MUMBAI: The figures around the radio industry are not just on-air claims anymore; they have been documented by the CII-BCG (CII Big Picture Summit) in a report. It has been revealed that the radio industry in India is expected to grow from Rs 2,300 crores in 2015 to anywhere between Rs 5,000 and 6,000 crores by 2020. It might sound promising; however, it still continues to be the smallest share from the overall pie, in comparison to print and television.

The Indian radio industry is expected to grow in the range of 18 per cent to 20 per cent CAGR by 2020. The report stated that the positive impact of the Phase III auctions is what will boost radio advertisement growth by 6 to 8 per cent by 2020. The report also stressed that this could happen if the radio industry invests aggressively in new channels and content, which will be the deciding factor. Leveraging the opportunity in the live scene with musical award shows and other activities, will also help radio networks involved to gain “brand awareness and offer advertisers with a strong advertisement medium.”

The Rs 2,300 crore-valued radio industry has registered 11 per cent CAGR over 2010-2015. The paper stressed that in India, radio continues to remain the media of choice for music discovery, even in developed markets, and hence it attracts interest from publishers and advertisers.

Private Radio networks, which will cover 75 per cent of the Indian population after the Phase III auctions roll-out, will attract more advertisers and strengthen their hold in Tier II and Tier III cities. The paper cited the example of the Phase II auction, when the radio industry’s advertising share increased from 1.6 per cent to 3.6 per cent in 2009. A similar result will reflect in the radio industry after this auction as well.

As per the paper, the radio industry is expected to invest up to Rs 4,000 crores in Phase III auctions, including auction, migration fees and others. In five years’ time, the radio industry will grow double its size, and to understand the industry, it is important that there is a methodology to measure listeners and effectiveness of radio stations.

Another major issue related to the radio industry is the tiff between radio and music players. The radio industry in India has to pay two per cent net advertising revenue as per the Copyright board. However, this has not gone down well with the music industry, as the decision has been challenged in court.

In addition to news and current affairs, more comprehensive programming could boost the radio industry and provide enhanced access to consumers. Additionally, the ability to broadcast live across stations could reduce the cost for private operators.

The latest paper on the M&E (Indian Media & Entertainment) sector, pegs the industry at Rs 2, 45,000 crore by 2020. Backed by infrastructure and the support of the government and the industry itself, the M&E sector has the potential to reach $100 billion by 2025 (including distribution revenues from broadband) which is robust growth for the industry.

The report titled ‘Vision 2020 Document on Media & Entertainment Sector’ was discussed at the 4th edition of the CII Big Picture Summit in New Delhi. The annual event by CII is the platform to address concerns and challenges of the industry among stakeholders, develop newer ideations, and suggest measures for creating an eco-system to accelerate the growth of the industry.