Radio Looks To Politics, Web For Relief

From Scientific American - With 2007 poised to be its seventh straight year of slow to no growth, the $20 billion U.S. radio industry hopes to break the trend with political advertising and revenues from nontraditional sources in 2008.

"I think it would be shortsighted to view the industry as hopeless," said Barrington Research analyst James Goss, noting that, despite slow growth and the "challenged" radio environment, these companies are strong cash generators.

"Chances are 2008 will be better due to Internet dollars or nontraditional revenues and political dollars."

While revenue from Web sites, concert promotions and other nontraditional areas amount to less than 10 percent of the total radio industry revenue base, it has grown steadily over the past few years as the rest of the industry lagged in the face of increased competition from iPods, the Web, music- playing cellphones and other entertainment devices.

Radio industry officials believe these revenue sources will contribute more over time. | Read full article