MUMBAI: Shares of FM radio companies zoomed following the Copyright Board's directive of a revenue share model to end the row over music royalty.
Entertainment Network India Ltd (ENIL), which operates the leading FM radio brand Radio Mirchi, rose 9.31 per cent on Thursday to close at Rs 260.10 on the BSE.
Reliance Broadcast Network, which operates its radio business under the Big FM brand, hit the upper circuit with a 4.97 per cent increase. The scrip closed at Rs 93.95.
Music companies, however, were at the receiving end as the new revenue share model would shave off a substantial chunk of their revenues. Shares of Saregama India fell 3.16 per cent to close at Rs 142.50.Tips Industries, on the other hand, fell 1.44 per cent to close at Rs 44.4 on the BSE.
The Copyright Board has directed FM radio companies to share two per cent of their net advertising revenues with the music companies as royalty. This will come as a major relief to the radio industry
as they were earlier paying a fixed fee on a per hour model.