|NAICS Codes:||515111 515112|
Companies in this industry operate radio broadcast studios and transmit music, talk shows, news, and other audio entertainment formats to the public. Major US-based companies include CBS Radio, Clear Channel Communications, Cumulus Media, Entercom Communications, Radio One, and Sirius XM Radio; leading companies based outside the US include the British Broadcasting Corporation (the UK), NRJ Group (France), and Promotora de Informaciones, also known as Grupo Prisa (Spain).
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. The US industry is concentrated: the 50 largest companies account for about 75 percent of revenue.
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 up to 75 percent of total revenue; national and regional ads, for about 20 percent. Programs garner around 10 percent of revenue.Buy Now