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Introduction to Electronic Media
Class 5, Radio Today
Class 5, Radio Today
Three Cs
Competition
Consolidation
Content
Competition
Audience
1930s: talking movies
1950s: television
1980s: home video
2000s: digital media
Advertising Revenue
TV gets the most (36%)
Newspapers and magazines (26%)
Custom publishing (9%)
Online, Yellow Pages, Alternative (20%)
Radio (8%)
Radio Stations
14,500
AM: 33%
powerhouse stations cater to older listeners
focus on news/talk/sports
dependent on local advertising
FM Commercial: 45%
supermajority % of all radio listening
most profitable stations
major advertisers dominate
FM Non-Commercial: 22%
funding from public sources
Consolidation
Deregulation
National Association of Broadcasters lobbyists for the
broadcast industry
radio group owners should be able to operate multiple
stations in a market
Telecommunications Act 1996
eliminated the seven station rule
no ownership caps
44+ station market: 8 (no more than five on each band)
30–44 station market: 7 (no more than four on each
band)
15–30 station market: 6 (no more than three on each
band)
1–15 station market: 5 (no more than three on each
band)
supergroup
Clear Channel
most radio stations
biggest potential audience
Cumulus
Citadel
ABC Radio Network
CBS Radio
most profitable
highest billing
all-news duopoly in New York, Los Angeles, Chicago
Entercom
Duopoly
in-market control of listening and revenue by a single company
lease management / local marketing agreements
programming
sales
operations
pros
economies of scale
better profitability
cons
insensitive to local concerns
corporate control
Control
highly targeted
intensely researched
Metropolitan Statistical Area (MSA)
Arbitron
cities/regions in radio business
Audience
age
gender
music preferences
lifestyle
ethnicity
Format
program strategy designed to attract the desired audience
group
delivers audience
quantitative: aggregate size
qualitative: tastes and preferences
Programming
News/Talk/Sports
large presence on AM radio
tops all radio formats
NYC: WABC 77
Country Music
1600 stations
tops in FM and second on AM
almost absent from large metropolitan areas
Adult Contemporary
700 stations
NYC: WLTW 106.7
Contemporary Hit Radio
NYC: WPLJ 95.5
Hispanic
NYC: X96.3
Black/Urban
NYC: Power 105.1
Adult Hits
Classic Rock
Jack
Album and Active Rock
Non-Commercial Radio
Community Radio Stations
WMNF Tampa
WFMU 91.1 Jersey City
College Radio
WFUV 90.7 Fordham University
Public Radio
also known as CPB-qualified stations
WNYC 93.9 New York
Satellite Radio
Launched in 2001
XM Radio
Sirius
Specialized Programming
80+ music channels
pop
rock
hip-hop and R&B
dance
country
jazz
classical
17 professional and collegiate sports
MLB
NFL
NHL
NBA
Cricket
golf
auto racing
news and talk
Programming Sources
Local
Syndicated
National
Radio Formats
Format Hole
find an opportunity to connect advertisers and audiences
create a radio format
Audience Analysis
target audience
demographics-psychographics
Format Change
if the advertising market has changed, a format change will
likely occur
Hot Clock
music
commercial spots
news/weather
DJ chatter
Format Wheel
talk radio
commercial spots
news/weather/sports
Dayparts
Morning Drive Time
Afternoon Drive Time
Daytime
Evening
Overnight