The Broadcast Business
The Broadcast Business Com 2400
Popular in Intro to Media and Telecom
Popular in Communication Studies
This 3 page Class Notes was uploaded by Rio Frohriep on Thursday November 12, 2015. The Class Notes belongs to Com 2400 at Western Michigan University taught by Kayany in Summer 2015. Since its upload, it has received 48 views. For similar materials see Intro to Media and Telecom in Communication Studies at Western Michigan University.
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Date Created: 11/12/15
Comm 2400 Intro to Media and Telecommunication Radio as a Business How they make money Invention of the Transistor William Shockley Walter Houser Brattain John Bordeen Inventors of the transistors to replace bulky vacuum tubes Radio Becomes Personal Media Receiver sets Required less Power Became small and portable More shockresistant Became Cheaper Radio adjusts to TV Stars like Jack Benny and Bob Hope shifted to TV Radio networks lost mass market advertising Radio turned to more local advertising Radio changed to specialized audiences and playing recorded music Radio and the Recording Industry RadioRecording had a lovehate relationship from Day 1 Radio was expected to increase record sales However it didn t go as planned American Society of Composers Authors and Publishers ASCAP was established in 1923 to collect royalties With the arrival of TV both industries realized that a cooperative relationship is better than outright competition Radio Industry Today Most competitive hence regulated less Rule The more competition there is the less the gov t regulates said media Over 14000 overtheair radio broadcasting stations 9 of the total advertising revenue almost 15 billion Radio Programing Radio has become a highly targeted medium Atypical radio station matters to a narrow market segment who prefer a specific kind of music or programs Radio adopts a strategy similar to that of advertisers Advertisers know that products in the market are bought by a small group of people of a certain type As a business owner you have to first identify the people most likely to buy your product then try to reach them specifically Radio Business Strategy Radio s success depends on finding a niche audience whose needs are not currently met or met inadequately Radio owners conduct audience research to identify an audience segment they can attract to their programs Audience Research Commercial radio industry studies a market and classifies the radio listeners based on their Demographic Age Gender Race et cetera Psychographic Life Style Hobbies et cetera Two Views of the Same User Demographic Overview Psychographic Overview Mom Woman Age 2534 First child between 5 months Household Income 70K and 9 mOMhs Spends 1500mo online 39 Lives 1000 miles from parents and inlaws 0 Lives within 3 miles of existing facility Programing Strategy Format Based on the audience data a new station develops its programing strategy for attracting the audience segment This Program Strategy is called the Format of the radio station Radio Industry Structure Local Radio Stations Radio Groups One company owns multiple stations Satellite Radio Local stations Over 14000 local stations 33 AM commercial 45 FM commercial 22 Noncommercial religious groups schools etc Earn most of their revenue from local advertisers MomampPop stations gave way to radio groups Overship Limits Prior to 1996 FCC had strict limits on the number of stations one personcompany could own 7 AM 7 FM Telecommunications Act of 1996 relaxed the ownership rules 58 stations in a market average number of stations per market 25 Radio Groups Consolidation wave of 1996 iHeartMedia inc is the largest radio group and owns 850 stations Advantages Savings in production cost and national advertising Disadvantages Lack of sensitivity to local concerns Satellite Radio Digital Audio Broadcast directly from a satellite to the radio receiver Uses 23 GHz Sirius and XM Satellite Radio were the two big satellite providers It was expected that the concept of subscription radio would take off like HBO It didn t The two companies eventually merged in 2008 Now known as Sirius XMI Music Streaming Services It was expected that Satellite radio would be the main competitor for radio but that title goes to streaming services Both Free and Fee models Apple Music 11 million users Spotify 75 million users 20 million pay subscribers Rhapsody 3 million users Pandora 80 million users Sound Cloud 250 million users
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