Posts Tagged ‘red fm’

SFM rebranded as Red FM

August 13, 2009

In what is being pegged as one of the biggest rebranding exercises across private radio stations, SFM has been rebranded as Red FM. All the 38 stations of SFM – which comprise 23 stations of South Asia FM (SAFL), 14 stations of Kal Radio and one station of Udaya FM – will undergo a change in identity.

With this, the rebranded Red FM will have a total of 41 stations in its kitty, including Red FM’s existing stations in Mumbai, Delhi and Kolkata. The new brand identity of the radio venture will be unveiled on August 14 in the North, East and West regions; and in the South, the new brand will go on-air on August 17.

K Shanmugam, chief executive officer of the unified Red FM, says, “Consolidating our radio FM business under the Red FM brand was a strategic move by us to offer pan-India audience a single, strong brand representation. This will help us unify our programming across key cities and help garner a larger share of ears.”

“Advertisers can now reach out to a wider listener base and can capitalise on the unique Red FM programme format. Launching the brand nationally fulfills our vision of creating the single largest FM radio station network across the country.” Shanmugam says.

The exercise will result in a shift in the programming style, content, format and presentation of the stations. All the rebranded stations will incorporate Red FM’s theme and the tagline of ‘Red FM, Bajate raho’.

According to the company, which has a footprint in 16 states, the network reaches more than 20 million listeners. To communicate the change in identity, the rebranded station has lined up a series of marketing activities, including ATL, BTL and OOH initiatives, in all the cities where the new Red FM has its presence.

The stations which will come under the rebranding exercise are: Pune, Nashik, Aurangabad, Nagpur, Mumbai, Bangalore, Mysore, Mangalore, Gulbargha, Kochi, Trivandrum, Trissur, Kannur, Kozhikode, Hyderabad, Vijayawada, Vizag, Warangal, Rajmundry, Tirupathi, Ahmedabad, Rajkot, Vadodara, Lucknow, Kanpur, Allahabad, Varanasi, Bhopal, Indore, Jabalpur, Jaipur, Bhuvaneshwar, Asansol, Siliguri, Kolkata, Gangtok, Guwahati, Jamshedpur, Shillong, Aizawl and New Delhi.

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First on TvToday >> S FM gana be Red Fm

July 26, 2009

There have been strong speculations about SFM set to be rebranded as Red FM. We has not received any official confirmation in this regard from either Red FM or SFM despite repeated attempts.

SFM, a part of Sun TV’s subsidiary, South Asia FM, has around 45 FM stations across the country with a very strong presence in South India. Red FM, on the other hand, is present in Mumbai, Delhi and Kolkata.

It may be recalled that Sun TV Network had taken a 48.9 per cent stake in Red FM way back in 2007, which is said to have provided a common advertising sales platform for the two FM players. ValueLabs, a Hyderabad-based IT company, NDTV and Astro Group hold minority stakes in Red FM. The strategic alliance with Red FM was also aimed to further its FM radio business.

Since SFM is seen as a stronger brand in the South, will rebranding to Red FM make sense from the Southern viewpoint? exchange4media.com spoke to a few media planners to find out more.

According to Sandeep Lakhina, COO (South Asia), Starcom Worldwide, “Since SFM is a very strong brand in the South, so definitely a rebranding to Red FM will have a positive impact and add value to the synergy. While radio is usually a local medium for clients, however, having a national reach particularly where it has a strong presence certainly helps, therefore, unifying of the brands may have an adverse effect.”

Sanjay Sharma, Director, Synergy, observed, “Red FM is known in the metros – Mumbai, Delhi and Kolkata – and having an extra 45 stations reach, especially in SFM strongholds mainly in the South, makes absolute sense for rebranding to Red FM.”

Kunal Jamuar, GM, Madison Media, noted, “I don’t see rebranding to Red FM making a huge impact as there is no station loyalty, but song loyalty, among the listeners. However, if there is a change in the content, then we can expect a strong possibility, especially in terms of attracting new listeners, but even from advertising point of view, I don’t see much of an impact, since the two have been in partnership for a long time now.”

If true, then possibly it would be a first-of-its-kind, wherein an FM station has a complete transition into another brand name. This could well become one of the biggest consolidations in the FM space so far, and that too before the Phase III rollout. Media planners have already given the thumbs up to the rebranding as they see it having a positive impact, particularly from the client’s perspective, keeping in mind the wider reach the FM station will now possess.

Top FM stations plan ad tariff hike

September 29, 2008

Faced with shrinking advertisement pie due to an increase in number of players, the top few FM radio stations in the country are planning for a hike in advertisement tariff.

The stations are also planning to add value-added service such as packaging advertisement with on-ground campaigns to battle competition.

Taking the lead, the Sun TV Network-owned RED FM, which operates in Mumbai, Delhi and Kolkata, will be taking a 15-20 per cent hike in its advertisement tariffs with effect from October 1.

“We are rationalising the rates after almost one-and-a-half years,” Mr Abraham Thomas, Chief Operating Officer, told Business Line.

On-ground campaigns

RED FM is also offering on-ground campaigns along with advertisement for its clients.

Industry sources said the advertisement market in the radio segment, including All India Radio, is estimated to be Rs 750 crore.

The market grew last year with new stations coming up, with the total number of operating stations presently being about 250.

RED FM was ahead in Mumbai circle according to the latest RAM (Radio Audience Measurement) by Neilson’s.

RAM data shows that RED FM clocked a weekly average of 44.89 lakh listeners over the last 52 weeks, with a 7.3-lakh lead over its nearest competition.

Thanks : Hindu Businessline

Red FM starts Quit Smoking Express movement

May 27, 2008

Red FM has joined hands with Pfizer, Salaam Bombay, and BMC to organize a Quit Smoking Express, which will spread awareness about the hazards of smoking.

The movement started on May 25, and it comprises of on air and on ground elements, which will culminate on May 31 in the cities of Mumbai, Delhi, Kolkata, Chennai, Bangalore and Hyderabad.

This road show will give a unique opportunity to the masses to show their concern for loved ones who might be addicted to smoking, through a signature board on the bus and special personalized messages delivered on-air by the RJs on-board the express.

Anuj Singh, Marketing head and Station head (Mumbai), Red FM said, “Red FM has always been at the forefront in bajaaoing issues that concern the society under our CSR umbrella, Bajaao for a Cause. Cigarette smoking is an ill that affects not only the smoker but also his family and friends. Through this initiative we are not only trying to get the masses to quit smoking but also helping them get over this addiction by giving them information though a toll free number and website provided by Pfizer.”

As part of the on-going social initiatives under the CSR umbrella, ‘Bajaao for a Cause,’ Red FM has helped spread awareness about tobacco abuse in the past by associating with organizations like Salaam Bombay Foundation that actively campaign against tobacco abuse.

Sun Shines Bright

November 17, 2007

The Sun TV Network was incorporated in December 1985 as a privately owned company under the leadership of Kalanithi Maran. From a single TV channel, it has grown to a range of 20 top-rated news and entertainment channels in four south Indian languages. Five are in Tamil, two Malayalam, six Kannada, and seven in Telugu.

The flagship channels are Sun TV (Tamil), Surya (Malayalam), Udaya (Kannada), and Gemini (Telugu). Though presence is largely based in the southern states, Sun plans to launch channels in other languages.

Recently, the company, through its subsidiary, South Asia FM, entered a strategic alliance with Red FM to expand its radio business in the north, west and east. Through its subsidiary Kal Radio, it launched radio stations in Tirupati, Madurai, Bangalore, Hyderabad, Tutikorin. It has 44 radio licenses to set up radio channels, indicating robust expansion plans. It plans to cover all of India and much of the South Asian subcontinent.

The Sun TV Network enjoys strong brand recognition, which it has achieved largely through a focus on local-language programming that appeals to regional viewer preferences. It operates leading Tamil radio stations under the name Suryan FM. It is the first to make profits in the radio business. Radio accounts for around 25% of gross sales.

The company launched a children’s channel, Chutti, in Tamil, which has outdone even mainstream channels and has been steadily increasing market share. The company leads in all genres in Tamil: mainstream (Sun TV), movies (K TV), music (Sun Music), and news (Sun News).

The entertainment and media industry has been faring spectacularly of late, and the going looks good for Sun TV. Chennai tops the list of average television viewers all over the country. Chennai viewers watch TV for an average of 19 hours a week, compared with Delhi (15 hours), Mumbai (15.7 hours) and Kolkata (16.1 hours), according to a Television Audience Measurement survey. Roughly 90% of Chennai viewers watch only regional channels. Sun TV had the highest audience share (71.2%) in the past year, compared to its closest rivals in the region, Vijay TV and Kalaignar TV, who had just 5%.

Sun TV Network’s main threat is the feud between the Maran family and Tamil Nadu chief minister M Karunanidhi, whose party, the DMK, recently launched Kalaignar TV. It remains to be seen how Sun TV will fare without the patronage of the DMK, which it enjoyed for years.

However, many media analysts feel it won’t be easy for a newcomer to upstage Sun TV. Sun’s main promoter, chairman and managing director Kalanithi Maran, is the largest shareholder, with a 79.97% stake. The company has won many awards for programming.

Maran has also won awards for entrepreneurship. The company has been successsful in fending off competition, and maintaining viewership. The alliance with Red FM, drawn up last quarter, will enable the company to boost its presence in the fast-growing radio market.

Sun TV has the second largest market cap in the entertainment industry, and its high earning per share shows that it is giving better returns than its rivals. The market cap, and Sun’s second highest price-toearning ratio, indicate huge demand for the stock, which is fairly priced. Even national channels cannot match it for earnings or market capitalisation. Sun TV Network, despite being a regional channel, shows great growth potential.

Sun TV Network has posted good results in the second quarter of the financial year 2008. The standalone revenue of the company for the quarter is Rs 208.76 crore, EBITDA is Rs 154.14 crore, and net profit is Rs 80.16 crore. The quarter saw increased competition in the markets.

However, Sun TV Network continued to dominate the television business in south India, with a market share of 60% in Tamil Nadu, 32% in Andhra Pradesh, and 29% in Karnataka. The total income for the second quarter increased to Rs 217.25 crore, up 119% from Rs.99.04 crore in the cooresponding quarter last year. Profit after tax jumped to Rs.93.07 crore, up 120% from Rs 42.23 crore for the corresponding quarter last year. The return on equity (ROE) has been around 47.56% in FY 07, an increase of 6% over 41.54% in FY 06.

The profitability of the company can be seen from the following comparative study of ratios from FY06 to FY07: retained earnings increased by 74.08%, operating income/total asset rose from 0.590% to 0.693%, showing an increase in profitability over the total assets employed. The net worth of the company has increased by 297.57% from Rs 299.15 crore (FY06) to Rs 1,189.32 crore (FY07). Similarly, reserves increased by 372.46% from Rs 237.15 crore (FY06) to Rs 1,120.43 crore (FY07).

Besides a huge market share in the southern part of the country, Sun TV Network has long-term plans to expand nationwide. It has started off with radio operations, which are doing well, and is likely to expand its TV business to the other parts of the country. The company has a sound growth record and excellent management. It is a good investment option for investors with a long-term horizon and moderate risk appetite.