Sunday 18 September 2016

Possibilities of Capital FM rebranding after acquired by Astro



On 9th September 2016, Astro acquired loss making Capital FM and Red FM with RM42 Billions.

Capital FM Sdn Bhd holds Content Application Service Provider (CASP) license which can be allowed to broadcast Red FM and Capital FM.

Astro will rebrand these two radio stations to target new audience.

Previously I had speculated and predicted Red FM will be rebranded to a Tamil retro radio station, known as Osai FM (which currently only airing on Astro CH866), because there also may demand of Tamil listeners who want the classic music station like Malay station Sinar FM and Chinese station Melody FM.

Now, we will talk about the future of Capital FM.

Astro currently broadcasts nine FM radio stations, mainly Era, My, Sinar, THR Raaga, THR Gegar, Melody, Hitz, Mix, and Lite. In addition, Astro also owns Classic Rock, Bayu, Kenyalang, Opus, Jazz, Gold, India Beat and Osai.

Rumors state that Capital FM will be rebranded to a talk radio station like Astro Talk Radio FM 101.8MHz in 1997-98.

Let's analyze the Astro satellite stations which may be possible broadcasted on Capital FM frequency.

1. Opus
- In my opinion, I don't think Astro will rebrand Capital FM to Opus FM as less listeners will listen to classic opera music. Actually classic opera music station has no market in Malaysia, perhaps not all listeners love to listen to classic opera music.

2. Jazz
- Same answer with Opus. Jazz FM plays jazz music, less Malaysian people listen to jazz music on FM station. In addition, its sister station Lite FM also plays jazz music, alongside with easy listening music.

3. India Beat
- India Beat actually plays Northern Indian music. Malaysia Indians speaking language is Tamil, and some of them are speaking in Malayalam rather than Hindi. India Beat plays Hindi, Punjabi and Bengali music. Tamil language is origin from South India. In my opinion, I don't think Astro will rebrand Capital FM to India Beat perhaps Northern India music station market in Malaysia is very small, it is considered as minority market.

4. Bayu and Kenlayang
- Both are East Malaysia music stations. Never think Astro will launch in Klang Valley, instead they can launch in Sabah and Sarawak.

5. Osai
- I had mentioned previously regarding rebranding of Red FM. Briefly say that Osai FM is a Malaysia Tamil retro radio station which plays Tamil music from the 1970s till 1990s.

6. Classic Rock
- A rock station by Astro. In 1997, Classic Rock was aired on 103.3MHz (Klang Valley), then slots are taken over by Era FM due to high demand of Malay listeners. Sounds like BFM 89.9, because BFM 89.9 plays classic rock music, together with business and headlines talk. To me, there is also a chance of launching Classic Rock on Capital FM frequency, but they also may have possibility to take over Mix FM slot if Mix FM face loss making due to low listenership.

7. Gold (formerly Golden Oldies and Nostalgia)
- Gold FM plays the English songs from the 1950s till 1970s like Elvis Presley, Diana Ross, The Beatles, Bee Gees, James Brown etc. Light & Easy played English oldies before it renamed to Lite FM in 2006. Lite FM dropped the 1960s and 1970s songs as they want to concentrate on younger listeners, so Lite FM plays the songs beginning from the 1980s. After Lite FM is no longer playing 1960s and 1970s, but those 1960s and 1970s are played on Astro satellite only station Gold FM. In my opinion, the rebranding of Capital FM to Gold also could be the possible as Malaysia currently has no more oldies station which play the songs from 1960s and 1970s.

Other than these eight radio stations, I don't think Astro will return its defunct station XFM (Xfresh) as this station had been making loss heavily after 2010. In term of marketing, most of Malay listeners are listening to Era, Sinar, Gegar, Hot FM, Suria FM, Best 104 and Kool FM. XFM target audience is Malay teenagers and it plays Malaysia indie music like Pop Shuvit, Meet Uncle Hussein, Hujan, Poetic Ammo, Point Blanc.

According all the analysis made on six stations, India Beat, Jazz and Opus won't be aired on FM terrestrial radio by taking over Capital FM. Meanwhile Classic Rock and Gold, hmmm...Gold may result higher possibility than Classic Rock, but mostly Astro may return broadcasting of their long time defunct Talk Radio back to FM station.

Talk about the history of Astro early radio station, Talk Radio. It was launched in 1997, together with Hitz, Mix, Lite and Classic Rock, but it was ceased broadcasting in 1998 after taken over by My FM.

==Talk Radio==
88.9MHz: Klang Valley (Gn Ulu Kali)
107.6MHz: Penang (Bkt Penara)
103.3MHz: Johor Bahru (Metropolis Tower)
xx.xMHz: Ipoh (Gn Kledang)
xxx.xMHz: Seremban (Bkt Gan)
xx.xMHz: Malacca and Johor (Gn Ledang)

If Astro returns Talk Radio, in my opinion, I don't think Astro will expand the coverage to Terengganu, Kelantan, Kedah, Perlis/Langkawi as there have no commercial value. English radio market is not so big in these states.

In terms of commercial value, Gold and Classic Rock may result higher.

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