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Introduction To Telecommunications

Radio Today

Sunny Hughes

on 12 February 2013

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Transcript of Introduction To Telecommunications

Introduction to Telecommunications
Radio Today Competition, Consolidation, Control Radio Today Stations today target a narrow market segment.
Why? Because listeners have so many choices.

Target Audience: The specific group that the station hopes will listen to their programming.

Format: The type of music or talk that a radio station chooses to program. Formats are usually targeted at a specific segment of the population

Market: The geographical area that is targeted by the radio station

Metropolitan statistical area (MSA): The metropolitan area encompassing the population served by a city's radio stations. Programming 1. Country: 1,997 stations
2. News/talk: 1,437 stations
3. Spanish: 665 stations
4. Sports: 637 stations
5. Oldies: 806 stations
6. Classic hits: 481 stations
7. Adult Contemporary: 637 stations
8. Top 40: 634 stations
9. Classic Rock: 495 stations
10. Hot AC: 417 stations Formats Community Stations: licensed to civic groups, non profits, schools, religious organizations.

500 in the FM band

College Radio: Licensed to universities and colleges
800 stations
650 in Intercollegiate Broadcasting Society

Public Radio Stations: Corporation for Public Broadcasting grants federal funds and programs are received from National Public Radio.

800 NPR affiliated stations
Averages 2% audience share nationwide Non Commercial Radio Approved by FCC in 2000

Power levels between 10 to 100 watts.

Serve small listening area (4 miles or less.)

Must program 36 hours a week.

Must be non commercial.

By 2010, 850 licenses granted. Low Power FM Stations 2001: Sirius and XM radio started offering radio programming

2008: Merged into Sirius XM

2010: Sirius XM had over 20 million listeners (12% listeners) Satellite Radio Quick Facts Number of commercial AM station on the air (2010: 4,790

Number of licensed AM/FM Station in U.S. (2010): 14,503

Leading radio format by audience share (2009): News/talk/information (12.6% share)

Average number of radio station in most U.S. markets: 25

Top U.S. Radio market: Los Angeles Annual U.S. Advertising spending: $164 billion

36% goes to TV & Cable
26% goes to Newspapers and Magazines

Radio gets about 8%

$14.3 billion in 2012 Advertising
Revenue 14,500 commercial station in the U.S.

AM Stations: 4,790 (33%)

FM Station: 6,483 (45%)

Noncommercial stations: 3,180 (22%)

Station breakdown Telecommunications Act of 1996

In large markets with 44+ stations
companies can own up to 8 stations
(no more than 5 AM or FM)

In cities with 30-44 stations
companies can own 7 stations
(no more than 4 AM or FM)

In cities with up to 15 stations
companies can own 5 stations
(no more than 3AM or FM) Control Clear Channel owns over 800 stations in 89 of the largest 100 markets
Revenue=$732 million
Potential Listeners: 143.9 million

Cumulus Broadcasting owns over 300 station in 49 markets.
Revenue=$256.05 million
Potential Listeners: 8.4 million

Citadel owns 205 stations.
Revenue: 732.6 million
Potential Listeners: 11.6 million

CBS Radio owns over 130 stations
Revenue: 1,220 million
Potential Listeners: 77.7 million

Entercom owns over 100 stations.
Revenue: 372.4
Potential Listeners: 17.9 million The Supergroups Lease Management Agreement
(Local Marketing Agreement): arrangement permitting one station or group to control the programming, operations, and sales of additional radio stations in the same marketplace. 1996-present: Number of radio owners in each market has dropped from 13.5 to 10

In top 50 markets, the top group owner controls 36% of market revenue.

In the smallest markets, the top two firms control 75% of radio revenue.

2009 Study by RTNDA

43% of newsdirectors supervised 2-3 radio stations

18% oversaw four station Consolidation Necessary to control the highly competitive radio market. Control MSA Used to identify target audience by age, gender, music preferences, lifestyle, ethnicity,etc.

The format is tailored to the target audience.

This boosts audience numbers and leads to higher advertising revenue. Measuring Markets Arbitron
collects radio data on
300 MSAs. Format for 1600 commercial stations
90% of listeners are 35+

600 stations are sports
majority of listeners are 45+ News/Talk and Sports Country Format for more than 1600 stations

56 million listeners

Most popular with 25-49 year old range

Not popular in leading markets. More than 700 commercial stations
400 "Hot" A/C stations

Women (25-64) are biggest listeners

14% of all radio listening Adult Contemporary Contemporary Hit Radio Music is picked based on chart leaders, sales and downloads

fast rotation: songs are played often

10% of all radio listening

Popular with listeners under 25. Hispanic, Black, Urban

8% of all radio listening Ethnic Formats Adult Hits Majority of listeners are 35-54...
Has grown 30% with 55+ since 2008 Active and Album-Oriented Rock Listeners: Men outnumber women 3 to 1.

Ranks high among teens and millennials (25-34)

Popular in areas with thriving music scene. Internet/Mobile Broadcasting Broadcasting over broadband into home.
14% of smartphone usage was for music.


60 million registered users in 2010.
13million users per month.

Internet music services must pay copy royalty fee to Copyright Royalty Board. Gainesville stations http://www.arbitron.com/home/mm001050.asp http://radio-locator.com/cgi-bin/locate?select=city&city=Gainesville&state=FL Share: Percentage of radio sets tuned to a particular station or channel during a given period.

Rating: Percentage of total potential listeners.

Average Quarter-Hour Persons (AQH Persons): The average number of persons listening to a particular station for at least five minutes during a 15-minute period.

[AQH Persons listening to station / AQH Persons listening to all market radio stations]x100.

CUME: This term is an acronym for “cumulative,” and identifies a particular type of radio audience statistic. The CUME statistic measures the number of individual persons who tune into a given radio station in a calendar week. An individual listener will be counted only once in the CUME statistic, regardless of how many times (s)he listens during the week, or for how long AQH Share:

If in any given quarter-hour there are 2,000 teens in the metro survey area who are listening to radio, and in that same quarter-hour there are 500 of them listening to one particular radio station, it can be said that the station has a 25% share of AQH teen radio listeners.

That 25% is expressed as a decimal number (.25) which in turn is multiplied by 100 and referred to as a “CUME share of 25.” Competition:

Radio is the most competitive media industry.

Radio outnumbers television 3 to 1.

There are five times as many radio stations as newspapers.

There are six times as many radio stations as television. COMPETITION Check out Radio Locator: http://radio-locator.com/cgi-bin/locate?select=city&city=32601&sid=&x=5&y=3
FM: 82% of audience share http://www.loc.gov/crb/
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