Star TV is likely to sign within a week an agreement with the PK Mittal-promoted Music Broadcast Pvt. Ltd. for supply of radio software content. Star will be an exclusive producer for Music Broadcast. Star is also talking to Dabur and numerous other radio licensees to be their content suppliers.
The Music Broadcast radio service is scheduled to start at Bangalore in mid-April. The other centres will be launched by the end of this year. Music Broadcast has got license for Bangalore, Delhi, Mumbai, Nagpur, Patna and Lucknow. Star will supply between 8-10 hours of original radio content to Music Broadcast and will be paid at a negotiated price.
Besides producing audio programming, Star will be Music Broadcast's agent for ad sales and marketing. It will be paid a commission of 10 per cent on the advertising revenue earned. The other significant players like Radio Midday and Times of India have their own content and marketing team. With a presence in radio, Star will be available in all the platforms.
The company will have the advantage of offering cross-ad packages to its clients. As a direct entry was not allowed, Star TV has decided to get into content and marketing alliances with local companies.
The government had announced that it would shortly float tenders for an additional 80 private FM radio stations. This is in addition to the earlier 100 centres completed. But many significant players like Zee TV have withdrawn as they found the licence fee too steep.