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January 10, 2021 10:04 am  #1

Here's a nice piece in the Globe & Mail about the radio biz...

It is not really a surprise that media spending has gone down, in fact as the article I post a link too...suggests, that revenues dropped by about 52% since April, the markets are volatile still, the term as goes the world, so goes the markets and business.

But, as much as revenues have dropped, radio was needed more than ever to keep us informed and entertained during the past 10 months.

Here's more as to how some of the smaller market and (smaller locally owned stations have managed to keep afloat).

It begs the question, will radio need to change it's revenue models moving forward?

Will user fees be implemented?

Share away Big Yellow!

P.S. Happy new year to you all too, may it be a good year for us all

The world would be so good if it weren't for some people...

January 10, 2021 2:13 pm  #2

Re: Here's a nice piece in the Globe & Mail about the radio biz...

I think you will see some stations have more specialized programming in the future and attract specific non traditional advertisers.  There is a lot of co-op advertising (millions) that never gets utilized and this would be a good stream of new revenue. .It is a bit of work for the sales department and for programming but can pay big dividends.  However all stations can't go after the same co-op dollars so those that move first will get the money.  Also once you have established the relationships with dealers and advertisers it gets easier and more profitable.

Local pay radio?  Other than some community stations that have fundraisers or "partnerships" with listeners can't really see it.  You may see some small commercial independent operations become more and more like community radio however. One revenue stream that some radio outlets have had a bit of success with is trade shows and actually partnering monetarily and benefiting from any profits.  However this won't happen until we are through the pandemic and the economy gets closer to normal.

I am surprised that there's only one or two stations in Canada actually call it quits so far.  The Evanov's Montreal AM station could have very well shut down regardless of the pandemic since it was already losing lots money.  And Kelowna's Soft FM is apparently going to launch again this spring. We have seen a new station come on in my area in the last few months with a few others in Southern Ontario planned for later in the year.   Or could this just be the calm before the storm of many radio operations closing down??


January 10, 2021 7:25 pm  #3

Re: Here's a nice piece in the Globe & Mail about the radio biz...

Most of that 52% drop occurred between April-June, when some stations' revenues were down up to 90%. Things rebounded much faster than I had thought they would, any many had a great fall and are almost back to regular revenues. January and February will be light, but they always are.