Challenging Times Ahead For Radio Industry
A new analyst
report suggests that radio is in for some tough times ahead. James
Boyle, vice president and senior analyst for CL King & Associates
(an investment research firm with offices in New York and Boston),
paints a less than flattering picture of the radio industry.
the plunge radio stocks have taken the last 30 months reverse itself
when the industry�s prospects haven�t brightened sufficiently? �All
the trends are weak to disappointing, if not downright depressing,�
he contends...and this from an analyst whose family has been in
radio for 50 years.
Among the red
flags pointed out by Boyle: Erosion. He suggests it is worse than
industry observers realize and is accelerating. �Radio listenership
is actually declining faster than analysts, investors and
He says the
rate of that erosion is inexplicably faster among women, which he
points out is counter to conventional wisdom. �This is not a good
trend,� Boyle notes.
his report, radio�s latest quarterly ratings book reported the worst
year-over-year drop in the last 10 years, with listenership down
the industry�s traditionally strong advertising categories are
cutting back. The CL King report says the telecom industry, for
example, purchased 35% fewer radio spots in 2005 compared to 2004.
The auto industry, another important buyer of radio, is also looking
�Too many of
us have for too long kidded ourselves that the radio sector was, is,
or is soon to be poised for a marked upturn,� Boyle admits in his