Tag: FM radio

Music Broadcast plans IPO; to make buys

MUMBAI: Music Broadcast Private Limited, which operates one of the leading FM radio stations — Radio City — is planning to list. It is preparing to bring out a public offer of over Rs 500 crore comprising a fresh issue of Rs 400 crore and an offer for sale of 26.59 lakh equity shares by the promoters’ family.

The proceeds from the issue will be utilised to retire debt of around Rs 150 crore, and the remainder to create a “war chest” for future acquisitions.

Radio City 91.1 FM brand has been synonymous with the category since inception in 2001. Innovative programming and marketing initiatives have helped Radio City pioneer FM in India. In phase III auction, the network expanded its footprint by efficiently adding 11 new markets after carefully selecting towns with greater SEC AB population. With the addition of the new towns and addition of Radio Mantra towns, Radio City reaches to 39 most important towns of India dominating the most important advertiser markets. The first FM station will be launching internet radio streams in India with 30 stations and counting

Music Broadcast promoter Jagran Prakashan CFO R. K. Agarwal said that they already filed the DRHP and post-regulatory approvals, and intend to hit the capital market. Most of the funds would be used to strengthen the capital structure so that a war chest was created to acquire more radio stations as and when opportunity arose, he added.

Agrawal said it sees a lot of opportunities in radio as its business has been expanding at a CAGR of 15-16 per cent for several years, and has been operating at a margin of 33 per cent.

Music Broadcast director Apurva Purohit said that the radio sector was the youngest in M&E but was growing fast. Radio’s share in the media and entertainment industry pie was only four per cent of the total advertisement market size due to the tardy pace of regulation, which otherwise could have been as high as 12 per cent.

January 23, 2017
Highlight women’s rights, broadcasters told

NEW DELHI: In the wake of rampant cases of molestations of women, even in public places like in Bengaluru recently on New Year’s Eve, the government has issued a directive to TV broadcasters and FM radio stations to highlight the importance of treating women with respect and equality.

The Ministry of Information and Broadcasting (MIB) on Wednesday sent out an advisory to FM radio and television broadcasters, which have signed the licence conditions and other government regulations, to air programmes on TV and radio to convey the message that women need to be “treated with respect and equality”.

Both TV and radio broadcasters, the MIB said as per stipulations, need to broadcast public interest announcements for maximum of one hour per day suitable/proportional time slots interspersed during that day to highlight the women’s issue.

For FM radio broadcasters, MIB advised two jingles of 60 seconds and 57 seconds duration should be aired. The private FM Radio stations were advised to broadcast the jingles at least twice a day during peak hours.

January 5, 2017
Highlight women’s rights, broadcasters told

NEW DELHI: In the wake of rampant cases of molestations of women, even in public places like in Bengaluru recently on New Year’s Eve, the government has issued a directive to TV broadcasters and FM radio stations to highlight the importance of treating women with respect and equality.

The Ministry of Information and Broadcasting (MIB) on Wednesday sent out an advisory to FM radio and television broadcasters, which have signed the licence conditions and other government regulations, to air programmes on TV and radio to convey the message that women need to be “treated with respect and equality”.

Both TV and radio broadcasters, the MIB said as per stipulations, need to broadcast public interest announcements for maximum of one hour per day suitable/proportional time slots interspersed during that day to highlight the women’s issue.

For FM radio broadcasters, MIB advised two jingles of 60 seconds and 57 seconds duration should be aired. The private FM Radio stations were advised to broadcast the jingles at least twice a day during peak hours.

January 5, 2017
TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
FM P-III auction: EMD, bidders initial eligibility declared

NEW DELHI: Even as the day of the e-auction of the second batch of FM Phase III on 25 October 2016 approaches, the Government has released the earnest money deposit (EMD) by the pre-qualified bidders and the initial eligibility points (IEP) of each of these.

According to a list put up on the website of the Information and Broadcasting Ministry, Entertainment Network (India) Limited of the Times Group tops the list with an EMD of over Rs 375 million (Rs 37.5 crore) thus gaining 15,000 eligibility points. This is followed by Ushodaya Enterprises Private Limited with around Rs 133.3 million (around Rs 13.33 crore) as EMD,getting 5331 IEP and Kal Radio Limited with EMD of Rs 133 million (Rs 13.3 crore) and 5320 IEP.

All the 11 bidders have put in an EMD of less than Rs 130 million (Rs 13 crore). The list of pre-qualified bidders for e-Auction of the second batch of private FM Radio Phase-III channels:

No. Name of Applicant EMD
Initial Eligibility Points

1 Abhijit Realtors& Infraventures Private Limited Rs
2,58,75,000 1035

2 Dharmik InfomediaPrivate Limited Rs
7,75,000 31

3 EntertainmentNetwork (India) Limited Rs
37,50,00,000 15000

4 Hotel Polo TowersPrivate Limited Rs
1,25,000 5

5 JCL Infra Limited
Rs19,50,000 78

6 Kal Radio Limited
Rs 13,30,00,000 5320

7 Malar PublicationsPrivate Limited Rs
5,26,50,075 2106

8 Purvy BroadcastsPrivate Limited Rs
10,32,500 41

9 Rockstar EIPrivate Limited Rs
1,25,000 5

10 Sambhaav MediaLimited Rs
6,88,50,000 2754

11 South Asia FMLimited Rs
4,40,00,000 1760

12 The Malayala Manorama Company Limited Rs 1,75,50,025
702

13 The Mathrubhumi Printing & Publishing Co Ltd Rs 1,76,00,000
704

14 Ushodaya Enterprises Private Limited Rs
13,32,98,950 5331

As stipulated in the notice inviting applications of 20 June 2016, bidders are required to submit their bid for at least one city in the first clock round. Any bidder failing to do so in the first clock round will forfeit its EMD in its entirety. The ministry said any assistance in this regard is available on contact helpdesk +91-124- 430 2039 or support@c1eauctions.com.

The second batch of FM Radio Phase-III channels comprises 266 channels in 92 cities. The channels include 227 channels in 69 fresh cities and 39 channels in 23 existing cities which had remained unsold as there were no bids. As in the first stage, the e-auctions will be conducted by C1 India Private Ltd. A pre-bid conference was held on 11 July 2016, followed by training and then a mock auction earlier this month.

The first payment of 25 per cent of the successful bid amount will be made within five calendar days, and the remaining within 15 calendar days of the close of the auction and notification of successful bidders by the Government.

October 24, 2016
FM P-III auction: EMD, bidders initial eligibility declared

NEW DELHI: Even as the day of the e-auction of the second batch of FM Phase III on 25 October 2016 approaches, the Government has released the earnest money deposit (EMD) by the pre-qualified bidders and the initial eligibility points (IEP) of each of these.

According to a list put up on the website of the Information and Broadcasting Ministry, Entertainment Network (India) Limited of the Times Group tops the list with an EMD of over Rs 375 million (Rs 37.5 crore) thus gaining 15,000 eligibility points. This is followed by Ushodaya Enterprises Private Limited with around Rs 133.3 million (around Rs 13.33 crore) as EMD,getting 5331 IEP and Kal Radio Limited with EMD of Rs 133 million (Rs 13.3 crore) and 5320 IEP.

All the 11 bidders have put in an EMD of less than Rs 130 million (Rs 13 crore). The list of pre-qualified bidders for e-Auction of the second batch of private FM Radio Phase-III channels:

No. Name of Applicant EMD
Initial Eligibility Points

1 Abhijit Realtors& Infraventures Private Limited Rs
2,58,75,000 1035

2 Dharmik InfomediaPrivate Limited Rs
7,75,000 31

3 EntertainmentNetwork (India) Limited Rs
37,50,00,000 15000

4 Hotel Polo TowersPrivate Limited Rs
1,25,000 5

5 JCL Infra Limited
Rs19,50,000 78

6 Kal Radio Limited
Rs 13,30,00,000 5320

7 Malar PublicationsPrivate Limited Rs
5,26,50,075 2106

8 Purvy BroadcastsPrivate Limited Rs
10,32,500 41

9 Rockstar EIPrivate Limited Rs
1,25,000 5

10 Sambhaav MediaLimited Rs
6,88,50,000 2754

11 South Asia FMLimited Rs
4,40,00,000 1760

12 The Malayala Manorama Company Limited Rs 1,75,50,025
702

13 The Mathrubhumi Printing & Publishing Co Ltd Rs 1,76,00,000
704

14 Ushodaya Enterprises Private Limited Rs
13,32,98,950 5331

As stipulated in the notice inviting applications of 20 June 2016, bidders are required to submit their bid for at least one city in the first clock round. Any bidder failing to do so in the first clock round will forfeit its EMD in its entirety. The ministry said any assistance in this regard is available on contact helpdesk +91-124- 430 2039 or support@c1eauctions.com.

The second batch of FM Radio Phase-III channels comprises 266 channels in 92 cities. The channels include 227 channels in 69 fresh cities and 39 channels in 23 existing cities which had remained unsold as there were no bids. As in the first stage, the e-auctions will be conducted by C1 India Private Ltd. A pre-bid conference was held on 11 July 2016, followed by training and then a mock auction earlier this month.

The first payment of 25 per cent of the successful bid amount will be made within five calendar days, and the remaining within 15 calendar days of the close of the auction and notification of successful bidders by the Government.

October 24, 2016
PEMRA Indian content ban to impact broadcasters

MUMBAI: 21 October, 15:00 hours is going to be a landmark day in the history of south Asian media and entertainment. Reason: that’s the day when the Pakistan Electronic Media Regulatory Authority’s (Pemra’s) order issued on 19 October banning all Indian content on Pakistan media will come into effect.

The authority’s order is directed at all FM radio licence holders, landing right holders, and satellite television channels operating in Pakistan. Most TV and FM Radio channels air substantial amount of Indian content, sometimes going up to as much as 50-60 per cent. That was trimmed down to six per cent following the Pakistan crackdown in September, when the old regulation promulgated during General Pervez Musharaff’s reign was activated. And now, the latest order has reduced that to zero.

However, PEMRA, in its order, says that Pakistan’s TV and FM radio services can continue to air up to 10 per cent foreign content from nations other than India. The authority has threatened defaulters with punitive legal action.

Pakistan’s No 1 TV show was Indian import Naagin which was aired by Filmazia and helped its rise in the ratings pecking order while shows such as Yeh hai Mohabbatein helped boost the viewership of channels such as Urdu1 and shows such as Kumkum Bhagya were rated highly on Geo Kahani. Among leading entertainment channels in Pakistan are: Colors, HumTV, Ary Digital, PTV Home, Geo Entertainment, APlus, ATV and Geo Kahani.

According to Pakistan TV executives, the impact of banning Indian content is going to be felt by India’s music labels and TV channels. “Close to about Rs ~~25-30~~ 150 crore of exports are going to vanish for Indian music and TV companies,” says an industry observer.

However, they expect the official ban to continue for only a while, once the political heat between the two nations cools down. “We have already requested that Indian broadcasting companies from whom we have acquired the content to understand this force majeure which has been put on us,” says a Pakistan TV executive. “It is an act of the government over which we have no control, and we have to comply. Of course, our viewers are not going to be happy with such a sudden call to action and their favourite Indian TV shows going off just like that, and our ratings will probably drop. But, we have to deal with it, positively as, it is in the two nations’ interest.”

In the meanwhile, Pakistan channels are looking at filling the gap created by Indian content going off-air with Turkish and American content.

Among the Indian TV networks which will feel the brunt of the ban include Viacom18, Zee TV, Sony and Star India.

Of course, music labels will also feel the impact, but to what extent was not clear at the time of writing.

The point of concern is whether the Pakistani ban will lead to a spurt in piracy of Indian content online and offline. “This is what Pakistan probably has in mind,” says a media specialist. “The official ban will lead to revenue losses on account of trade, but the piracy losses could probably be in multiples. And if Pakistan so desires it can magnify the problem.”

(Updated on 20 October; the figure of losses that Indian broadcasters would suffer was upped to Rs 150 crore after discussions with broadcasters and theatrical film distributors.)

October 20, 2016
PEMRA Indian content ban to impact broadcasters

MUMBAI: 21 October, 15:00 hours is going to be a landmark day in the history of south Asian media and entertainment. Reason: that’s the day when the Pakistan Electronic Media Regulatory Authority’s (Pemra’s) order issued on 19 October banning all Indian content on Pakistan media will come into effect.

The authority’s order is directed at all FM radio licence holders, landing right holders, and satellite television channels operating in Pakistan. Most TV and FM Radio channels air substantial amount of Indian content, sometimes going up to as much as 50-60 per cent. That was trimmed down to six per cent following the Pakistan crackdown in September, when the old regulation promulgated during General Pervez Musharaff’s reign was activated. And now, the latest order has reduced that to zero.

However, PEMRA, in its order, says that Pakistan’s TV and FM radio services can continue to air up to 10 per cent foreign content from nations other than India. The authority has threatened defaulters with punitive legal action.

Pakistan’s No 1 TV show was Indian import Naagin which was aired by Filmazia and helped its rise in the ratings pecking order while shows such as Yeh hai Mohabbatein helped boost the viewership of channels such as Urdu1 and shows such as Kumkum Bhagya were rated highly on Geo Kahani. Among leading entertainment channels in Pakistan are: Colors, HumTV, Ary Digital, PTV Home, Geo Entertainment, APlus, ATV and Geo Kahani.

According to Pakistan TV executives, the impact of banning Indian content is going to be felt by India’s music labels and TV channels. “Close to about Rs ~~25-30~~ 150 crore of exports are going to vanish for Indian music and TV companies,” says an industry observer.

However, they expect the official ban to continue for only a while, once the political heat between the two nations cools down. “We have already requested that Indian broadcasting companies from whom we have acquired the content to understand this force majeure which has been put on us,” says a Pakistan TV executive. “It is an act of the government over which we have no control, and we have to comply. Of course, our viewers are not going to be happy with such a sudden call to action and their favourite Indian TV shows going off just like that, and our ratings will probably drop. But, we have to deal with it, positively as, it is in the two nations’ interest.”

In the meanwhile, Pakistan channels are looking at filling the gap created by Indian content going off-air with Turkish and American content.

Among the Indian TV networks which will feel the brunt of the ban include Viacom18, Zee TV, Sony and Star India.

Of course, music labels will also feel the impact, but to what extent was not clear at the time of writing.

The point of concern is whether the Pakistani ban will lead to a spurt in piracy of Indian content online and offline. “This is what Pakistan probably has in mind,” says a media specialist. “The official ban will lead to revenue losses on account of trade, but the piracy losses could probably be in multiples. And if Pakistan so desires it can magnify the problem.”

(Updated on 20 October; the figure of losses that Indian broadcasters would suffer was upped to Rs 150 crore after discussions with broadcasters and theatrical film distributors.)

October 20, 2016
Last date for application in auction of second batch of 266 FM channels in Phase III extended by one week

NEW DELHI: The last date for receipt of applications for the e-auction of the second batch of FM Radio Phase-III channels comprising 266 channels in 92 cities has been extended to 8 August 2016 by 5 pm.

Similarly in an amendment issued today, the Information and Broadcasting Ministry has extended the last date for issuing clarifications to 26 July 2016, Earlier, these dates were 1 August and 21 July 2016 respectively.

The auctions, which include 227 channels in 69 fresh cities and 39 channels in 23 existing cities which had remained unsold as there were no bids, are to be held around mid-September this year.

Changes in Networth Clause

The Ministry also made some changes in the networth requirements of applicants, which can be seen on its website mib.nic.in. Essentially, this does away with networth till 30 June 2016 but remains confined to three years or from incorporation till 31 March 3016. However, provisional financial statement will have to be given till 30 June 2016.

Recent increase in FDI increase included

Additionally, the Ministry made public some queires in the NIA and their answers from the Ministry. Among other clarifications, the Ministry said that the FDI Cap of 26% prescribed under FM Radio Phase III Policy guidelines of 25 July 2011 were being raised to 49% in accordance with the Ministry order of 21 July 2016.

As in the first stage, the e-auctions will be conducted by C1 India Private Ltd and the process will commenced on 20 June with the notice inviting applications (NIA).

A Pre Bid conference was held on 11 July 2016 at 2:30 PM and the last date for seeking clarifications on NIA was 14 July 2016 by 12:00 noon.

The last date for submission of Applications will be followed on 16 August with the publication of ownership details of applicants. The Bidder Ownership Compliance Certificate will be issued on 22 August 2016.

The Pre-Qualification of Bidders will be done by 1 September 2016 or completion of requisite formalities whichever is later, followed four to five days later by a Mock Auction.

The main auction will start four days after the mock auction.

July 27, 2016