In a significant development for India's FM radio sector, HT Media Ltd and its subsidiaries have approved the surrender of key FM radio licenses across major metro markets. According to regulatory filings to stock exchanges, the boards of HT Media, Next Radio Ltd, and HT Music and Entertainment Co Ltd have approved the surrender of licenses for several radio stations operating under the brands Radio Nasha, Radio One and Fever FM. The stations impacted include Radio Nasha 91.9 FM in Mumbai, Radio One 94.3 FM in Delhi, Mumbai and Bangalore and Fever 91.9 FM in Chennai. Operations are expected to cease from June 15, 2026. This decision follows similar exits by other major media entities, including TV Today Network and Big FM undergoing insolvency proceedings, with RED FM also surrendering Magic FM in Mumbai due to unviable operating economics.
The decision by HT Media follows similar exits by other major media entities, including TV Today Network and Big FM undergoing insolvency proceedings. As reported by industry sources, the FM radio sector has been severely impacted by regulatory challenges and operational economics. India's overall media and entertainment sector grew 9% to reach ₹2.78 trillion in 2025, while radio revenues declined by 7% to ₹23 billion - making it the only media industry to decline during this period. The sector has paid out as much as ₹999 crore in FY 25-26 alone, with GST at 18% costing the industry ₹150 crore annually in excess tax compared to other media sectors at 5%. This trend, say industry experts, is a consequence of regulatory inaction, not market failure, with the industry arguing that 40% city-level ownership caps continue to limit meaningful consolidation while the sector's share of India's advertising market has fallen sharply from over 3.4% in FY15 to only 1.1% in FY25.
The industry faces multiple structural issues that have contributed to the sector's decline. According to industry representatives, 40% of gross revenue is consumed by government fees including GST, annual license fees, tower/spectrum charges and one-time fee amortization. The sector has paid out as much as ₹4,155 crore as one-time auction entry fees alone, with some frequencies costing as much as ₹169 crore in Delhi - five times the actual migration/extension fee. The industry argues that 40% city-level ownership caps continue to limit meaningful consolidation, while the sector's share of India's advertising market has fallen sharply from over 3.4% in FY15 to only 1.1% in FY25. Industry executives point out that even after government removed the 15% national ownership cap in 2022, the 40% city-level cap remains, with no broadcaster able to own more than 40% of frequencies in a city.
The FM radio industry association AROI has outlined four critical reforms to address the sector's challenges. These include applying the 4% Adjusted Gross Revenue (AGR) model to Phase III license extensions post 2030, automatic extension of existing licenses for 25 years without fresh auctions, reducing GST on FM radio from 18% to 5% to bring parity with other media sectors, and making FM radio receiver activation mandatory on mobile phones. The industry also seeks to permit news and current affairs broadcasting, arguing that India is the only major democracy where news is barred on FM radio. As per industry experts, the next phase of licenses should be extended free of cost for existing operators, particularly after years of policy apathy and structural disruption caused by digital platforms. The industry has made it absolutely clear that a fresh auction is not viable given the structural shift in the advertising market, with the only solution being to apply the 4% AGR model to existing license extensions without triggering a fresh auction process.
The sector's decline is particularly concerning given radio's accessibility and reach across India's mass markets. According to industry sources, radio remains free and deeply connected to middle-class and mass-market audiences across Tier-2 and Tier-3 markets, continuing to reach commuters, drivers, shopkeepers, and millions of Indians daily in local languages. However, the industry faces competition from global streaming platforms and digital audio giants, with private FM industry revenues in FY25 standing at around ₹1,819 crore - still below FY20 levels of ₹1,903 crore. Industry experts emphasize that consolidation is no longer optional for radio survival, similar to what occurred in the telecom sector, but regulatory delays continue to cause severe financial uncertainty for potential mergers and acquisitions. The irony is striking, as India's audio consumption is booming with podcasts, streaming platforms, and connected cars growing rapidly, while domestic FM broadcasters remain trapped under outdated regulations framed for a completely different era.
