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).
Revenue for the global radio industry is forecast to reach about $51 billion by 2018, up from about $45 billion in 2013, according to PricewaterhouseCoopers. The US dominates the global radio market. China and India are expected to account for significant revenue growth in the near future, led by the spending power of growing middle classes that will drive more ad revenue. Japan, meanwhile, is expected to see a shrinking, aging radio audience as the country's younger consumers turn to streaming music services.
The US radio broadcasting and programming industry includes about 6,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $19 billion.
The industry includes radio networks and stations, but not companies that broadcast only on the Internet or that primarily produce taped radio programs.
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...