Cricket World Cup is music for FM stations

Likely to generate advertising revenue of Rs 55 crore.

With the government planning to allow live commentary of sporting events of national importance on private FM radio stations, radio companies expect to generate Rs 55 crore in advertising revenue during the 45 days of the World Cup cricket tournament starting March 13. This is about 16 per cent of the total advertising revenue of around Rs 400 crore that FM radio stations expect to garner this year.

It will also be almost 10 times the revenue that would be generated by All India Radio (AIR) during the World Cup. Interestingly, the same amount was generated by AIR during the previous edition in 2003.

"Similar revenues as the last edition will be will be raised this year too," an AIR official said.

The radio rights are with Nimbus Communications, the Global Cricketing Corporation (GCC) mandated marketing agency in India. GCC is organising the 2007 cricket World Cup.

Currently, live coverage of any sporting event is not allowed on private FM stations. But highly-placed ministry sources said that a Cabinet note has been prepared to allow FM stations to cover this year's cricket World Cup.

"The decision is expected before India plays its first World Cup match on March 17," a senior Information &Broadcast Ministry official said. Even Priyaranjan Dasmunsi, the Minister of Information and Broadcasting recently said that allowing sports coverage on private FM stations will be a priority, as it was non-news.

Once allowed, the radio companies will have to bid for the rights on a city-to-city basis, industry sources added.

Radio companies said that revenue will be raised from live matches as well as special interactive shows built around the World Cup.

"We are already in talks with advertisers like LG, Pepsi, Hindustan Unilever Limited , Procter & Gamble (P&G) and Emami, among others for spot sales. The effective spot rates are likely to be around Rs 2,000 per 10 seconds," a senior FM radio company executive said.

Matches involving the Indian team are expected to generate Rs 6 lakh per match for each private FM station in the metros.There are around 50 private FM stations currently in operation with 32 being in metros.

"Live radio commentary of sporting events will give us an additional revenue stream. We can do so much with the programming and packaging if we are allowed to broadcast sports," Rajiv Mishra, president of Association of Radio Operators in India (AROI) and CEO, Radio Masti said.

The FM radio sector is growing at a scorching pace. By July, there will be 200 stations operational in over 70 cities.