Radio Broadcasting & Programming

Radio Broadcasting & Programming

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate radio broadcast studios and transmit music, talk shows, news, and other audio entertainment formats to the public. Major US-based companies include iHeartMedia, Cumulus Media, and SiriusXM; leading companies based outside the US include the BBC (the UK), NRJ Group (France), and PRISA (Spain).

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 economies of scale in sales operations and in contracting for programming. Small companies can compete effectively with special programming or broadcasters who attract large audiences. The US industry is highly concentrated: the 50 largest companies account for more than 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major industry product lines are radio air time for advertising, which accounts for about 60% of their revenue, and radio air time for programs, which accounts for about 25%. Other products include program rights, merchandise sales, equipment rental, and sales of website advertising space. Air time includes advertising and network compensation.