Industry Analysis & Industry Trends
Improving advertising budgets will bring some much-needed relief to radio broadcasters, but increasing competition from online music streaming sites, internet-only radio stations and digital music players will hamper industry growth. To maintain profitability, operators will scramble to restructure. One bright spot for the industry will be the growth of satellite radio, which generates revenue from subscription fees on top of advertising... purchase to read more
Industry Report - Industry Investment Chapter
Once a radio station is set up or bought, capital intensity is moderate. Depreciation and recurring capital costs make up a small proportion of operating costs. IBISWorld estimates that for every dollar spent on wages in 2014 about $0.13 will be spent on equipment and maintenance. This level has decreased in the five years to 2014.
The capital costs for setting up a new radio station vary based on the technology used, size and scope. In addition to licenses, radio stations require transmission equipment and studio equipment. Basic AM or FM stations in small markets can be purchased for as little as $100,000. However, for larger markets, these costs quickly rise to several million dollars... purchase to read more