From CNBC:

Radio remains a strong and stable media format, with 92% of Americans listening to traditional radio in a given week in 2009. In comparison, pay TV penetration declined by 20 percentage points between 2014 and 2023, and the industry shrank at a record pace in the third quarter of last year. Terrestrial radio maintains its listenership through local engagement, accessibility, and loyalty from well-known radio personalities.

With the rise of digital audio formats, such as podcasting and streaming platforms, radio giants like iHeartMedia and SiriusXM have adapted by incorporating podcasts and digital content into their business models. However, radio advertising is facing challenges, with iHeartMedia reporting a 5.1% decrease in multiplatform revenue in the third quarter of 2023. The decline in ad revenues is also observed in the TV industry, with predictions of an 18% drop in global TV ad revenue for 2023.

Although terrestrial radio faces advertising headwinds, the industry remains robust amid the broader contractions in the media industry. While iHeartMedia’s broadcast advertising revenue is expected to decline about 23% for the full year 2023 compared to 2019 levels, the company’s total revenue has grown. iHeartMedia brought in $953 million in revenue in the third quarter of 2023, compared to $948.3 million in the same period in 2019. The hope is to stabilize the terrestrial business and grow the digital business to offset secular pressures and continue growth.



Read more: Radio shows surprising resilience in changing media world