Capitalization of Digital Assets, Strength of Local Advertising And Differences in Competition Demonstrate the Radio Industry's Value in Smaller Markets

CHANTILLY, Va. (Business Wire EON) June 5, 2008 -- While large radio markets across the country continue to struggle, small and medium size markets are showing slight gains in revenue and the promise of faster growth than the top 10 markets, according to the estimates of BIA Financial Network, a leading financial and strategic advisory firm serving the media and communications industries. BIAfn's second edition of the quarterly Investing In Radio® Market Report shows that the radio markets ranked 11th and higher will see better revenue growth quicker from the slump in the radio industry due to local advertising support, differences in competition, and their audience's embrace of technological improvements.

Listeners are also beginning to respond favorably to the digital innovations their favorite stations are making through multicasting and live audio streaming, enhanced websites, and HD Radio.

Based on observations of the marketplace, BIA Financial Network expects the small and mid-sized radio marketplace to reach revenue levels equivalent to 2007 by 2011. This time frame is two-three years before large markets such as New York, Los Angeles, and Chicago will rebound to that level. Examples of medium and small markets that are expected to see revenue increases in 2008 include McAllen-Brownsville, Texas (2.8 percent), El Paso, Texas (3.8 percent), Madison, Wis. (1 percent), and Baton Rouge, La. (3 percent). BIAfn anticipates this trend to continue through the next few years.

“The trend towards revenue increases in the small and mid-sized radio markets are significant because they indicate that advertisers in these smaller regions continue to find radio to be an effective medium to reach consumers,” said Mark R. Fratrik, Ph.D., Vice President of BIA Financial Network. “Listeners are also beginning to respond favorably to the digital innovations their favorite stations are making through multicasting and live audio streaming, enhanced websites, and HD Radio.”

“We don't foresee radio operators returning to the double-digit growth they experienced in the earlier part of this decade but it is evident that a resumption of slightly stronger revenue growth will bolster their financial futures as they continue to capitalize on their digital assets and, simply, their positions in their local markets,” Fratrik said.

A chart outlining BIAfn's expectations of the average anticipated revenue growth based on radio market sizes 1-10, 11-50, and 51 and over for the coming five years is available at http://www.bia.com/news_press.asp.

A comprehensive profile of all 302 radio markets is available in the second edition of the quarterly Investing In Radio® Market Report and the new 2008 Investing In Radio® Ownership Report published by BIAfn. Both publications are part of the Investing In financial guide series that includes radio market trend analysis, demographic and economic overviews, competitive overviews, technical data, ownership data, pending and completed transactions, and Arbitron ratings. Information on these publications is available on the BIAfn website at http://www.bia.com/publications_reference_radio.asp.

BIAfn also recently published the Investing In Radio® Pocket Guide Top 100 Markets, Investing In Radio® Pocket Guide Markets 101+ and the 2008 Radio Yearbook. The pocket guides are convenient and portable references to radio markets, allowing readers to rapidly identify key markets and important station details. The Yearbook is a comprehensive directory of stations, owners, personnel, and service providers, including overviews of each market with cross-referenced tables and directory of competitors.

BIAfn also publishes investment reference guides and provides data services for the television and newspaper industries. For more information, call 800.331.5086 or email info@bia.com.

About BIA Financial Network, Inc.

BIA Financial Network, Inc., (BIAfn), has served the media, telecommunications and technology 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.

Release Summary:

Radio industry revenues will increase faster in medium and smaller markets based on estimates of BIA Financial Network, a financial and strategic advisory firm to the media and communications industries.

Keyword Tags:

broadcasting, radio, radio stations, radio broadcasting, revenues, valuations, analysts, Arbitron, broadcasting, business analysts, financial, financial analysts, intelligence analysts.

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