Chantilly, VA - Apr 3 2007 - According to a report from the BIA Financial Network, the radio industry experienced a second year of less than one percent growth in revenues in 2006, achieving a mere 0.4 percent increase in station revenues. The first edition of BIAfn's quarterly Investing In Radio market report says that the year closed with $18.1 billion in income, just slightly higher than the $18 billion recorded in 2005. BIAfn predicts the industry's slump will begin to rebound in 2007 with a growth rate of 2.2 percent.
"As the radio industry continues to adjust to its competitive role within the entertainment industry we still see a slight improvement in radio industry growth," said Mark R. Fratrik, vice president, BIA Financial Network. "The growth we have recently seen has primarily been in the mid level and small markets and should continue, as these markets have responded better to the competitive challenges facing the radio industry."
BIAfn also notes that 2006 was the first time in six years that radio transactions returned to volumes above $22 billion ($24.9b in 2000 and $22.9b in 2006) and the number of stations sold nationwide exceeded 1,000 (1,794 in 2000 and 2,100 by the end of 2006). The high level is connected to the announced privatization of Clear Channel Communications, but even without that sale it demonstrates overall that the industry is considered a smart investment in the long term.