Radio By: Tara Gould

RadioBy: Tara Gould

Revenue Sources• Radio stations generate

their revenue almost strictly from ad sales.

• The number of ads they can sell are limited.

• The price of ads are determined by the ratings of the radio station (the more popular the station, the more they charge).

Revenue Today

• 2009• Annual Total Revenue $13,800,000,000

• Drop of 18.4% from 2008• Decline due to the slowing economy

Original Revenue

• When radio first started, it was a much smaller market than today. It began in 1899, and gained popularity in the 1920’s.

• I was not able to find history of its revenues from when it first began.

• They initially had uninhibited revenues until 1923, when recording artists won the right to charge licensing fees. This caused them to rely more heavily on ad sales.

Future Business Model?

• As we discussed in class, legacy media needs to become a “bottom-up” business, instead of “top-down.”

• This diagram displays that perfectly, as the “creators” are the smallest area surrounded by the “crowds.

Family TreeWhat led to Radio

Telegraph

Radio

Telephone

Family TreeWhere Radio is Going

• Things are constantly changing, and radio is adapting to other changes in technology.

Legacy Radio(Analog)

Online Broadcasting

Digital/Satellite Radio 3G Radio

A Thank You To…• Radio can be attributed to many people, as several

technologies were required for its success.– Samuel Morse (telegraph)– Alexander Graham Bell’s (telephone)

• Guglielmo Marconi, combined these technologies to transmit the first radio signal in Italy in 1895. He continued to improve the distance that messages could be sent and received.

Radio and Society

• When radio first began, it was not widely available, but increased quickly.

• Radio was the first means of mass communication. News reporters could get a message out, as could advertisers.

• This new form of communication had advantages for many people.

Technology

• Radio is being challenged by online broadcasting and other systems that allow listeners to choose what they want, when they want it.

• New technologies are always competing for $.

• However, radio is holding up well. They still hold a large share of the listening market.

• The technology needed for radio is well established.

Why Radio?

• The time that I spend immersed in media is of great value to me, and most of it is listening to the radio. I find music relaxing, and enjoy hearing some talk shows.

• Radio has the greatest effect on me, and helps me to be productive with my time.

• http://en.wikipedia.org/wiki/Radio• http://www.rbr.com/radio/22680.html• http://en.wikipedia.org/wiki/History_of_radio• http://inventors.about.com/od/rstartinvention

s/a/radio.htm• http://www.rab.com/public/pr/yearly.cfm