The recent downturn in the economy was global in scope, and media companies all over the world found themselves in the same boat, trying to find new sources of income while cutting costs and operating more efficiently. Among the cutbacks used in India – turning stations off to save on royalty costs.
According to an article in the Indian Express Limited, radio groups in India did many of the same things that US groups did. They cut staffing. They worked on creating new income streams, via the internet and from other sources. They became more creative in helping clients create effective marketing programs.
According to the report, the combination of client satisfaction and radio’s ability to deliver results, the gradual improvement of the economy in general and the more efficient overhead are combining to bring the medium back to profitability.
Indian radio groups did one thing, however, that has not been necessary in the US. They simply turned off many of their lower-performing stations during overnights, simply to avoid royalty costs.
RBR-TVBR observation: In the US, the result is likely to be felt for more than just overnight. Many stations are sure to simply abandon music and adopt a spoken word format of one kind or another. The bottom line is that you really have to wonder about a policy that makes silence the better option for a broadcast station.
