Train travellers can soon look forward to some entertainment on long journeys. The Railways will be looking to partner with private FM radio stations to provide on-board entertainment through the PA systems on trains.
FM radio operators believe this will not only open up avenues to increase their reach but also offer a new revenue stream.
While the exact details of how these services will be made available are not yet clear, operators say it is typically done by offering a curated radio service developed specially for the Railways.
Prashant Panday, CEO and Managing Director at Entertainment Network (India) Ltd, which runs Radio Mirchi, said the move can help FM radio players earn additional revenues by aggregating audiences and letting them tap into a certain set of advertisers.
It can also be a good co-branding opportunity for operators, he pointed out. Radio Mirchi already offers a curated radio service at T3 of the Delhi International airport.
Harrish Bhatia, CEO of MY FM, said policymakers are realising the power of the medium and such initiatives will help boost the sector.
Possible business modelsExperts say the service can be brought in via two models. One, the Railways can tie up with FM radio stations as content providers for a fee, which they can recover through ads. Two, they can run a co-branded service with an FM radio station, where the costs will be incurred by the FM radio players and the Railways can earn a share of the profits.
Abraham Thomas, CEO of Radio City 91.1 FM, called it a pioneering step.