Blue Ocean Strategy for FM Channels

The launch of FM channels has put radio entertainment back on the map. So much so that phone makers were forced to bundle FM radio with the instrument and the move has helped broaden the reach and appeal of FM. In a city like Mumbai, where the average commute time is more than an hour (one way), FM has become the staple form of entertainment for commuters.

It is, but natural, that FM players are vying to attract the most number of listeners during rush hours so they can jack up advertising rates. Which is why they have their marquee RJs hosting shows, and extensive brand building to raise their profile. But such differentiation ceases to matter when everyone follows the same strategy. Trying to get better RJs or changing the tone of these shows can hardly be termed innovation. This is a typical example of trying to compete with what’s called “Red Ocean Strategy”.

When markets get competitive, one should step back and assess the situation afresh. What pulls listeners to an FM station? In my mind, the top three factors are: good music, more music/fewer ads, and interesting/funny RJs. The first and third are pretty much standard so the way to break out is the second option. (Am not saying all RJs are good, just that they are equally bad.)

The solution is simple. Eliminate RJs. That will allow more time for ads because time that was earlier split three-ways (music, RJ and ads) is now split two-ways. You may choose to slip in an occasional interview to keep listeners curious. Otherwise, listening to one star or the other everyday has become a boring thing. This is “Blue Ocean Strategy”. The only potential hiccup here is if FMs have to pay royalties based on the number of times a song is played, in which case the expense will shoot up. Can that be offset by the savings in RJs’ pay is something that needs to be worked out.

I must confess this is not my original thought. Jack FM in Los Angeles plays rock 24x7, has no RJs, doesn’t take any requests, but has some self-deprecating and condescending recorded messages that play between songs. (“Broadcasting from a dumpy little building in beautiful downtown Culver City”), and is a popular station out there.