Radio Stations
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,100 radio firms in the US operate radio broadcasting studios and facilities that transmit programming to the public, affiliates, or subscribers. Major revenue categories include local advertising; national and regional advertising; programs; public and non-commercial programming; and network compensation. Satellite radio broadcasters generate the majority of revenue through subscription fees. Public radio stations receive the majority of revenue from listener contributions.
Regulation Impacts Operations
Radio broadcasters are regulated by the Federal Communications Commission (FCC), which governs licensing, ownership, and assignment of frequencies, locations, power, and other technical parameters.
Seasonality Affects Revenues
Revenue can be uneven and subject to seasonal factors.
Industry size & Structure
The average independent radio broadcasting company operates out of a single location, employs about 16-17 workers, and generates $7.4 million annually.
- The radio broadcast industry consists of about 3,100 firms that employ about 53,000 workers and generate about $23 billion annually.
- The industry is concentrated at the top; the top 20 companies account for about 76% of industry revenue.
- The majority of firms operate within a limited geographical market. Large companies include iHeartRadio (formerly Clear Channel Communications), Cumulus Media, NPR, and SiriusXM Radio.
- Large companies may have operations related to other forms of media, such as television or outdoor advertising.
- The industry excludes Internet-only radio services, such as Pandora. Internet-only radio providers are considered part of the Internet broadcasting and services industry.
Industry Forecast
Radio Stations Industry Growth
Recent Developments
Nov 14, 2024 - Radio Is The Most Trusted Medium Among Farmers And Ranchers
- About 72% of farmers and ranchers who responded to a study conducted by Katz Radio said that radio is part of their daily routine and 80% listen several days a week or more. About 51% of all adults surveyed said that radio is part of their daily routine. Radio the most trusted media among farmers and ranchers, with 81% saying that they consider radio to be either “very trustworthy” or “trustworthy.” That level of trust in radio is higher than that of all adults (79%). Farmers' and ranchers' trust in newspapers, magazines, and television are lower – in the case of the latter, significantly lower, at 61% vs. 68% for all adults.
- US radio station advertising will total approximately $13.76 billion in 2024 with $2.98 billion (almost 22%) coming from online radio, according to Statista. The total is more than 4% higher than the 2023 estimated $13.2 in revenue. Retail has been the leading radio advertiser in the US, having invested nearly $394 million in the medium in 2022. Digital's share of US radio ad expenditure has grown consistently since the early 2010s, experiencing a sharper increase after the coronavirus pandemic. Digital's share reached 19% in 2022, up from 10% in 2019.
- Radio stations are airing less local news, according to a Radio Television Digital News Association survey. The median amount of weekday local news decreased 8 minutes year over year in 2023. The average dropped more than 20 minutes, roughly back to where it was two years earlier. Commercial stations experienced a decrease in average minutes aired, whereas non-commercial stations saw an increase in average minutes aired but a slight decrease in median minutes.
- Radio industry employment increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics (BLS). Radio stations moderately decreased their prices during the first nine months of 2024, according to the BLS. Radio station sales are forecast to grow at a 3.64% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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