Radio stations rush to music concerts as competition rages

As the number of radio stations increase in Uganda, competition for advertisement revenues has stiffened and survival is becoming more difficult. Some have had to cut the number of staff, reduce salaries and phase out expensive programming. Others have come up with innovative initiatives such as music concerts, which attract some revenues and increase their listernership.

Chameleon performing at CBS Ekitobeero

With increased investments in telecommunication companies manufacturing industries, educational institutions and financial institutions among others, the fight for radio advertisement revenues is becoming stiff day by day.

Worse still, radios stations are competing for advertisement revenues with other media institutions like TV stations, newspapers, outside advertising and websites.

In 1994 when the government liberalized the media only 3 (three) known local radio stations were operating which included; Radio Uganda (which is government owned), Capital Radio and Radio Sanyu, but today there over 200 radio stations in the country. 

According to the 2008 report on the status of the communication Market by the Uganda Communication Commission, the number of private FM frequencies issued had risen to 200 with 173 of them already operational. Another 27 FM stations have been assigned frequencies but are not yet on air.

To survive in the market and continue making profits, radio stations especially in Kampala (with the biggest concentration) have diversified their activities and started organizing Music concerts. The concerts are attended by thousands because they attract popular musicians like Chameleon, Bobi Wine and Bebe Cool among others. 

In addition to gate collections, the Music Concerts also attract sponsorship deals because of the big crowds they attract which can be exploited by business companies to promote their products.

Central broadcasting services (CBS), Simba FM and recently Beat FM have been organizing music concerts dubbed Ekitobero, Ekiguunda Kyo Mwaka and Oluwombo respectively.

Beat FM events promotions coordinator Ruth Wanyana denies that the shows are meant for profits, “Oluwombo concert isn’t aimed at making profits, the money generated from the event is given to Beat FM radio presenters and organizers who came up the idea. The concert is aimed at rewarding loyal listeners and to expand our listenership.”

“Many people are curious to listen to a radio station, which organizes such a big concert, at the end of the day they get hooked up forever.” Wanyana says.

She adds that in July 29, 2007 when beat FM organized its first show at Nakivubo stadium dubbed Oluwombo. It attracted 35,000 people, each paid 5,000 shillings and enough profits were made (although she refuses to state the real amount).

As a result of the show Wanyana says, Beat FM was ranked as the most listened radio station in greater Kampala region (which includes; Kampala district and the surrounding districts of Mukono, Wakiso, Mpigi and Mityana) by the Steadman group in a study conducted in 2007.

CBS FM commercial events manager Kevin Zziwa also denies that the music concerts are meant for only making profits but largely a Public relations event for the radio station, “the event (Ekitoobero) is meant to celebrate CBS anniversary, reward loyal listeners and show the popularity of CBS FM because of the numbers it attracts for the concerts (more than 50,000 people according to Zziwa) so that advertisers can be brought on board.”

He adds, that the concert makes some profits through gate collections and sponsorship deals but a lot of it is used for social responsibility activities, “sponsorship deals by Jomayi properties, Samona products and Nile Breweries accounts for over 40% of the revenues but most of the profits is used for doing social projects in Buganda Kingdom like support to education which include; donations to Muteesa 1 Royal University and construction of Wobulenzi Public School in Luweero among others."

CBS was the first radio station to come up with the idea; it was followed by Simba FM, Radio West and lately Beat FM. CBS has come up with another concert dubbed Enkuka ya CBS egalawo omwaka which takes place every 31^st of December at Lubiri in Kampala.

Zziwa says the new concert is more popular than Ekitoobero because the number of people, who attend, doubles or triples the number which attends Ekitoobero. This means more profits.