MUMBAI: The Phase III auction is around the corner, but there has been no major study or report until recently, providing figures or value to the Indian Radio industry. According to the report 'India FM Radio Industry Forecast & Opportunities, 2019' by TechSci Research, the Indian radio industry will touch $656 million by 2019.

The team of researchers took about a month to complete this study. "We have shown real time figures from 2009 to 2013 and forecasted the industry from 2014 to 2019," TechSci (Research) research director Karan Chechi told Radioandmusic.com.

He further added, "The radio industry is moving towards its third phase of auction, where the government has plans to auction 839 radio channels in 227 new cities in addition to the existing 86 cities. This Phase III auction is offering embryonic opportunities for radio industry with major focus on tier II and tier III cities. The study elaborates the impact of this auction on the Indian radio industry with growth potentials."

The study focused on identifying the potential market for private FM radio stations, key target segment of listeners' base, untapped market and potential tariff plans. Furthermore, since the Phase III auction is focusing on tier II and tier III cities, the study also included the financial feasibility of setting up a new FM radio station in a tier II city.

Chechi also pointed out that apart from Phase III yet another turning point in radio industry will be the diversification of content. He said, "In addition to Phase-III, the focus will be on diversification, with the shift of program content from targeting only one segment of listeners (Hindi/regional language programs for both male and female), to other segments such as English shows for both male and female and women centric shows in Hindi/regional language."

States like Delhi/NCR and Maharashtra are the largest revenue generating markets for FM radio, the report stated.

A study was conducted on the FM radio market which includes public player Prasar Bharati, and private players such as Entertainment Network India Limited, Sun TV Network Limited, Reliance Broadcast Network Limited, Music Broadcast Private Limited, D.B. Corp. Ltd, T.V. Today Network Limited, HT Media Limited, Next Radio Limited, B.A.G. Films & Media Limited. The report also stated that in 2013, Prasar Bharati (All India Radio), a public FM radio company accounted for the largest revenue share.

Meanwhile, the Indian FM radio industry's contribution was merely 4 per cent in 2013.

"Alternate advertisement channels such as promotion of concerts, plays, product demonstrations and other live events such as music awards, sports events and youth events, which are directed towards creating a direct customer connect, are also contributing to growth in the FM radio industry in India.", said Chechi.

The report analysed the recent trends in the industry like focus on rural market, live events and internet radio amongst the other trends.