FICCI 2013 : RADIO

Radio is the medium to give knowledge, entertainment with information .This medium was very helpful in the time of world war I and II and time of independence.  2012 has been a challenging year for the Indian M&E Industry. Today radio again trying to Renewed hope around the listeners . According to the Federation of Indian Chambers of Commerce & Industry (FICCI)-KPMG Media & Entertainment  report 2013 says that radio is expected to grow at a compound Annual Growth Rate (CAGR) of 16.6 per cent over the period 2012-2017 post the roll-out of FM phase III licensing, 

The Radio Industry had a muted growth of 10 percent in CY 2011 and reached revenues of INR 12.7 billion in CY 2011. The overall of listed radio players exhibited a single digit growth rate during the entire year. The growth in industry's revenues was driven by volume improvements as prices largely stayed stagnant. In certain markets, leaders have been able to raise rates slightly but the overall trend has been to expand revenue through volume enhancement and rate rationalization.

Music sector grew by 18.1 per cent in 2012 to Rs.10.6 billion, and are further expected to rise by 16.6 per cent to reach Rs 22.5 billion in 2017. there were signs of improvement with the Indian Media and Entertainment Industry witnessing an overall growth of 12.6 per cent from R 728 billion in 2011 to Rs 820 billion in 2012 .

The utilization levels have reached nearly 100 percent during peak season in the top eight metros putting pressure on volume based growth from metros in the near future. For non-metro players too, utilization continued to be a level of growth - for example, MY FM's average inventory utilization was at 96 percent in prime time followed by non prime time in the range of 75 to 85 percent .

Radio has been waiting for too long for phase III the associated regulatory reforms. After a challenging year in 2012, there is now renewed hope that in 2013 .