Following Mumbai’s only indie FM station switchoff May 27, another station, Go 92.5, backed by the Mid-Day media house, has served notice on the government that it may close in 2004. This is attributed to both the high license fees and low revenues.
The FM frequency, opened in 2002, started with license fees of $2.17 million, compounded 15% annually. With radio ad spends amounting to less than 1% of the total $172,000,000 ad spend, none of the FM players is turning a profit.
The FM players would like to see the license give way to a revenue sharing model.