Part 1: What is Sound?

Sound is transmitted mechanically through compression and expansion of air. Speakers work by moving back and forth, manipulating the air around the speaker. Microphones record sound by means of a diaphragm whose motions are converted into electric currents, with variations in current corresponding to higher and lower compressions. The ear works the same way, with the ear drum producing changes in current that go to the brain. The sounds we hear, even a steady pitch, are rapidly changing areas of pressure. A steady pressure would not produce any sound. We express sound graphically as a wave form, with the frequency corresponding to the compression and expansion of air and the amplitude representing the volume. A pure wave (a sine wave) produces a very flat sound. A440-A sine wave with frequency equal to 440 Hz 1 (Sound Wave Pictured Below)

The x direction (horizontal) represents a time change (the area pictured is less than 1/100th of a second) and the y direction is amplitude. In this sound wave, areas above the blue line are higher compression than standard air pressure, and areas below the blue line are areas of expansion, with pressure below the standard air pressure (the gray lines are reference point for volume). In a standard volume sound wave, these changes are minutiae, enough to be noticed as sound but not enough to sense a change in pressure. A440-A Higher Volume Sound Wave with the same frequency (Notice the Higher Amplitude of the Sound Wave)

The waves above have a flat sound, unlike a piano note or a guitar string. This is because instruments produce overtones, or sounds that have a harmonic relationship to the note being played. Overtones are at whole number intervals from the original sound wave. For example, an A440 could have as its overtones an A880 (One octave above-twice the frequency), an E1320 (A fifth above-3 times the original) (Not quite an E, but very close), an A1760 (two octaves above-4 times the original frequency), etc. These overtones have lower volumes than the original note; therefore, a note is classified by its loudest overtone, which happens to be the root note. Waves can be added together, with the total amplitude at each moment in time being added together. For example, an A440 and an A880 at equal volume would produce an irregular wave with a repeating interval. An A440 Wave + An A880 Wave = A complex wave

Overtones can be added in this way, so that a note on a guitar would appear an an even more complex wave. A sound wave from a piece of music would be even more complex. An A440 On Guitar

An Orchestra Playing2 (There are two tracks (stereo-left and right) separated by a black line)

Part 2: How Sound is Stored Digitally

Part 2: How Computers Store/Play Sound3

Computers store sound digitally, in 1s and 0s, rather than the actual sound. To show how computers store sound, we will use the graphical representation of sound. A sound file has 2 primary properties: its frequency (in Hz), and its resolution (in bits). The frequency is not related to the frequency of a note, but refers to the number of times a computer will check the sound level. The most common frequencies are 22,050 Hz (1 Hz=1 Time/Second), 32,000, and 44,100 (CD Sampling Rate). At each check, the sound inputs a volume in the form of a whole number (1,2,3,...). Because computers store numbers in binary form (1's and 0's), the bit number refers to the number of digits used. For example, a 2-bit resolution would have four levels: 00 (0), 01 (1), 10 (2), and 11 (3). A 4-bit resolution has 16 levels, etc. Example of Sampling Rate/ Converting to Binary (They use Voltage instead of volume-the two are proportional)4

The number of levels for an X-bit resolution is equal to 2 X, so a higher bitrate equals a higher quality of sound. The most standard form for sound is 16-bit (65,536 levels), with older files having 8-bit resolution (256 levels). Frequency and bitrate determine the size of the file-each frequency mark contains the number of bits (8 bits is a byte). 3 seconds of a 44,100 Hz, 16-bit file is 16(bits per reading)x44100(readings per second)x3(seconds)=2,116,800 bits (/8 bits per byte)=264,600 bytes (264 kilobytes). To play back the sound, the computer plays a tone at the volume it has from the data file. because theses tones go so fast (44,100 of them a second), we cannot hear themwe only hear the sound that was recorded into the computer. To represent this graphically, we could plot the volume along a y-axis and the time on the x-axis. By making straight lines between the dots, we see the basic "wave" the computer plays. Recording Wave, Sample Taken by Computer and Resulting Wave 4

Consequences of Digital Recording/Playback

While digital music allows sound to be manipulated and copied very quickly (as opposed to analog recordings, where a track had to be played in its entirety in real time to be copied or transferred with an effect applied), the means of converting to digital open the sound up to quality problems. For example, if the sampling rate is the same as the frequency of a wave, all that would be sampled is a constant level, which would produce no sound. While most sound files are sampled above the range of human hearing (28 kHz, with the max human range being about 20 kHz), and most

problems are more complex due to complex sound waves, the problems loss of resolution can cause are still important, and appear more with compressed sound. Part 3 - Sound Compression and Formats

Part 3 - Sound Compression and Formats

Storing sound uncompressed (all the 1's and 0's are intact from the original recording of the song) requires lots of space, with songs taking about 10 MB per minute. This makes most songs 30-70 MB in size, too unwieldy to use on the internet or to store on a re-writeable medium (floppy disc, zip disc). Therefore, most digital sound is compressed in some way to make it more manageable.

How Sound is Compressed

Different sound formats use different compression methods. While some formats use creative compression methods (such as storing only the volume difference between samples), most compression methods use 2 processes to decrease a file's size: clipping and re-sampling. Clipping is the process of removing uncritical parts of a sound file. This could be the upper and lower volume bounds, or the lower and higher volumes of a sound file. Because sound is primarily a frequency, clipping the extremes of a song don't change the file drastically. Not too much is clipped; a 16-bit file with 65,356 sound levels would lose maybe 1% or 2% of its levels. Another way to clip is to remove unhearable frequencies. The human ear can only hear from 20-25000 Hz, and an uncompressed digital sound file will have a sampling rate of 44,100 Hz. The compressing program uses an algorithm to eliminate the lower frequencies (which we would perceive as vibration by actually "feeling" a rumble) and higher frequencies (which we would not hear). Frequency clipping can also be a result of re-sampling (see below), but is still used even when a file is not re-sampled. Clipping has very little effect on the general form of the song, but has a great effect on the "richness" of the song. Although we cannot hear the parts of a song that are clipped, what is clipped is often integral to the sound of the song. A song with drastic volume clipping (anything more than about 3 percent of the level) will sound distorted, and any clipping makes a clip sound flat (see the examples below). Re-sampling is the process of sampling a digital file again. A 44100 Hz file may be re-sampled at 22,050Hz, halving the file size. The compressing program would record every other (or every third or fourth, depending on the original frequency and re-sampling frequency) volume level. The disadvantages to re-sampling are a little

more obvious-the higher frequencies are clipped as a result of not being able to distinguish between the changing sound levels (this clipping tends to have a harsher sound than standard clipping). Nonetheless, re-sampling is the most effective way to decrease a file's size.

Format Description/Samples Wav, Aiff

.wav and .aiff files are the standard uncompressed formats for Windows and Macintosh, respectively. They store sound in the way discussed in the last section, without any clipping and at a high sampling rate (generally 44,100, 16-bit format). Because they are similar, only the .wav formats will be given samples. a note on all samples files: To compare the effects of compression, all processed sound files will be presented in three ways: as a sine wave (the standard a440), a guitar playing (a basic instrument with a non-regular wave) and a group playing 5 (a very complex sound wave). Wav File-44,100 Hz, 16-Bit files. A440 (3 sec, mono, 258 KB) 3.37 MB) Guitar (28s, mono, 2.35 MB) Band (Stereo, 20s,

MP3, WMA
mp3 has become the most highly used compression format recently, thanks to its ability to compress files to very manageable sizes with very little loss in quality. MP3 compression involves both clipping and re-sampling. The quality of .mp3 files is not indicated by frequency and bit-rate, but is replaced with a kbps (kilobit per second) marking, which represents the space used per second in that file (the wavs above have an equivalent rating of 1,411 kbps). The most popular sampling rate is 128 kbps, which reduces the sound to about 1 MB per minute with little loss in quality. It is very difficult to tell the difference between the .wav file and .mp3 files at higher kbps ratings-listen to the cymbal crash at the beginning of the band file and how it goes from being a quick crash to a long "wash-out". Also pay attention to the change in overall tone of the song. MP3 files cannot be recorded in mono format, so all the clips here are stereo. WMA is windows proprietary compressed sound format, and uses an almost identical compression scheme as MP3 files. MP3 file - 256 kbps, 44 KHz sampling rate

A440 (94 KB)

Guitar (876 KB)

Band (627 KB)

192 kbps, 44 KHz sampling rate A440 (70.5 KB) 128 kbps, 44 KHz A440 (47 KB) 96 kbps, 44 KHz A440 (35.3 KB) 64 kbps, 22 KHz A440 (23.5 KB) 32 kbps, 22 KHz A440 (11.8 KB) 16 kbps, 16 KHz A440 (5.96 KB) Guitar (54.8 KB) Band (39.2 KB) Guitar (109 KB) Band (78.4 KB) Guitar (219 KB) Band (156 KB) Guitar (328 KB) Band (235 KB) Guitar (438 KB) Band (314 KB) Guitar (657 KB) Band (470 KB)

RealMedia Files
RealMedia has become one of the standard sound formats because of its ability to be streamed, or played without being fully downloaded (WMA files can also be streamed, but they still use the same compression technique). Because of the difficulty of getting a streaming server and the loss of reliability of a streaming file (streaming files often stop for a second and start again due to the lack of bandwidth to keep it going), these files must be downloaded and then played. RealAudio files use a standard compression, but are different from MP3 files in that they try to optimize quality as they compress the sound, rather than a one-size fits all approach used by MP3s. Because RealAudio is meant to be streamed, files are classified by their ideal bandwidth to be played on, such as a 56K modem or a DSL line (the files below are listed in descending order of quality) RealAudio File - Corporate LAN

A440 (30.4 KB)

Guitar (237 KB)

Band (248 KB)

Dual ISDN Line (same compression as Corporate LAN for mono files) Band (163 KB) Single ISDN A440 (21.7) 56K Modem A440 (19 KB) 28K Modem A400 (11.6 KB) Guitar (76.4 KB) Band (53 KB) Guitar (118 KB) Band (87.6 KB) Guitar (164 KB) Band (113 KB)

Other Formats (Quicktime, .au, Liquid Audio, etc.)

The samples presented here are only samples of the sound files available. There are many other types of sound files, each with different uses. Quicktime is the proprietary streaming format for Macintosh, but was not included because it the compressor was not readily available. .au is an older, 8-bit files type used when .wav and .aiff were too big to be readily used in older computers, and is now and obsolete file type. Liquid Audio is also becoming a standard as a secure, streaming format, but the compressor is not readily available. It is the system used here on campus for the Music Library course reserve sound materials (Sunsite2.berkeley.edu/Music), available only on library workstations. There are many other sound file types, many created for a specific program. The file types presented here are the standards for listening to sound as a whole, as opposed to working with it or listening to it in the background of game or other multimedia file.
FM : FM broadcasting is a broadcast technology invented by Edwin Howard Armstrong that uses frequency modulation (FM) to provide high-fidelity sound over broadcast radio. FM Frequency Modulation : Frequency modulation (FM) is a form of modulation which represents information as variations in the instantaneous frequency of a carrier wave. VHF (very high frequency) band which extends from 30 MHz to 300 MHz. Throughout the world, the broadcast band is 87.5 to 108.0 MHz, or some portion thereof. FM is commonly used at VHF radio frequencies for high-fidelity broadcasts of music and speech Frequency Modulation OBJECTIVE : To highlight the strategies for the success of FM radio channels in India. OBJECTIVE

Brief History of Radio Broadcasting in India : 1977 First FM service in Madras. 1993 AIR sells time slots for private FM radio broadcasting in five cities. 1999 Privatization of FM . In 1999, the Indian Government decided to allow private FM stations in India through a bidding process where bids were invited for 32 cities. Brief History of Radio Broadcasting in India Continued : When radio was first introduced in the 1930s many predicted the end of records. Radio was a free medium for the public to hear music for which they would normally pay. While some companies saw radio as a new avenue for promotion, other feared it would cut in to profits from record sales and live performances.. Continued FM Radio : Radio broadcasting uses either of two types of signals - AM or FM. Unlike AM (traditional radio) signals, FM signals do not need expensive transmission towers. FM Radio Source of data : Primary data (From the listeners of FM) Secondary data ( Through Internet ) sample size - 30 Source of data Present FM radio channels : Present FM radio channels Mast Maja Madi Dive In The Colour of Music Hit Mele Hit Mele Hit Mele Hit It Is All About The Music Suno Sunao, Life Banao Its hot STRENGTHS : Interactivity with listeners To attract the advertiser by keeping air time rate reasonable w.r.t competitors Awards and film tie-ups Sponsoring Events Educational Programs STRENGTHS ANALYSIS : ANALYSIS How long do you listen to FM in a day? : How long do you listen to FM in a day? Place of listening? : Place of listening? Which channel do you prefer in FM? : Which channel do you prefer in FM? Why do you listen FM? : Why do you listen FM? Current advertisers on FM : Current advertisers on FM TOP CATEGORIES FMCG, durables and media houses are the top three categories as shown below: RECOMMENDATIONS : Expand their network in towns & villages also There need to be some sessions exclusively for current affairs and news. Need to be improved in terms of sound clarity. Do not reveal the mobile numbers of listeners during live programmes. RECOMMENDATIONS LIMITATIONS : Sample size is 30 LIMITATIONS CONCLUSION : I would like to conclude that FM radio has taken the fancy of almost everyone, with music available 247, it is easy to get plug in your earphones and listen to the songs and the blabbering of the RJs. If you go anywhere in Bangalore you will see people listening to radio, not just people walking in streets, but those inside shops, buses and where ever you can imagine, this lead to success for FM . CONCLUSION 1. FM Radio Industry - India December 2009 2. Executive Summary Radio stations generated a revenue of INR X bn in 2008 ; expected to reach INR Y bn by 2012 Share of radio advertising was x% in 2008; expected to reach y% in 2012 Market Most stations use same level of genre of content with little or no differentiation There are over x radio stations beaming across over y cities in India LE Drivers: Challenges: P

Increasing radio listener base Royalty Opportunities in Phase III expansion Lack of content differentiation Drivers & Challenges AM Increasing advertising by small local brands Favourable demographics S Political advertising Introduction of new performance measurement tool Government regulations Bargaining tactics used by advertisers Emergence of Visual Radio Satellite Radio Community Radio Trends Internet Radio Sales Alliances Players going Niche All India Radio (AIR), covers x% of India's area and reaches y% of Indias population Company A leads the overall market with share in revenue terms in excess of x% Competition Company B leads in terms of highest number of stations Majority of players are backed by media houses with interests in media activities like TV or Print FM RADIO INDUSTRY INDIA.PPT 2

3. Privatization of Radio Market Overview Drivers & Challenges Trends Competition Key Developments FM RADIO INDUSTRY INDIA.PPT 3 4. Privatization of Radio in India was a lengthy process Time Line Radio Privatization Private broadcasters sold slots on AIRs FM channels for certain key cities, the service was later 19-- discontinued in 19-- 19-- PLE Privatization of FM - Phase I Policy Bids were invited for allotting licenses for a ten-year period 20-- 20-- SAM Phase I FM broadcast licensing, auction was conducted Licenses issued to private radio broadcasters In February 20-- TRAI was asked to give recommendations for Phase II licensing of FM radio 20-- In August 20--, TRAI presented its recommendations on the regulatory framework for private FM stations 20-- Announcement of Phase II Policy of privatization of FM 20-- Licenses for x cities were auctioned Source: Knowledge@Wharton Strong Signals: India's FM Radio Stations Brace for New Competition August 2009 ; Sector Focus: Resurging FM Radio ; afaqs Market Transformation: Radio October 2009; CII KPMG Report Indian Entertainment Industry: Focus 2010 ; ENIL Indian Radio Industry FM RADIO INDUSTRY INDIA.PPT 4

5. Radio Market has a good growth potential Market Overview Advertising Revenues and Share There are over x radio stations beaming across ~x Advertising Revenues cities in India INR bn % Share of Radio in Ad Pie % Radio programming during primetime consists of at 20 4 LE least x minutes of music, y minutes of Ads and z minutes of jockey talk 15 3 Radio advertising penetration in India is low as compared to other nations MP 10 2 A Demand for radio advertising is expected to increase as 5 1 S the players across industries feel the impact of recession 0 0 Radios national footprint is expected to rise with 2004 2005 2006 2007 2008 2009e 2010e 2011e 2012e phase III round of licensing Radio Advertising Share in Total Ad Spend Advertisers Profile on Radio % Media y Others 10 z x% u% 5 x w v% y% FMCG Telecom w% z% 0 Retail t% India China Singapore World Finance Durables Source: IBEF Radio Ga, Ga; ENIL Radio Mirchi; CII KPMG Report Indian Entertainment Industry: Focus 2010; Report on the Indian Private FM Radio Sector May 2008; Majmudar & Co; The Indian media and entertainment industry; Livemint Consolidation, greater reach and growth ahead" December 2008 FM RADIO INDUSTRY INDIA.PPT 5

6. Drivers & Challenges - Summary Drivers Challenges Increasing radio listener base Royalty Opportunities in Phase III expansion Lack of content differentiation Increasing advertising by small local Government regulations brands Favourable demographics Bargaining tactics used by advertisers Political advertising Introduction of new performance measurement tool FM RADIO INDUSTRY INDIA.PPT 6

7. Trends - Summary Emergence of Visual Radio Players going Niche Satellite Radio Trends Sales Alliances Community Radio Internet Radio FM RADIO INDUSTRY INDIA.PPT 7 8. Majority of players are backed by media houses with interests in other media activities like television or print Competition Overview Private players No. of Stations In terms of reach, All India Radio (AIR), covers x% of A a India's area and reaches y % of Indias population B b Company A leads the overall market with a share, in C c LE revenue terms, in excess of x% D d E e P Market comprises of small and large players F f Small players normally have two to four

stations G g SAM Large players are present nationally or in multiple regions Majority of players are backed by media houses with interests in other media activities like TV or Print Such players are in position of providing benefit of cross- advertising to advertisers H J K L I k l h i j Regulations at present do not permit consolidation of M m business, before five years of operations N n Large players are thus forging strategic sales tie-up with O o the regional or small players P p Metro cities are over crowded with FM stations Q q x% of all private FM stations are located in metros R r Metro cities have diverse set of people, hence attract S s maximum attention of advertisers T t U u Radio companies spend a lot of effort on branding V v Companies try to differentiate by building loyalty through W w RJ shows Source: Company Websites; FICCI-KPMG Media & Entertainment Industry Report; ENIL Radio Mirchi Annual Report 2008-09 ; The case of Diversification: Case Study analysis of the nature of competition in emerging markets October 2009 FM RADIO INDUSTRY INDIA.PPT 8

9. Major Players (2/7) Company FM Frequency No. of Stations Business Description Company A 92.7 45 It is a radio initiative from ABC Ltd It launched its first Station in September 20-- A network of x stations including an FM station in Singapore Major cities covered include Hyderabad, Mumbai, Delhi, Kolkata, Mangalore, Jalandhar, Ajmer, Bhopal and Surat Company B 94.3 4 Started its service on January 1, 20-- It is a private FM radio station for the state of Kerala, operated by ABC in Kerala Services in Cochin, Thiruvanathapuram, Kannur and Thrissur Company C 104 4 It broadcasts in Mumbai, Bangalore, Delhi and Kolkata It is operated by ABC Ltd Company D Various 26 It is an educational FM radio station in several cities of India Frequencies Operate as media cooperative with day-to-day programmes contributed by educational institutions, NGOs, government and semi-government organizations, UN agencies, Ministries Medium of broadcast is English, Hindi or regional language Note: This list is not exhaustive Source: Company Websites SAMPLE FM RADIO INDUSTRY INDIA.PPT 9

10. Thank you for the attention The FM Radio Industry - India report is a part of Research on Indias Media and Entertainment Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 8448 0449 Phone: +91 98364 71499 E-Mail: [email protected] E-Mail: [email protected] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on hot industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledgesoftware services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. FM RADIO INDUSTRY INDIA.PPT 10