FM radio: Tuned out of news, tuned into crisis, seeks reforms

Ever wondered why FM radio stations in India don’t broadcast news? Or why your smartphone does not have an FM tuner app like in other countries? The answer is simple: government restrictions.

FM radio industry says these and other regulations are stifling their business, and the whole FM radio culture will wither on the vine if the government does not help soon. The warning signs are already visible. Last month, HT Media announced it would surrender multiple FM radio licences in key markets, leading to five of its stations going off air on June 15.

The industry has urged the government to urgently carry out key reforms before more media companies close their FM shops, which are already facing challenges from digital audio platforms such as podcasts and streaming.

“The global shift towards on-demand audio is undeniable and well documented,” Nisha Narayanan, director and COO of Red FM, said. But the real question, she added, is whether the FM industry is being given a fair regulatory environment to “compete, innovate and monetise effectively” while making the transition.

For now, the industry’s four key demands are: allow private FM stations to broadcast news and current affairs, a privilege now given only to All India Radio; reduce GST on radio services from 18 per cent to 5 per cent; allow smartphone manufacturers to unlock FM receivers in devices; and implement a model under which radio companies would pay the government a fixed percentage of their actual earnings as licence fee, instead of paying charges linked to old auction prices.

For millions of Indians, FM radio has been a daily companion. During office commutes, in homes, in cars and in small towns where it remains one of the easiest ways to access entertainment and information.

Unlike internet-based audio platforms, radio works without a data connection and can reach listeners even during power cuts or network disruptions.

The government’s view, however, is that FM radio’s challenges cannot be looked at only through the lens of regulation.

Union Minister of Information and Broadcasting Ashwini Vaishnaw said that the sector is facing a broader technological transformation, similar to shifts seen in other industries.

“It’s a major technological change which is happening and we are all aware of how … whether it is news industry whether it is entertainment … the entire shift towards digital has happened consistently over the last few years and this is a very big challenge for the FM industry,” he said.

According to Vaishnaw, such technological transitions inevitably reshape industries, drawing parallels with the decline of landlines after the spread of mobile phones and the shift from conventional vehicles to electric vehicles. “Every such technological change brings changes in the industry structure,” he said. Millenniumpost