by Jennifer McClure
By the end of 2008 the radio industry will have experienced its second year of negative growth by tripling station revenue losses to -7 percent, according to the estimates of BIA Advisory Services .
BIA’s fourth edition of the quarterly Investing In Radio® Market Report also reports that 641 stations have been sold in transactions valued at $698 million from January through October 2008, a -34 percent change from the same period in 2007 in the number of stations sold and a -44 percent in the value. When the year ends, this will be the lowest level since 1992.
BIA estimates radio station revenues will hit $16.7 billion in 2008, the lowest in more than five years and the beginning of a downward spiral that will go as low as $15 billion next year before possibly rebounding in the next decade. Investing In Radio® Market Report illustrates that revenue percentages will fall another 10 percent in 2009 yet will have a chance for positive growth by 2010.
Radio’s future relies heavily on its embrace of new media and mobile technologies and local advertisers. This was recently the subject of a panel led by Rick Ducey, BIA’s chief strategy officer, at the November “Interactive Local Media Conference,” organized by BIA’s The Kelsey Group.