XTSR Studio (Photo By Tim Barbalace/TU Student)
Radio was not infallible to a down turn from the drop-off of the economy back in 2008. Profits and revenues have been in a decline since 2004. What is interesting is how little the U.S. radio industry has changed within the past eleven years.
The market share of the top 10 radio groups is down slightly, to 48.5 percent of total over-the-air ad revenues in 2014 from 49.9 percent in 2004, according to BIA/Kelsey. The top two radio groups by revenue, iHeartMedia and CBS Radio, have shrunk their total number of stations owned over the last 10 years. The number of radio stations still remains around 11,800. U.S. Radio peaked in their revenue in 2007, right before the economy collapsed, at $21.2 billion. Radio reached its low point of revenue in 2010 at $16 billion, a big drop from 2007. However, radio is starting to come out of the recent recession. In 2014, the overall revenue ascended to $17.4 billion and Zenith is forecasting $17.6 billion for this year. Throughout the recent tumble in revenue, the top 10 radio owners, led by iHeartMedia and CBS Radio, remained firmly entrenched in their upper echelon ratings, although their revenue did suffer as well.
As we recently discussed, radio’s ratings are at an all-time high. Radio is slowly making a climb in revenue after their recent tumble. The all-time high ratings should be very encouraging in order to continue to climb back to the recent highs in revenue. At the end of the day, I do not think radio is going to go anywhere anytime soon. It is also important to realize for those interested in getting into the field of radio that it is difficult to make crazy money. That being said it is possible to have a lucrative career if you can draw a big audience and are entrenched in a major market. The real motive to get involved in radio should be for the passion to talk about or work for your specific interest. Radio is about having fun and enjoying what you are doing. Most people in radio say that they don’t feel like they are actually working. The people and experiences you create are ultimately invaluable.
tim barbalace 