'Heavy licence fee takes its toll on Pvt FM players'

[icernet-admin at listserv.cddc.vt.edu]

A heavy licence fee structure has inhibited the launch of niche commercial 
radio stations in India, said Steve England, who runs a UK-based company - 
S2Blue - that produces radio commercials, radio and TV jingles, custom 
music production and soundtracks for TV commercials. 

Diverse programme formats have also not emerged because of a regulated 
environment and a huge payout to the government. “All private FM radio 
stations are almost having the same content format. They are desperate to 
have the largest part of the market because of the drain on their resources 
due to a high licence fee,” said England. 

Urging the government to allow news on private radio stations, England said 
that this is “an unhealthy trend” and is “only helping All India Radio.” 
News is an important content element. “Brief news bulletins of 2-3 minutes 
actually help music stations draw in listeners,” he said. 

Private FM radio stations are only working out mass appeal formats. A 
sensible licence fee and deregulation will help change that and expand the 
sector, he opined. 

Drawing a contrast between radio today and the way the Indian television 
industry grew, England said private radio stations should enjoy similar 
freedom. “The satellite TV channels grew under an unregulated environment. 
Private radio stations should be allowed to flower under similar 
circumstances,” he added. 

Source:
http://www.screenindia.com/fullstory.php?content_id=6547