• The New York Times, Friday, September 15, 2006 11:48 AM

It wasn't just video that killed the radio star--add satellite radio and the growing popularity of the iPod to the list. And the medium's challenges are only increasing over time. While 9 out of 10 Americans listen to traditional radio each week, they're not tuning in for long periods of time. Not surprisingly, broadcast radio advertising has taken a hit, growing a tiny 0.3 percent in 2005. Veronis Suhler Stevenson predicts that ad growth will continue to lag for the next five years. The amount of time people tune into radio over the course of a week has fallen by 14 percent over the last decade, according to Arbitron ratings. Plus, over the last three years, the stocks of the five largest publicly traded radio companies are down between 30 percent and 60 percent. This leaves radio conglomerates with no other choice than to come up with new ways of marketing. Clear Channel, for instance, is considering selling 1,200 of its smaller radio stations, and recently forged a partnership with BMW this month to provide real-time traffic updates to the navigation systems in new car models.

Read the whole story at The New York Times »