Tuesday, August 21, 2007

Non-headline of the day

"Sale of radio sets stagnates" in FE.

Interestingly, people still listen to radio in India, as they do in many other parts of the world. Indeed, the numbers are expected to grow. FM Radio is exploding with more stations slated to open (as many as 175). So reducing demand of radio is clearly not the issue. Worldspace is not doing too badly, though their radio sets are different.

Most cars have stereos and radios, many mobile phones have radio options inbuilt into them, as do many mp3 players. Indeed on almost any footpath you will find 50 rupee radios - the kind that fit into a pocket, run on a single AAA or AA battery. So, clearly, it is not the technology nor availability that is the issue.

So, what do these chaps make if they are not making the cheap 50 rupee radios or the higher end mp3 combo?

Perhaps they are making stand alone radio sets which look horrendous, cost a bomb and are barely portable. And they managed to sell 7 million of them? How? Why did anybody buy them? And these dinosaurs from Indias socialist age crib that the culprit is the 30% tax that is levied on them. Talk about barking up the wrong tree.

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