Private radio stations: Business model warning
15 years already! Since 2006, when the very first licenses were granted, private radio stations have become part and parcel of Moroccans’ daily lives. Over the years, the airwaves have helped people speak more freely and forge strong links, via the Internet, not only in Morocco but also with a large and diverse diaspora.
According to the High Authority for Audiovisual Communication (HACA), «by the end of 2021, the national private radio offering is provided by 13 operators broadcasting 20 FM radio services, including 7 radio stations with national coverage, 4 radio stations with multi-regional coverage, 2 networks of 8 regional stations, 1 multi-local radio station in addition to a bouquet of 11 radio stations broadcast via the Internet».
Between 2007 and 2021, HACA has assigned 491 frequencies for the broadcasting of private radio services. According to the High Authority for Audiovisual Communication, «Private radio stations have managed to build a link of great proximity and an inclusive relationship with citizens by allowing for the expression of all social, linguistic, territorial, heritage, and cultural diversities».
This is evidenced by the strong mobilization of the radio waves during the national campaign against the spread of Covid-19 or the monitoring and national coverage of the general elections of September 08, 2021… So many tangible examples that inform people on the capacities of mobilization, social inclusion, and promotion of pluralism of opinion, including in remote areas of the country.
However, despite all these multiple and concrete achievements, the development of the private radio offering remains constrained by several factors. Among these factors, difficulties related to the business model or the major constraints induced by the economic crisis coupled with the pandemic (Covid-19) with the collapse of advertising revenues… This has accelerated many weaknesses in the entire ecosystem of private radio stations. In other words, the model will have to be reinvented.
Today, the business model of classical radios, which is mainly based on advertising funding, has reached a dead end. It is subject to structural problems. «The model is showing its limits in an advertising market coveted by the GAFAM. The model must therefore urgently adapt to the changing media consumption modes or to the strong competition of digital formats», say HACA’s managing directors. From now on, new development levers are needed, experts agree. “The economic emergency that the sector is experiencing at this time calls for a professional upgrade or the establishment – by the government – of a vision in the short, medium, and long term to support the digital transformation of companies and of the sector and the upgrade of the business model», recommends the regulatory body.
For the moment, the situation is very critical and complex for this sector.
But beware, the solution does not lie only in the financing! According to the regulator, “the development of the private radio sector in Morocco is not dependent only on financial and economic levers to be implemented or reformed… The solution also lies in the consolidation of trust and professional ethics with the promotion of quality journalism to strengthen the link with society and with citizens.
Amine RBOUB
