Companies say that if necessary changes are not made in time, the problems of the radio sector may increase further in the future. In such a situation, the question is that the radio which Prime Minister Narendra Modi made a strong medium of communication with the country through programs like ‘Mann Ki Baat’, will ‘Mann Ki Baat’ of the same radio industry now be able to reach the government?
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5 major expectations of radio industry from the government: Increasing crisis in FM industry, if relief is not given then the pace will stop.
