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 Alf Alf has become the first new licensee in Saudi Arabia’s current FM radio auction, shelling out SAR75 million ($20 million) for the privilege of broadcasting, according to Arab News.
Saudi Arabia has put five FM licences up for grabs, and the race to the remaining four is now just a question of cash, according to Abdul Aziz Khoja, minister for culture and information – those that bid the highest, will get the stations.
The winning bidders, including Alf Alf (which, presumably, will not be broadcasting Arabic audio versions of classic alien-themed sitcom Alf) will have certain requirements to cover specific areas, although Arab News makes this less than clear, saying only the new station “has to cover 30 areas and 15 of them are mandatory”.
Er... right. We imagine it might mean 15 specific areas – major cities, for example – and 15 other areas on top of that.
And judging by a new report from the Arab Advisors Group, it’s a good time to get into the FM radio business, with ad rates for local stations rising in recent years, even in last year’s rather dismal economic climate.
The 2009 average rate was $125, up from $112 in 2008 – an increase, but possibly not hugely ahead of inflation rates.
But the really, really good news for Saudi’s new licensees is that the stations kicking butt in the ad revenue stakes are KSA’s current FM broadcasters – the newest of which is now Alf Alf.
The AAG report – available for the low, low price of $950 – also contains the staggering revelation that peak times for ad rates are when folks are driving in their cars, and therefore listening to the radio. No, really?
In other Saudi news, the Arab News report also slips in the nugget that the country’s culture ministry is now enforcing satellite TV licensing, saying the ministry had just licensed one station.
“Two days ago we licensed a satellite channel station. From now on, no Saudi channel can appear without the license of the Ministry of Culture and Information,” said Khoja, quoted in the paper.
Saudi Arabia has been promising/threatening stronger regulation of its media, including online publications (good luck with that one). However, the practical upshot may simply be to force unlicensed broadcasters out of the country.
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