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Radio Broadcasting and Programming
First Research, Sep 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US radio broadcasting and programming industry includes about 6,800 companies with combined annual revenue of $16 billion. Major companies include Clear Channel Communications, Cumulus Media, Citadel Broadcasting, and CBS Radio. The industry is concentrated: the 50 largest companies account for about 75 percent of revenue, and the top four account for about 45 percent of the total. A typical midsized radio station has annual revenue of around $5 million.
The industry includes radio networks and stations, but not companies that broadcast only on the Internet or that primarily produce taped radio programs for sale.
COMPETITIVE LANDSCAPE
Business advertising and consumer demographics drive demand. The profitability of individual companies depends on advertisement volume, programming mix, and efficient operations. Large companies have advantages of market dominance, often owning the only radio stations in a geography. Small companies can compete effectively with special programming or broadcasters who attract large audiences. Average annual revenue per worker is $140,000.
Pay-for-service radio is a recent strategic development in the industry.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major industry product lines are broadcasts ('air time') and programming, production, and post-production services. Other products include program rights, merchandise sales, equipment rental, and sales of website advertising space. Air time, which includes advertising and network compensation, provides over 90 percent of industry revenue. Local advertising accounts for 65 percent of total revenue; national and regional ads, for 25 percent. Programming and broadcasting services provide ...
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