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December 4, 2005

New technologies threaten radio’s future

Advertising executives at a recent Reuters Media and Advertising Summit have sounded a warning to the radio industry as it faces increasing displacement by popularized new technologies.

By CBR Staff Writer

According to a reports carried by Reuters, satellite radio, digital music players, and the internet have made great inroads into the local entertainment and advertising territory traditionally occupied by radio.

But the approaching demise of the radio industry, according to executives, is not solely attributable to the ascendancy of new technologies. Radio has been suffering a loss to its listenership as a result of increasing advertisement air-time which detracts from the valuable content radio stations have to offer.

The decline in radio revenue since 2003 is thought to show how the over-commercialization of radio and the emergence of new technologies are both contributing to the erosion suffered by the radio industry.

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