News
Terrestrial Radio: This Is the Bad Time…
The battle over radio recording royalties on Capitol Hill pits two very distressed industries against one another. The recording industry is navigating a category-five digital disruption, and terrestrial radio has its own bundle of problems. According to second quarter figures surfacing Monday, US-based, terrestrial advertising across local and national accounts slumped a heavy 25 percent to $3.4 billion. Overall revenues slipped 22 percent to $4.2 billion for the period, according to data from the Radio Advertising Bureau (RAB).
It gets worse. Over the first half, advertising dropped 23 percent to $7.6 billion, though digital formats showed small gains. Some advertising segments actually improved, including fast food and pre-paid celullar accounts, perhaps a ‘sign of the times’. But the biggest advertisers – US-based automobile manufacturers – continued their dial-down, leaving radio with a tricky predicament ahead. And, little appetite for increased royalty requirements.