The Resurgence of Radio in India|Business Strategy|Case Study|Case Studies

The Resurgence of Radio in India

            
 
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Case Details:

Case Code : BSTR032
Case Length : 13 Pages
Period : 1993 - 2002
Organization : ---
Pub Date : 2006
Teaching Note : Available
Countries : India
Industry : Media and Entertainment

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note

Radio has had a tremendous impact on society in the 20th century. Though radio was invented during the late 1890s, public radio services offering information and entertainment content started only in the mid 1910s, first in the US and then in European countries (See Exhibit I for a note on how a radio works).

World War I hampered public radio services to some extent, but at the end of the war, the business picked up momentum. Advertising on the radio started first in the US in 1920; this marked the beginning of commercial radio services. Radio broadcasting stations provided scheduled programs of lectures, news bulletins and other recreational and informative material. On account of the growing popularity of such radio programs, the demand for commercial airtime increased heavily by 1923, making radio broadcasting a profitable business. The far-reaching capability and immediacy of radio made it very popular across the world by the late 1920s (Refer Exhibit II for a brief note on the history of radio worldwide). In India, radio broadcasting started in 1927 at Mumbai and Kolkata with two privately owned transmission stations.

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In 1930, the government acquired these stations and started operating them under the Indian Broadcasting Service. This service was later renamed AIR in 1936 and has since been operated as an independent Government department. From 1957, the radio service also came to be referred to as 'Akashvani.'2 Vividh Bharati, AIR's main entertainment channel, was started in the 1960s.

Commercial broadcasting was first introduced on Indian radio in 1967. In the mid-1970s, AIR started offering sponsored programs. Radio's commercials started during the early 1980s on its primary channel Vividh Bharati and were extended to other channels by the mid-1980s. All these initiatives increased the popularity of radio in the country and also generated huge revenues for AIR (from sponsorship fees and commercial advertisements). AIR also operated an External Services Division (ESD) that broadcasted programs in 24 languages (16 foreign and 8 Indian, languages). These programs generally consisted of commentaries on current affairs; review of Indian press coverage; news bulletins; talk shows on socio-economic, cultural, historical and political subjects; and classical, folk and popular music from all corners of the country...

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2] A Hindi word, literally meaning 'sound from the skies.'

 

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