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 iHeartCommunications (formerly Clear Channel Communications), Cumulus Media, 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 economies of scale in sales operations and in contracting for programming. 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 80% of revenue.
Products, Operations & Technology
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 about 85% of industry revenue. Local advertising accounts for about 50% of total revenue; national and regional ads, for about 15%.