Radio Industry

The "radio industry" is a generic term for any companies or public service providers who are involved with the broadcast of radio stations or ancillary services. Radio industry globally is a well established and a mature medium of communication and used by advertisers affectively in brand building and sales promotion. The medium also provides entertainment and information to its consumers and hence acts as an important business medium of communication and entertainment. Radio broadcasters can be broken into at least two different groups.

Public service broadcasters are funded in whole or in part through public money. This may be through money received directly from the government, or as a license fee. The license fee is typically protected by law and set by the government, and is required for any household which contains equipment which can be used to receive a TV signal. Ex- AIR

Commercial broadcasters (also called Independent Local Radio ) are largely funded through the sales of advertising spots on their radio station. Commercial stations are often quite local, and may have some public service commitments within their permit. Ex- Fm stations.

In India the private radio industry is experiencing rapid growth. The impetus was provided by the government licensing to private houses, in three phases as of today. Though the industry was privatized in late 1990s, the business model was not viable until the phase II of licensing came into force. The phase II fostered competition and brought in new players into the industry. The new and the old players largely belong to established business groups who in turn are part of larger media houses. These players also control a large chunk of radio business in the country.

As part of the overall growth experienced in the Indian economy during last decade, the media and the advertising industry have experienced good growths. While the share of radio industry is far below the international standards, the industry is...