IP licensing, policy gaps threaten 2025 digital radio rollout
Policy gaps, cost concerns, and royalty roadblocks make the 2025 digital radio transition a daunting task, as legacy broadcasters call for clarity, support, and a level playing field.
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As the Indian government sets its sights on rolling out digital radio in 2025, broadcasters are signaling caution rather than celebration. With the Ministry of Information and Broadcasting (MIB) yet to finalize a concrete roadmap, key players in the radio ecosystem have raised alarm over the feasibility, cost implications, and policy vacuum surrounding the proposed transition.
“There’s been a lot of deliberations between the radio industry, mobile manufacturers, and policy makers,” said Nisha Narayanan, COO of RED FM and Magic FM. “But I think this is something where a lot still needs to be addressed. It’s not just about switching transmission from terrestrial to digital—it’s about availability, scale, and policy clarity.”
Narayanan’s concerns echo a broader industry sentiment that the digital switchover is not as straightforward as it appears. The radio sector, particularly private FM players, has been grappling with stagnation in ad revenues, high operational costs, and increasing royalty fees.
With over 600 million radio listeners, wherein 20 crores of listenership come alone from the private FM broadcasters, radio players say the shift to digital cannot be abrupt or unplanned.
“Digital and analog radio will have to run parallel for a considerable time. At least for the next five years, we don’t see analog shutting down,” said Narayanan.
The Infrastructure Dilemma
The MIB's plan to launch digital terrestrial radio services in 2025, through the Digital Radio Mondiale (DRM) technology, remains in early stages, despite years of trials by All India Radio. While DRM promises a more energy-efficient and spectrum-saving alternative to analog, the lack of widespread digital radio receivers and a viable cost model has made private broadcasters wary.
“Getting digital receivers in the hands of 400 million listeners is a mammoth task,” Narayanan emphasized. “Without mass availability of affordable sets and without government subsidies, scale will be impossible.”
The digital transition also demands new infrastructure— transmitters, towers, compatible end-user devices —which implies a significant capital outlay for broadcasters. For a sector where many players are still not profitable, adding this burden without guaranteed returns is a tough ask.
Royalty Wrangles and Content Crisis
A significant bottleneck, both Narayanan and other experts noted, is music royalty. In India’s music-dominated radio market, royalty payments to bodies like PPL and IPRS form a large chunk of operating expenses. Broadcasters fear that digital radio, being classified as a “separate medium,” could invite additional royalty demands from music labels.
“Yes, it would,” Narayanan admitted when asked if digital radio would invite more royalty claims. “That is also a concern. The government and regulators need to intervene. Perhaps a three-year trial waiver on royalties could be considered.”
Vineet Singh Hukmani, founder and former MD of Radio One 94.3, echoed this. “The only way out for the government and music labels is to allow FM radio to rebroadcast their existing FM analogue channels as-is and migrate to digital with no extra cost. Only then will radio players be interested.”
Hukmani also warned that existing FM players may experience a “FOMO (fear of missing out) effect” as digital radio opens the doors to new-age bidders—from telecom giants like Jio and Airtel to audio streaming platforms like Spotify and Amazon. “This is what the government may actually be hoping for,” he said, hinting at a silent push toward liberalization of the radio ecosystem.
Policy Paralysis
Underlying all of this is a lack of clear policy. While the MIB has floated ideas and conducted trials, there is no formal consultation timeline, and key questions around license migration, spectrum allocation, bidding process, and pricing remain unanswered.
“There is no clarity,” Narayanan stressed. “How will the current broadcasters convert to digital? What are the commercial implications for those who’ve already paid high license fees? The sector is not growing, and asking us to incur additional costs is not fair.”
To solve this, she recommends forming a Digital Radio Consortium with representation from all stakeholders—broadcasters, policymakers, regulators, device manufacturers, and content creators. “We’ve been talking about it for years, but nothing seems to be really moving.”
The MIB’s challenges are not limited to digital alone. Recent e-auctions under FM Phase III have seen conservative bidding from radio players, reflecting industry fatigue and hesitation.
Storyboard18 earlier reported that the Ministry extended bidding rounds to encourage participation, yet interest remained tepid, with most players citing limited revenue upside and high license costs as deterrents.
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This mood reflects an underlying truth: the radio sector feels neglected, even as new technologies beckon. The shift to digital is being viewed not as an opportunity but as a risk, unless the government brings broadcasters on board with incentives, policy clarity, and infrastructural support.
Despite the challenges, both Narayanan and Hukmani believe in the potential of digital radio. More channels per frequency, targeted and multilingual content, and the possibility of better audience measurement could reinvigorate the medium. “Digital radio can be a first step towards ensuring measurement data or a currency, which is not there in the industry,” Narayanan said.
The way forward, broadcasters agree, must be gradual, inclusive, and balanced. “There’s nothing like this or that,” Narayanan concluded. “It has to be a level playing field—a viable solution and a win-win for everyone.”
