The Ministry of Information and Broadcasting has unveiled new advertising rates for private FM radio stations, marking a significant development in the industry. To ensure fair and sustainable pricing for advertisements on private FM radio stations, the Ministry of Information and Broadcasting has recently approved new advertising rates.
The surging popularity of private FM channels in India, which are around 388 in number and operate in various Indian languages across multiple states, has become a crucial platform for the Central Government to disseminate information about its policies and initiatives. This enables citizens to access various government schemes and welfare programmes. These new rates were determined based on recommendations from the Rate Structure Committee established by the Ministry, marking a significant step in this ongoing effort.
The new rates, sanctioned by the Ministry in September 2023, include a substantial 43% increase in the base rate. This increase accounts for the changing cost dynamics from December 2015 to March 2023. The gross base rate for FM radio advertisements will therefore increase from 52 to 74 rupees every ten seconds. This adjustment aims to align the rates with current market standards and is anticipated to benefit over 400 operational community radio stations in the country.
Additionally, the Ministry has opted to maintain the existing pricing formula for determining city-wise rates. This formula considers factors such as city population and listenership data from the 2019 India Readership Survey (IRS). Combining this formula with the enhanced base rate, most private FM radio stations will experience varying percentage increases in their rates, depending largely on their listenership. According to this formula, 106 stations will witness a 100% increase, 81 stations will observe a 50–100% increase, and 65 stations with available listenership data will experience an increase of less than 50%.
The Rate Structure Committee for Private FM Radio Stations was established by the Ministry in the previous year to evaluate and propose new rates, as the previous rates had not been revised since 2015. The Committee formulated its recommendations following extensive consultations with industry experts and stakeholders, while also considering input from organisations such as the Association of Radio Operators of India.
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