Cost of radio in Malawi

By Victor Kaonga

According to the Malawi Communications Regulatory Authority (Macra), there were over 70 licensed broadcasters in Malawi by end of 2014. Yes, a good number are yet to be on air! Some people have wondered whether Malawi really needs more radio and television stations.

While some see radio as a lucrative business, others see it as an opportunity to reach Malawi with their agenda. Regardless of the categorisation of the radio station (public, commercial, religious, community, etc.) each needs capital and operational investment in terms of studio, office space, transmitting equipment, production, delivery, human resource, audience management and, marketing, among others. These areas call for business approaches.

Most stations earn their revenue through advertising, sale of airtime, donations and fundraising initiatives. Advertising brings direct cash to radio stations and depending on the nature of the radio station, it may be the single most important source of revenue.

The corporate world and government, small and big institutions are among the usual clients for many radio stations in advertising. However not all radio stations get advertising from government because most of such goes to the public broadcaster MBC, a development that is often contested by private broadcasters. In many developed countries, public broadcasters do not take adverts because they are expected to run fully on tax-payers money.

Radio stations also run programmes fully paid for by an interested client. This allows the client to generate own content and promote for instance behavioural change. Radio advocacy and religious programmes often take this approach. As they run for a certain period of the year, such programmes allow the station earn a regular income. And the more of such programmes, the better for the station.

Sometimes radio stations receive donations from its well-wishers and friends. Listener donations often demonstrate the impact of the radio has on the individual. Some listeners thank the stations for the change brought in their lives through programmes. While playing a significant role, management cannot bank on this source of income as it is not certain and regular.

A number of stations often start with donated equipment, services and space.

Radio stations also raise some income through fundraising initiatives of various natures. This may be through sale of the station’s merchandise, services and property.

Its work force deserves a wage just like some of its content contributors. The wage bill may be the biggest expense area. These employees also pay taxes.

Production of news and programmes is very costly.

Macra expects the broadcaster not only to pay for the licence and the frequencies annually but also to renew its broadcast licence every five or seven years. These monies are expected from the broadcaster regardless of the moneis they make.

Most stations rent space from Malawi Telecommunications Limited (MTL) on transmitting sites. For stations with over five transmitters, such monthly bills are no less than half a million kwacha these days. Unfortunately it is only MTL that has telecom infrastructure to support most broadcasting, therefore, broadcasters do not have much choice but pay exorbitant rates.

To be on air every second of the day, it also calls for vigilance and proper preventive transmitter maintenance. Administrative support and audience management have own costs.

No radio operates alone, hence it subscribes to professional organisations and umbrella institutions at a fee. They also pay royalties to artists through the Copyright Society of Malawi (Cosoma).

Every station strives to be popular. In an ever changing media environment, no station can boast of monopoly in the business. Listeners now can tune off any station that does not meet their needs. The station has to constantly ensure that it is popular, visible and present with the people. Investment into radio marketing is also costly demanding a well-resourced strategy and team.

Most broadcasters in Malawi are not-for-profit but nevertheless have to find resources to sustain their work. For instance, it costs TWR a minimum of K10 000 an hour to operate. For it to remain in the business of reaching people with the word of God, it has to find the money despite the fact that the gospel is free. This explains why radio is a costly business. **The author is national director of Trans World Radio (TWR).