The good news? Radio revenues will increase to $13.9 billion this year. The bad? They were $20 billion ten years ago. Sayeth one analyst:
I’ve been a big critic of the radio industry because it has not responded to the challenges of the Internet era and audience fragmentation. Instead of trying to develop compelling local content, the industry has stripped itself of good talent (the salaries were too high), innovative programming (it costs too much), and local news and information (it costs even more than music programming). The industry has not invested any meaningful revenues in to the digital world as it should have been doing over the past decade, while at the same time Mel Karmazin at Sirius XM is again building audiences and Tim Westergren at Pandora is attracting thousands of new listeners every week with their mobile phone applications. And let’s not even talk about the whole HD radio debacle.
These revenue projections are nothing to get excited about. It’s just more rearranging of the deck chairs on the Titanic.
Read it all here.