The industry has undergone consolidation to combat a steady decline in audiences.
New York, NY (PRWEB) November 14, 2014
The Radio Broadcasting industry has struggled to maintain its relevance as a destination for major advertisers over the past five years. With the proliferation of alternative media available to the average consumer, such as streaming music services, mobile applications and podcasts, traditional radio has become just one of many possible methods of listening to audio content. “Satellite radio has provided some hope for struggling terrestrial AM and FM broadcasters, but the industry continues to be plagued by a gradual decline in the size of radio audiences,” according to IBISWorld Industry Analyst Nick Petrillo.
To combat the steady decline in audience, the industry has undergone merger and acquisition activity. Rather than many independent stations serving their own individual markets, the industry's largest broadcasting conglomerates have acquired smaller stations as part of their corporate portfolio. “Through acquisition, these major companies can streamline their programming, operate a wider network of stations and more effectively attract major advertisers,” says Petrillo. Although public interest in radio continues to wane, the industry's consolidation has stabilized advertising revenue in recent years. IBISWorld projects industry revenue will reach $1.7 billion in 2014, slipping by a small 0.1% annualized rate in the five years since 2009.
Although the industry's increasing concentration has mitigated its decline over the past five years, broadcasters still hold legitimate concerns regarding the long-term viability of radio. Although increasing per capita disposable income and rising advertising expenditure among major companies will provide the industry with an expected increase in revenue over 2014, consumers and advertisers may both flock to alternative media outlets over the next five years. The Radio Broadcasting industry will likely continue to leverage its popular radio personalities, wide range of political and talk radio forms, continual publicity events and widespread availability to retain listeners and advertisers. However, IBISWorld projects that in the next five years an increasing number of advertisers will pursue competing online media sources instead of radio.
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IBISWorld industry Report Key Topics
This industry consists of broadcasting stations, networks and syndicates that transmit programming through AM, FM and satellite radio channels. The industry does not include operators that broadcast content exclusively through the internet.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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