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BIA Financial Network Reports Radio Industry Commitment to HD Radio(TM) and Other Revenue Generating Activities Hold Promise

Posted on: Wednesday, 26 September 2007, 12:00 CDT

The radio industry has made a tremendous commitment towards implementing HD Radio™ at stations across the country. According to estimates of BIA Financial Network (BIAfn), a leading financial and strategic advisory firm serving the media and communications industries, using data provided by iBiquity Digital Corporation, developer of HD Radio technology, the HD Radio stations already on the air contributed 57.5 percent of all radio station revenues generated in rated markets in 2006. On-air HD Radio stations in five markets (Detroit, Philadelphia, Hartford, Stamford, and Toledo) collectively generated more than 90 percent of the revenues in those markets. A chart of the top 10 radio markets with the largest concentration of HD Stations, as measured by the sum of 2006 local radio revenue share, is available at http://www.bia.com/images/TopHDMarkets.gif.

"In many markets the major radio stations have already made the commitment to this new technology and are well-suited once receivers are in the hands of consumers and are embraced through mass market penetration," says Mark Fratrik, Vice President, BIA Financial Network.

The industry's embrace of HD Radio holds some promise for stations and owners nationwide, as does the continued adaptation to new media opportunities such as webcasting, podcasting, and innovative technologies that capitalize on web assets and even encourage radio listening.

"Radio stations are continuing to find new ways to generate revenues outside of traditional advertising sources, which is essential given the lackluster recent history of radio revenues," according to Fratrik.

Total radio revenue growth for 2007 should remain flat or increase one percent for the entire industry, with an expected one-two percent pickup for 2008, according to BIAfn. This slight pickup will be better than the most recent years, though still lagging behind the growth in several other media.

"I continue to remain optimistic about the future of radio because the transformation to digital and the creative solutions stations have discovered to preserve listeners point to the endurance of the industry," said Fratrik. "Naysayers who report the demise of radio neglect to consider that it is one of the oldest mediums with a large, devoted following and brand recognition even a soda company would envy. Even to a new generation, the appeal of transportable, CD-quality, free music will keep stations in business for years to come, provided they offer today's popular formats."

Fratrik also pointed to the improvement of radio station websites and the increasing methods of two-way communications that stations have found. For example, Emmis Communications' station's websites are reported to bring large volumes of music purchasers to iTunes. BIAfn's subsidiary, BIA Information Network, reports increased attention to its ActiveAccess branded desktop application that allows broadcasters to deliver branded promotions, news, audio, severe weather alerts, advertising and other customized information through a downloadable computer program that resides on a listener's desktop.

About BIA Financial Network, Inc.

BIA Financial Network, Inc., (BIAfn), has served the media and communications industries for more than two decades with financial and strategic advisory services, as well as a comprehensive array of research and investment resources. In addition to providing competitive and comparative information and analysis, BIAfn is also the nation's leading communications appraisal and valuation firm. Its affiliated company, BIA Capital Strategies, provides merger and acquisition advice, and arranges equity and debt funding. BIA Digital Partners LP provides subordinated debt and preferred equity investments to medium stage communications companies. Additional information is available at www.bia.com.

Source: Business Wire

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