1. The Radio Industry

2. A Brief History of Radio 1840s -- telegraph 1860s -- James Maxwell -- theorized about electromagnetic waves 1880s -- Heinrich Hertz -- proved existence of these waves 1896 -- Marconi received patent for wireless telegraphy 1899 -- Lee De Forest wrote dissertation on wireless technology

3. 1912 -- Radio Act of 1912 Titanic 1919 -- first broadcasts in Pittsburgh 1920 -- first professional broadcasts -- national returns from Cox-Harding presidential election 1922 -- first radio ad sold for $50

4. David Sarnoff begins NBC network in 1926 1933 -- NBC-Red had 28 affiliates and NBC-Blue, 24 affiliates advantages of network control program costs avoid unnecessary duplication

5. chaos in industry Radio Act of 1927 Federal Communication Act of 1934 golden age of radio -- 1930s and 1940s FM -- first licensed in 1941 advent of television threatened radio radio responded by developing “format radio”

6. AM Amplitude Modulation

7. FM Frequency Modulation

8. Clear Channel do not turn signals down at night can be heard from great distances

9. Payola payment to radio programmers to play particular songs

10. Radio is Mature Industry

11. Market Reach Consumer “Use” Room for Growth

14. Economics of Radio Most advertiser supported Satellite – subscriptions $16,000,000,000 $16 billion

17. Radio Stations in U.S. 14,420 as of December 31, 2010 (F.C.C.)

18. AM RADIO 4,790 FM RADIO 6,479 FM EDUCATIONAL 3,151 __________________________ TOTAL 14,420

19. REGULATION

20. Ownership 1953: 7-7-7 1984: 12-12-12 1988: 18-18 1990: 20-20 1996 -- no limits on total number of stations could own

21. Ownership Big market (45 or more stations) -- can own 8 stations, no more than 5 of a kind 30-44 commercial stations, can own 7, but no more than 4 of a kind 15-29 commercial stations, can own 6, no more than 4 of a kind 14 or less, can own 6, no more than 4 of a kind, no more than 50% of the market

22. significant consolidation significant concentration

23. Station Groups Clear Channel - 844 Cumulus Media -- 303 Citadel Broadcasting – 205 The List

24. THE RADIO AUDIENCE Audience estimates provided by: Arbitron

25. Radio Audience Terms ADI

26. ADI Area of Dominant Influence signal’s area of dominant influence

27. Top Radio Markets (1) New York (2) Los Angeles (3) Chicago (4) San Francisco (5) Dallas-Ft. Worth (6) Houston-Galveston (7) Atlanta

28. (8) Philadelphia (9) Washington, D.C (10) Boston [by population]

29. When Where Who How Much Impact

30. WHEN

33. WHERE

35. Source: Mediamark Research & Intelligence LLC, Doublebase 2009

36. WHO

42. HOW MUCH

44. IMPACT

48. Radio Advertising $20 billion in 2005 $20 billion in 2004 $19.6 billion in 2003 $19.4 billion in 2002

49. Radio Revenue Top National Advertising Categories retail media and advertising automotive telecommunications financial

50. Top NationalNetwork & Spot SBC Communications Verizon Time Warner Home Depot DaimlerChrysler

51. Top Nationalbrand Home Depot Home Center Verizon Wireless Service SBC Long Distance Residential GEICO Auto Insurance Dodge Dealers

52. Top Radio Formats - # Country 2,195 News/Talk 1,133 Oldies 784 Adult Contemporary 713 Hispanic 574 Adult Standards 572 Top 40 469

53. Soft Adult Contemporary 381 Hot AC 360 Religion (Teaching, Variety) 354 Classic Rock 336 Sports 332

54. Top Radio Formats - Audience News/Talk 17.0% Adult Contemporary 13.4% Contemporary Hit 11.2% Urban 10.2% Hispanic 9.8%

55. Formats & Audience Teens 12-17: Top 40, Urban and Alternative 18-24: lean more toward Alternative while maintaining continued interest in Top 40 and Urban Adults 25-34: Alternative, Rock and Spanish Urban, Top 40 and AC popular as well

56. 35+: Rock, New AC/Smooth Jazz, AC and Oldies 45-54: Oldies, New AC/Smooth Jazz 55-64: Classical, Adult Standards, News/Talk/Information and New AC/Smooth Jazz 65+: Adult Standards, Classical, News/Talk/Information

57. AC Alternative Christian Classical Country Jazz Hip/hop and R&B Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

58. AC Alternative Christian Classical Country Jazz Hip/hop and R&B Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

59. AC Alternative Christian Classical Country Jazz Hip/hop and R&B Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

60. AC Alternative Christian Classical Country Jazz Rythmic AC/Top 40 Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

61. AC Alternative Christian Classical Country Jazz Rhythmic AC/Top 40 Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

62. AC Alternative Christian Classical Country Jazz Rhythmic AC/Top 40 Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

63. AC Alternative Christian Classical Country Jazz Hip/hop and R&B Oldies Rock Spanish Top 40 610 89.3 88.9 94.9 95.7 100.3 101.3 102.1 103.3 105.3 107.7 KBRG KDFC KFRC KIOI KITS KKSF KOHL KLVR KSAN KYLD The Wolf

64. Radio format answers -Country – The Wolf -95.7 -Adult Contemporary - 101.3 KIOI STAR -Rock - 107.7 KSAN – The BONE -Alternative -105.3 KITS -Rhythmic Contemporary/Top 40- 94.9 KYLD

65. Networks ABC Radio (entertainment, rock, talk) CBS Radio American Urban Radio Networks Unistar Westwood One

66. Four Advantages of Networks Reduced transaction costs one network schedule takes care of 200 affiliates Increased efficiency advertisers need only deal with one network (who might guarantee the audience) Success breeds success in network scheduling of programs Distribution costs reduced cost of transmitting signals to affiliates reduced if same program scheduled simultaneously

67. New Developments Digital Transmission IBOC Satellite Podcasting