Radio Broadcasting & Programming Industry Profile

The US radio broadcasting and programming industry includes about 4,000 companies with combined annual revenue of about $16 billion. Major companies include CBS Radio, Clear Channel Communications, Cumulus Media, Entercom Communications, and Sirius XM Radio. The industry is concentrated: the 50 largest companies account for about 75 percent of revenue.

The industry includes radio networks and stations, but not companies that broadcast only on the Internet or that primarily produce taped radio programs for sale.

COMPETITIVE LANDSCAPE

Business advertising and consumer demographics drive demand. The profitability of individual companies depends on advertisement volume, programming mix, and efficient operations. Large companies have advantages of market dominance, often owning the only radio stations in a geography. Small companies can compete effectively with special programming or broadcasters who attract large audiences.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major industry product lines are broadcasts (air time) and programming, production, and post-production services. Other products include program rights, merchandise sales, equipment rental, and sales of website advertising space. Air time, which includes advertising and network compensation, provides over 90 percent of industry revenue. Local advertising accounts for about 60 percent of total revenue; national and regional ads, for about 15 percent. Programs garner about 15 percent of revenue.

Industry companies produce or acquire radio programs and/or operate radio broadcasting studios and transmission facilities. Radio networks and stations provide a variety of programs for consumers and sell advertising time ("inventory") to businesses and organizations. ...