Product and Service
Companies included in radio broadcasting service sector in video &audio goods and service industry primarily operate radio broadcast stations earning revenue from advertising.
Demand for Product and Service
As indicated by the typical company data, the demand for radio advertising service has been weak and declining in the past three years due to traditional advertisers’ leaving away from radio market.
The Sector
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
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Based on audience base and coverage of radio broadcasting, radio stations have been seen to continue to bring cash flow from local advertising business.
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It seems that demand for radio advertising has been declining in the past three years.
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The decrease in revenue has been hurting profitability of companies and we thus see the cash flow continuingly decrease as revenue and margin went down.
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To maintain margin, we have seen increasing activities in spinning off and acquisition of radio stations.
Causes behind the trend
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Changes in consumers’ habit to acquire information and entertain may be major reason for radio advertisers’ swing away.
Industry Future
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Demand for local radio advertising will continue to exist. However, as advertising revenue of companies in this sector continue to decline, we will see increasing consolidation activities in this sector and costs saving may be the key for completion.
