This development is seen as a significant step in ensuring a fair and sustainable pricing framework for private FM radio stations.
The Information & Broadcasting (I&B) Ministry has given its nod to updated rates for advertising on private FM radio stations to promote government policies and programs as reported by The Hindu. These revised rates come after seven years, following recommendations from the Rate Structure Committee established by the Ministry. This development is seen as a significant step in ensuring a fair and sustainable pricing framework for private FM radio stations.
The new rates, approved in September, include a 43% increase in the base rate, accounting for the rising cost dynamics from December 2015 to March 2023. With this adjustment, the gross base rate for FM radio advertising will rise from Rs. 52 to Rs. 74 per ten seconds.
The Ministry states that this rate adjustment aims to align with current market rates and will also benefit over 400 operational community radio stations across the country.
Additionally, the Ministry will continue to use the existing pricing formula to calculate city-wise rates. This formula considers factors such as city population and listenership data from the Indian Readership Survey (IRS) of 2019.
According to the Ministry, based on this formula and the enhanced base rate, almost all private FM radio stations will experience varying percentage increases in rates, primarily based on their listenership data. This adjustment is expected to provide added value to both FM stations and the clients of the Central Bureau of Communication (CBC).
In accordance with this formula, the rates for 106 stations are set to increase by 100%, by 50% to 100% for 81 stations, and by less than 50% for the 65 stations with available listenership data.