Private FM Radio Industry In India

Recently I finished uploading my analysis of Radio Industry in India. It was long due but took some time and some pushing to get this done.

In India the private radio industry is experiencing rapid growth. Though the industry was privatized in late 1990s, the business model was not viable until the phase II of licensing came into force. The phase II fostered competition and brought in new players into the industry.

As part of the overall growth experienced in the Indian economy during last decade, the media and the advertising industry has experienced good growth. While the share of radio industry is far below the international standards, the industry is experiencing good growth. Because the model of the industry is advertisement driven, the radio industry largely mirrors the contours of the advertising industry.

While there are several promising factors that support the growth of the Indian radio industry, there are quite a few factors that might actually delay or dampen the growth. The competition for listeners and advertisers that ushers in price war without any strong differentiating factor among players is not good for the long term health of the industry. The undifferentiated content issue should be addressed immediately and even though the players might be ready now, the regulator has to address the concern.

The phase III licensing will surely enable the industry to move forward and resolve some long standing issues but it is still some time away and the new and existing players should adopt wait, watch and prepare policy until it is announced to make new moves.

The presentation is embedded below.

Feel free to comment and share your feedback.

Private FM Radio Industry In India

View more presentations from Amit Bhargava.