Media owners cite viability issues concerning Railways’ Mumbai OOH Area package

At the pre-bid meeting and road show covering the Mumbai OOH Area package, organised by Indian Railways in Mumbai on August 29, media owners have raised concerns that are a lot similar to those raised at the pre-bid and road show held by Indian Railways in Delhi NCR in early August. On Package no. 16, which was the focal point of discussion at the pre-bid meeting, the media owners expressed concerns over the high reserve price set by the Railways, and cited a gamut of viability issues.

It is learnt that the participating media owners also pointed to the lack clarity on the formats that included in the tender, as also the inclusion and omission of particular display areas. It was cited that the tender in effect provides only 25% visible media, and that would make the whole contract unviable for the business.

Some of the formats calls for considerable upfront investments and obtaining permissions from the external local bodies would take anything from 6 months to a year, but the railway authority would be charging license fee even before the media construction begins. It was suggested that the licensing fee should be charged from the commencement of the business.

After hearing out the issues, the railway board and EY have assured the participating entities of suitable solutions to the matters discussed.