The channel had previously hiked rates in 2013 as reported in afaqs!. Says Nisha Narayanan, COO, RED FM, "There is an inventory crunch in most of the developed and emerging markets and that has made the rate increase inevitable for us. In the metro markets and most of our Tier II and III cities Red FM is very strong and a prominent local brand. A strong brand backed by an efficient sales force has helped these markets to show better than average market growth in volumes whereas the value share needs to improve."
Adding to it, Minal Sharma, national sales head, Red FM, says, "As a media company, our services go far beyond radio and we are today offering 360 degree solutions for our clients. Our initiatives like RED Live, RED Active and RED Digital have also shaped up now and we are able to present to our clients complete advertising solutions. Our advertisers understand the value proposition we offer and come to us because of a differentiated brand, a proven track record, the strength of our network and our ability to provide customized communications solutions. All of this has tilted the balance between demand and supply which we are looking at correcting with the rate hike. We are hopeful that they will continue to support us and give us this desired increase".
Red FM was launched in 2002, and is owned by Sun TV Network. It was acquired from India Today's promoter, Living Media, in January, 2006. In August 2009, S FM or Suryan FM was re-branded as Red FM across 38 cities in India. S FM took over Red FM in August, 2009 and re-branded all its stations to Red FM except for the ones in Tamil Nadu.