Broadcast, Cable, the Internet and Beyond Chapter 4 Quick Facts Number of commercial AM stations in 2002: 4,825 Number of commercial FM stations in 2002: 2,140 Number of country radio stations: 2,134 Median salary of radio news anchor: $27,500 (2001) Average number of radio stations in most U.S. markets: 25 Number of listeners in New York City: 17.8 million Number of stations playing a polka format: 8
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Broadcast, Cable, the Internet and Beyond Chapter 4 Quick Facts zNumber of commercial AM stations in 2002: 4,825 zNumber of commercial FM stations in 2002:
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Broadcast, Cable, the Internet and Beyond Chapter 4
Quick Facts
Number of commercial AM stations in 2002: 4,825 Number of commercial FM stations in 2002: 2,140 Number of country radio stations: 2,134 Median salary of radio news anchor: $27,500 (2001) Average number of radio stations in most U.S. markets:
25 Number of listeners in New York City: 17.8 million Number of stations playing a polka format: 8
Broadcast, Cable, the Internet and Beyond Chapter 4
Radio’s three C’s indicate the nature of the business
Competition Consolidation Control
Broadcast, Cable, the Internet and Beyond Chapter 4
Competition
There are more radio stations than any other media 5 times more radio than newspapers 10 times more radio than television
There’s competition for advertising revenue within the radio market
Broadcast, Cable, the Internet and Beyond Chapter 4
Advertising Revenue by Medium (2001)
Newspaper21%
Magazines6%
Broadcast TV19%
Cable TV8%
Radio9%
Internet 3%
Other Media12%
Direct Mail22%
Newspaper
Magazines
Broadcast TV
Cable TV
Radio
Internet
Other Media
Direct Mail
Broadcast, Cable, the Internet and Beyond Chapter 4
The Radio Station Universe
Out of the 13,000 stations 37% are commercial AM stations 47% are commercial FM stations 16% are noncommercial FM stations
Radio is a locally based medium AMs in local markets rely on local advertising FMs frequently dominate in larger cities, combination of national
spot and local advertising
Broadcast, Cable, the Internet and Beyond Chapter 4
Share of the Audience
FM stations - 80% of all radio listeningThe most profitable of all stations
Big FM stations in major cities AM news/talk stations in major cities
Too early to talk about the effect of satellite radio
Broadcast, Cable, the Internet and Beyond Chapter 4
Consolidation
Increasingly competitive nature of radio reflects the companies now involved in the medium
1990s - NAB lobbied to deregulate radio Mom and Pop stations have largely disappeared Groups ownership restrictions were lifted Telecommunications Act of 1996 shifted the radio
landscape
Broadcast, Cable, the Internet and Beyond Chapter 4
The Telecommunications Act of 1996
Relaxed ownership standards No limit to total number of stations a group can own
Set as a maximum that group owners could own up to 8 stations in one marketplace
Supergroups of station owners formed
Broadcast, Cable, the Internet and Beyond Chapter 4
America’s 10 largest radio group owners Rank GroupOwner Stations 1 Clear Channel Communications 1240 2 Cumulus Broadcasting Inc. 257 3 Citadel Communications Corp 210 4 Infinity Broadcasting 185 5 Entercom 97 6 Cox Radio Inc. 86 7 Salem Communications Corp. 72 8 Entravision Communications Co. 68 9 ABC Radio Inc. 53 10 NextMedia Group 51
Sources:FCC Review 2001/ Broadcasting and Cable 9-2-02
Broadcast, Cable, the Internet and Beyond Chapter 4
TABLE 4.2 Largest Radio Group Owners by Revenue Rank Group Revenue ($000) % total revenue 1 Clear Channel $ 3,388,265 26.2% 2 Infinity Broadcasting 2,354,350 18.2% 3 Cox Radio Inc. 455,300 3.5% 4 ABC Radio Inc. 435,100 3.4%