Radio facing music of challenge

Radio facing music of challenge

Radio listenership is down, revenue growth is anemic, and complaints about programming are omnipresent.
Satellite radio companies point to Clear Channel’s recent efforts to negotiate reduced commercial airtime with its advertisers as a sign that mainstream radio is feeling pressure from satellite.Clear Channel wants to cut down on ad length as well as make them more entertaining. The San Antonio-based company seeks to reduce commercials to the industry average of 15 minutes per hour–one magazine said some stations average 22 to 24 minutes–and not play more than six consecutive spots. Long commercial sets, its station managers say, prompt listeners to turn the dial.

“You’re talking about a business that over the last 30 years plays fewer and fewer songs. There are more and more commercials, there’s less and less diversity”. “Clearly, there’s been an awakening, where music fans and listeners across the country have said, `Wait a minute, Why are the songs always the same? Why are there so many commercials?” Satellite radio remains tiny in comparison with broadcast radio. While 280 million Americans listen to broadcast radio each week, there are just over 3 million satellite radio subscribers, said Inside Radio magazine’s Tom Taylor.

Satellite radio, said Sean Ross, an industry analyst with the Edison Group, is one of many problems affecting the radio industry. Radio professionals, he said, “view satellite radio as competition, but they view other stations in their market as competition, they view the iPod as competition. Satellite has just been one piece of that.


February 21st, 2017

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