NEW DELHI: The Association of Radio Operators of India (AROI) has welcomed Radio Mirchi's offer of $1 million of free commercial time (FCT) to combat the menace of piracy in the music industry by creating awareness among listeners.
Reacting to the offer made by Radio Mirchi, AROI general secretary Uday Chawla said: "It is a great gesture on the part of the radio industry, that too coming from one of the major channels in the radio business."Chawla further adds: "Our relationship with the music industry is a symbiotic one and I hope that this gesture builds a relationship of trust and friendship between us."
Chawla feels that radio channels have been unfairly treated thus far by the music companies.
"We are like the goose that lays golden eggs. But if you think you'll find tonnes of gold if you cut us at one go, I'm afraid you're mistaken," Chawla adds.
Meanwhile, sticking to its pledge of fighting piracy, Radio Mirchi has again asked the music companies to come forward and provide content for the FCT that it has offered.
Mirchi had said that the FCT could be utilised by the music companies to launch a massive awareness campaign against piracy, for which advertisements need to be generated by the companies, which they have not done till now.
"We are open to the companies' suggestions in our fight against piracy. We have made our offer and it is now up to them to respond," Radio Mirchi CEO Prashant Panday told Indiantelevision.com.
Panday says the FCT offer - which had been a call for action made at the Ficci Frames meet earlier last month in Mumbai - is spaced over a period of 12 months and is still available to the companies unconditionally.
"We haven't specified a deadline for the music industry to avail of this offer. But in the end if they do not respond, we will carry out this fight alone," Panday adds.
The AROI has been dealing with this fractious relationship with the music industry on the issue of double royalty, and looks upon the Mirchi offer as a tool for clearing the deck for negotiations.
Accordig to Chawla, radio stations pay two types of royalty - one as copyright and the other for 'performing fees' - and that eats into, on an average, 16 to 20 per cent of their revenues in larger cities.
"Although for stations transmitting in A+ category cities the percentage would be around nine, and may not be that big an issue for operators there, the stations in smaller cities are having a difficult time. They have to shell out up to 87 per cent of their revenues for royalty," Chawla continued.
Asked why the two interdependent industries haven't come to a consensus on this issue so far, Chawla says, "The music industry is split within itself, and that could perhaps be a reason why they haven't been able to do much about piracy."
He explained that the music industry has its own organisation Phonographic Performance Ltd (PPL). But T-Series, the top player in the industry, is not a part of the body.
"I feel the music industry has been myopic, for they see that almost 90 per cent of the content radio stations air is music, excluding advertisement that is, but this may not last forever," he held.
The radio industry is expecting news and current affairs to be allowed on private FM stations once the Third Phase of FM licensing comes through.
"When that is implemented, and if the transmission guidelines are eased, I wouldn't be too surprised if some of the stations don't play music at all," Chawla conjectured, hinting that would give them a more level playing field.
The India Today Group, in which Chawla is a senior official, owns and operates Radio Today's Meow station that hardly runs music.