Government Revises Advertisement Rates for Private FM Radios After Seven Years

Government Revises Advertisement Rates for Private FM Radios After Seven Years
Government Revises Advertisement Rates for Private FM Radios After Seven Years
Government Revises Advertisement Rates for Private FM Radios After Seven Years
Government Revises Advertisement Rates for Private FM Radios After Seven Years

Government Revises Advertisement Rates for Private FM Radios After Seven Years

Government Revises Advertisement Rates for Private FM Radios After Seven Years

Government Revises Advertisement Rates for Private FM Radios After Seven Years

In a significant move, the Ministry of Information and Broadcasting has revised the Central Bureau of Communication (CBC) advertisement rates for private FM radios. This adjustment comes after seven years and is driven by various economic factors. The base rate has witnessed a substantial increase of 43 percent, with city-wise rates for stations set to rise significantly based on listenership data.

The Ministry approved the new rates in September 2023, considering the changing cost dynamics from December 2015 to March 2023. This adjustment raises the Gross Base rate for FM radio advertisements from 52 to 74 rupees per ten seconds. The primary objective of this revision is to align the rates with the prevailing market conditions. Importantly, this increase in the Gross Base Rate will have a positive impact on the 400-plus Community Radio Stations currently operating in the country.

City Wise Rates and Their Determinants

Expanding on the base rate adjustment, the Ministry has opted to retain the existing pricing formula for calculating city-wise rates. This formula takes various factors into account, including city population and listenership data from the India Readership Survey (IRS) of 2019. With the enhanced base rate serving as a foundation, most private FM radio stations are set to benefit from these new rates, with varying percentage increases contingent on their listenership figures. According to the formula, 106 stations will experience a 100 percent rate increase, 81 stations will see a 50 to 100 percent increase, and 65 stations with available listenership data will encounter a rate increase of less than 50 percent.

The Rate Structure Committee for Private FM Radio Stations was established by the Ministry last year with the responsibility of evaluating and recommending new rates. These rates, last revised in 2015, underwent a rigorous evaluation process that involved consultations with industry experts and stakeholders. Input was also solicited from entities like the Association of Radio Operators of India.

Government’s Outreach and Communication

Private FM channels have gained immense popularity across India, boasting over 380 stations in various Indian languages and operating in most states. These channels serve as a crucial platform for the Central Government to communicate its policies and programs to the public, ensuring that citizens can access the various schemes and welfare initiatives. The new advertisement rates for private FM radio stations, based on the recommendations of the Rate Structure Committee, signify a significant step in the Ministry’s ongoing efforts to establish a fair and sustainable pricing framework for private FM radio stations.

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