MC 2000 Chapter : Radio Industry
Document Summary
Evolution of radio: sale of advertisements lead to national radio networks, benefits of networks, delivered to larger audience, greater advertising revenues, bigger productions and headliners, national radio networks sold program sponsorship to advertisers. Old mediums under threat: advertisers go to television, radio networks shift radio profits toward building tv networks, audiences watch network tv. Payola controversy: record promoters began to pay djs to play certain records, communications act of 1934 made payola illegal, record selection was taken away from djs and given to the program director. Radio industry characteristics: radio is local, radio is fragmented, radio is specialized, radio is personal, radio is mobile. Challenges to radio: satellite radio (sirius and xm, high audio quality, more programming depth, less government regulation, internet radio, began in 1993, continuous stream of audio that cannot be replayed, must pay the cost of double royalties.
