FM players look at new advertisers

FM radio companies may be investing a staggering Rs 1,800 crore collectively to set up new stations which they have bid and won.

But they hope to rope in a whole new breed of advertisers, as radio gets a larger share of the country's total advertising pie, to sustain their ambitious growth and rake in the moolah.

The government had invited bids for over 287 new FM radio stations in 45 cities across the country, bids that were bagged by Adlabs, HT Music, BAG Films, Jagran, Radio Mirchi, among others.

Moving away from the earlier regime of a fixed license fee that bled FM operators, the government now secures 4 per cent of the revenue from each player in a circle.

Preet Bedi, president of Rediffusion, said: "I don't see any problem of sustainability."