FICCI-KPMG-Report-13-FRAMES

The power of a billion: Realizing the Indian dream 119
Mobile and out of home listenership
drive growth
According to IRS and RAM, people are spending more
time listening to radio as compared to the time spent on
other mediums such as television and print. The increased
engagement with radio is because it is consumed
throughout the day and also there is a consistent increase
in out-of-home listenership through mobile and car stereo.
utilization levels in non-metros), new licenses in the existing
cities and through the addition of new cities as a part of
Phase III. Also, the large players with extensive reach
post phase Phase III may be able to charge a premium by
offering a countrywide advertisement solution.
Listenership %
Medium used Q3'11 Q3'12
Private FM Radio Industry - Incremental
revenues till 2017
Mobile 25.6 37.8
Car/Stereo 1.3 2.2
Source: IRS
In India due to low penetration of mobile internet, radio
broadcasters have started tying up with telecom operators
to offer radio services. Radio Mirchi and Big FM have
already launched applications for mobile radio where a
user can listen to a Mumbai radio station from any city in
India. Mirchi Mobile (the VAS application launched by Radio
Mirchi) is now offered by most of the Telecom companies.
It has been well accepted and has 8-10 million subscribers,
out of which 50 percent are active subscribers. 6
Source: KPMG in India analysis based on industry interviews conducted with key decision makers
at radio stations
Sector projections
The industry is forecast to grow at a 10 percent CAGR till
the Phase III stations start operations (expected in 2014).
Post Phase III, the industry is expected to grow at a CAGR
of 21 percent. Correspondingly, radio’s share of media ad
spends is expected to increase from around ~3.9 percent
currently to 4.3 percent in 2017. 7
Projected revenue growth
Source: Industry discussions with leading industry players, annual reports of ENIL, RBNL, HT
Media, and D B Corp Ltd and KPMG India Analysis
After the release of additional frequencies post phase III,
radio industry is expected to see a steep growth (CAGR
21 percent). The industry will see growth from existing
licenses (through increased prices in metros and increased
06. ENIL Investor Updates for Q1, Q2 and Q3 of CY 2012
07. KPMG in India Analysis
08. Industry discussion with CEO of MY FM conducted by KPMG in India
Trends in the radio industry
Increased innovations in Radio
As the market conditions remain tough and the core
radio business remains under pressure the radio players
are increasingly investing more in innovations targeted
towards driving listenership and increasing engagement
with advertisers. Going forward innovations are likely to
continue to play an important role in growth of the sector
as rates remain under pressure over the medium term and
volume expansion headroom is limited.
There has been an increased focus on bundling activations
with ad solutions. E.g. Dabur Chyawanprash - Immune
India was a school contact programme MY FM initiated
to increase sales of Dabur Chyawanprash. Under this
programme, MY FM played promos in Dhoni’s voiceover
on radio urging people to stay fit by eating Chyawanprash
every day. The team also visited schools and distributed
Chyawanprash samples and spread awareness about the
benefits of eating Chyawanprash. 8
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