What Business are You In?
From RadioInk Magazine today:
Analyst: Radio A 'No Growth Medium'
NEW YORK -- December 6, 2007: In a new report headed "Broadcast: Reevaluating the Landscape," Wachovia analyst Marci Ryvicker revises her long-term growth estimates for broadcast and outdoor, and is particularly tough on radio.
"Radio is a no-growth medium," Ryvicker wrote. "We previously believed that radio would someday show LSD top-line growth, but after 24 consecutive months of downward estimate revisions, we believe that 0 percent is a more realistic (and possibly the best case) scenario."
Ryvicker downgraded Entercom to "market perform" in light of her revised long-term estimate for radio, but she said that, even in light of her reduced estimates for TV and outdoor, "our model still suggest potential upside for Entravision and CBS."
If you're in the "radio business" or "broadcast business" rather than in the "communication business focused on audio", then Ryvicker is completely correct.
If you understand that the power of what you do is to use audio to inform, educate, and inspire people, then you're in a growth industry with a massive future. Don't be locked into the way things are now. The technology, the formats, the business models, everything is transitory. If you can adjust, you can win. If you can't adjust, you are doomed.
If you're in the "radio business" and you don't want to be left behind, spend some time reading this blog, then drop us an email and let's see how we can help one another.