Private FM radio channels in India may not be able to broadcast their own news bulletins anytime soon, despite the consistent push from the stakeholders and government being engaged in consultations to permit private FM radio channels to broadcast news bulletins alongside the services provided by All India Radio (AIR).
The development comes at a time when the Minister of State for Information and Broadcasting and Parliamentary Affairs, Dr. L Murugan recently hinted at working on the same.
“Right now detailed conversations are going on around this (to allow private FM channels to run news bulletins). We will take a call after analysing all the inputs received from various stakeholders, including from the industry,” he said at an event, last month.
According to a source close to the development, Storyboard18 has learned that the decision has now been delayed as the sector continues to face pressing challenges and demands.
Read more: Radio sector demands de-linking NOTEF, GST revision, and mandate for ‘radio on mobile’
For instance, the sector’s demand for a 70% reduction in the reserve price of the radio channels in the upcoming auction. Also, the demand to cap the annual licensee fee at 4% of gross revenue for existing frequencies and eliminate the base price for new channels.
The decision to permit private FM radio channels to broadcast news bulletins is also stalled because of content regulation.
The government proposed private players run “only news capsules approved/shared by the government on the channels, which the stakeholders haven’t agreed upon,” according to a senior industry stakeholder. The sector endorses self-regulation and has sought ‘freedom’ over content.
It is to be noted that unlike in other countries where private radio stations seamlessly integrate news into their broadcasts, private players in democratic India are prohibited from broadcasting news; except for news bulletins from AIR that are carried in an unaltered form.
The stations are only allowed to share information related to local events and local issues such as traffic blockades, examination updates, and utility services updates.
However, the private players have been urging authorities to allow them to broadcast independent news and current affairs bulletins, for a long time.
According to the stakeholders, the current limitation not only restricts the sector from additional revenue streams but also restricts the medium from becoming an authentic source of information— especially in the age of misinformation.
If implemented, the feature can help the sector double its revenue, shared a senior official from a private FM radio channel.
“This can help double the listenership of the radio channels and will help us increase the ad rates too,” it was added.
Sunil Kumaran, Chief Operating Officer, BIG FM, told Storyboard18 that the radio industry is reeling under multiple constraints, including revenue disruption caused by the rise of digital offerings and on-demand platforms, regulatory restrictions on content and fee structures, and technological limitations.
For the industry to realise its true potential, it is imperative that the government addresses each of these issues.
“This includes relaxing content regulations, providing incentives for investing in new technologies, supporting ad revenues, offering technical assistance and infrastructure upgrades and providing regulatory clarity on how FM can coexist and thrive alongside digital platforms”, he shared.
Radio understands the pulse of the city best, making it the perfect medium to provide daily news and current affairs on a real-time basis. It will also bring in a new set of listeners who will tune in for their daily fix of regular updates, thus expanding its reach.
Kumaran added, “We are maintaining continuous dialogue on these with the authorities and hoping that these will come through soon.”
“…the current affairs has no definition in any statute and hence almost every topic is banned. FM Radio has a history of being a very responsible medium and worked closely with the Government during emergencies; during Covid, it worked very closely with the Ministry of I&B in broadcasting the right information and countering rumours,” Nisha Narayanan, COO & Director, Red FM & Magic FM, recently shared at a consultation meeting.
“For years, private radio has been synonymous with entertainment, music, and light-hearted banter. But the power of radio extends far beyond just that; it has the unique ability to connect with people in real time, build trust, and amplify the issues that matter to local communities. It is particularly impactful because of its natural NAT-Local ability to deliver news from a local perspective while keeping the national agenda in focus. It reaches the most remote corners of our country, and this accessibility can now serve an even greater purpose: keeping the nation informed,” she told Storyboard18.
Back in 2017, in an affidavit filed in the Supreme Court, the Centre said it could not grant permission for the broadcast of news content on private radio channels as several anti-national radical elements within the country and also from abroad could misuse it for propagating their agenda.
Read more: Radio players increase ad inventory instead of pushing for rate hike to stay afloat
“Broadcast of news by these stations/channel may pose a possible security risk as there is no mechanism to monitor the contents of the news bulletins of very such station,” it was added.
FM radio firms, however, have been reiterating their demand to broadcast news.
In September 2023, the Telecom Regulatory Authority of India (TRAI) put forth the proposal to permit private FM stations to broadcast news and current affairs programs, limited to 10 minutes per hour.
To ensure responsible broadcasting practices, the regulator said that the program code of conduct applicable to AIR should also be extended and applied to the private FM stations.
Radio, though the smallest segment of the Media and Entertainment (M&E) industry, boasts a listenership of 20 crores in India and recently celebrated its 100th anniversary. The revenue of the sector is about Rs 3000 crores. The mass medium, however, is plagued with various issues.
For one: the issue of de-linking NOTEF (Non-Refundable One Time Entry Fee). Industry members continue to raise concern over the linking of annual license fee to the highest OTEF which has been fatal to the FM Radio sector.
TRAI has also noted that the current methodology of determining licence fees impinges on the business of the FM radio operators who are required to pay annual licence fees for a city at 4% of their annual gross revenue or 2.5% of the NOTEF, whichever is higher.
It is also to be noted that print and radio are direct competitors in local cities and towns. However, print is charged with 5% GST, while radio is charged with 18%.
The sector has also been urging that built-in FM radio receivers in mobile handsets must not be subjected to any form of disablement or deactivation.
Amidst all these challenges, the crippling sector now deals with historically low advertising rates and expected to grow by a compound growth rate of a mere 2.1% between 2023-2028.