Radio industry

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Radio industry

  1. 1. The Radio Industry<br />
  2. 2. A Brief History of Radio<br />1840s -- telegraph<br />1860s -- James Maxwell -- theorized about electromagnetic waves<br />1880s -- Heinrich Hertz -- proved existence of these waves<br />1896 -- Marconi received patent for wireless telegraphy<br />1899 -- Lee De Forest wrote dissertation on wireless technology<br />
  3. 3. 1912 -- Radio Act of 1912<br />Titanic<br />1919 -- first broadcasts in Pittsburgh<br />1920 -- first professional broadcasts -- national returns from Cox-Harding presidential election<br />1922 -- first radio ad sold for $50<br />
  4. 4. David Sarnoff begins NBC network in 1926<br />1933 -- NBC-Red had 28 affiliates and NBC-Blue, 24 affiliates<br />advantages of network<br />control program costs<br />avoid unnecessary duplication<br />
  5. 5. chaos in industry<br />Radio Act of 1927<br />Federal Communication Act of 1934<br />golden age of radio -- 1930s and 1940s<br />FM -- first licensed in 1941<br />advent of television threatened radio<br />radio responded by developing “format radio”<br />
  6. 6. AM<br />Amplitude Modulation<br />
  7. 7. FM<br />Frequency Modulation<br />
  8. 8. Clear Channel<br />do not turn signals down at night<br />can be heard from great distances<br />
  9. 9. Payola<br />payment to radio programmers to play particular songs<br />
  10. 10. Radio is Mature Industry<br />
  11. 11. Market Reach<br />Consumer “Use”<br />Room for Growth<br />
  12. 12.
  13. 13.
  14. 14. Economics of Radio<br />Most advertiser supported<br />Satellite – subscriptions<br />$16,000,000,000<br />$16 billion<br />
  15. 15.
  16. 16.
  17. 17. Radio Stations in U.S.<br />14,420<br />as of December 31, 2010<br />(F.C.C.)<br />
  18. 18. AM RADIO 4,790<br /> FM RADIO 6,479<br /> FM EDUCATIONAL 3,151<br /> __________________________<br /> TOTAL 14,420<br />
  19. 19. REGULATION<br />
  20. 20. Ownership<br />1953: 7-7-7<br />1984: 12-12-12<br />1988: 18-18<br />1990: 20-20<br />1996 -- no limits on total number of stations could own<br />
  21. 21. Ownership<br />Big market (45 or more stations) -- can own 8 stations, no more than 5 of a kind<br />30-44 commercial stations, can own 7, but no more than 4 of a kind<br />15-29 commercial stations, can own 6, no more than 4 of a kind<br />14 or less, can own 6, no more than 4 of a kind, no more than 50% of the market<br />
  22. 22. significant consolidation<br />significant concentration<br />
  23. 23. Station Groups<br />Clear Channel - 844<br />Cumulus Media -- 303<br />Citadel Broadcasting – 205<br />The List<br />
  24. 24. THE RADIO AUDIENCE<br />Audience estimates provided by:<br />Arbitron<br />
  25. 25. Radio Audience Terms<br />ADI<br />
  26. 26. ADI<br />Area of Dominant Influence<br />signal’s area of dominant influence<br />
  27. 27. Top Radio Markets<br />(1) New York<br /> (2) Los Angeles<br />(3) Chicago<br />(4) San Francisco <br />(5) Dallas-Ft. Worth<br />(6) Houston-Galveston <br />(7) Atlanta<br />
  28. 28. (8) Philadelphia<br />(9) Washington, D.C <br />(10) Boston<br />[by population]<br />
  29. 29. When<br />Where<br />Who<br />How Much<br />Impact<br />
  30. 30. WHEN<br />
  31. 31.
  32. 32.
  33. 33. WHERE<br />
  34. 34.
  35. 35. Source: Mediamark Research & Intelligence LLC, Doublebase 2009<br />
  36. 36. WHO<br />
  37. 37.
  38. 38.
  39. 39.
  40. 40.
  41. 41.
  42. 42. HOW MUCH<br />
  43. 43.
  44. 44. IMPACT<br />
  45. 45.
  46. 46.
  47. 47.
  48. 48. Radio Advertising<br />$20 billion in 2005<br />$20 billion in 2004<br />$19.6 billion in 2003<br />$19.4 billion in 2002<br />
  49. 49. Radio Revenue<br />Top National Advertising Categories<br />retail<br />media and advertising<br />automotive<br />telecommunications<br />financial<br />
  50. 50. Top NationalNetwork & Spot<br />SBC Communications<br />Verizon<br />Time Warner<br />Home Depot<br />DaimlerChrysler<br />
  51. 51. Top Nationalbrand<br />Home Depot Home Center<br />Verizon Wireless Service<br />SBC Long Distance Residential<br />GEICO Auto Insurance<br />Dodge Dealers<br />
  52. 52. Top Radio Formats - #<br />Country 2,195<br />News/Talk 1,133<br />Oldies 784<br />Adult Contemporary 713<br />Hispanic 574<br />Adult Standards 572<br />Top 40 469<br />
  53. 53. Soft Adult Contemporary 381<br />Hot AC 360<br />Religion (Teaching, Variety) 354<br />Classic Rock 336<br />Sports 332<br />
  54. 54. Top Radio Formats - Audience<br />News/Talk 17.0%<br />Adult Contemporary 13.4%<br />Contemporary Hit 11.2%<br />Urban 10.2%<br />Hispanic 9.8%<br />
  55. 55. Formats & Audience<br />Teens 12-17: Top 40, Urban and Alternative<br />18-24: lean more toward Alternative while maintaining continued interest in Top 40 and Urban<br />Adults 25-34: Alternative, Rock and Spanish<br />Urban, Top 40 and AC popular as well<br />
  56. 56. 35+: Rock, New AC/Smooth Jazz, AC and Oldies<br />45-54: Oldies, New AC/Smooth Jazz<br />55-64: Classical, Adult Standards, News/Talk/Information and New AC/Smooth Jazz<br />65+: Adult Standards, Classical, News/Talk/Information <br />
  57. 57. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Hip/hop and R&B<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  58. 58. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Hip/hop and R&B<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  59. 59. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Hip/hop and R&B<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  60. 60. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Rythmic AC/Top 40<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  61. 61. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Rhythmic AC/Top 40<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  62. 62. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Rhythmic AC/Top 40<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  63. 63. AC<br />Alternative<br />Christian<br />Classical<br />Country<br />Jazz<br />Hip/hop and R&B<br />Oldies<br />Rock<br />Spanish<br />Top 40<br />610<br />89.3<br />88.9<br />94.9<br />95.7<br />100.3<br />101.3<br />102.1<br />103.3<br />105.3<br />107.7 <br />KBRG<br />KDFC<br />KFRC<br />KIOI<br />KITS<br />KKSF<br />KOHL<br />KLVR<br />KSAN<br />KYLD<br />The Wolf<br />
  64. 64. Radio format answers<br />-Country – The Wolf -95.7<br />-Adult Contemporary - 101.3 KIOI STAR<br />-Rock - 107.7 KSAN – The BONE<br />-Alternative -105.3 KITS<br />-Rhythmic Contemporary/Top 40- 94.9 KYLD<br />
  65. 65. Networks<br />ABC Radio (entertainment, rock, talk)<br />CBS Radio<br />American Urban Radio Networks<br />Unistar<br />Westwood One<br />
  66. 66. Four Advantages of Networks<br />Reduced transaction costs<br />one network schedule takes care of 200 affiliates<br />Increased efficiency<br />advertisers need only deal with one network (who might guarantee the audience)<br />Success breeds success in network scheduling of programs<br />Distribution costs reduced<br />cost of transmitting signals to affiliates reduced if same program scheduled simultaneously<br />
  67. 67. New Developments<br />Digital Transmission<br />IBOC<br />Satellite<br />Podcasting<br />

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