Devastated by covid-19 lockdown, radio industry sends out SOS

NEW DELHI: Under tremendous pressure due to a fall in advertising spends across sectors because of subdued business activity amid the covid-19 pandemic, the FM radio industry is staring at a major financial crisis.

Industry revenues fell over 80% in April and are estimated to decline another 90% in May. With no revenues from commercial segments and government advertising, the radio industry, in the first two months of FY21, has witnessed an estimated loss of over ₹200 crore – a figure estimated to top ₹600 crore by September.

The unprecedented crisis also stems from the huge unpaid dues of the MSMEs (micro, small and medium enterprises), real estate and retail sectors that also have been hit hard by the pandemic-induced lockdown.

In addition to this, government dues to the industry have been pending for a year now.