BIA: Station Sales Sag In Q1
April 14, 2009 at 3:41 PM (PT)
BIA ADVISORY SERVICES' Investing In Radio Market Report for first quarter says that through MARCH, 164 stations were sold for a total of $46 million, down from first quarter 2008, when 769 stations sold for an estimated $700 million. The most recent quarter was the sixth time since 2001 that 1,000 stations or less were sold, but the first in that period for total transaction values to sink below $1 billion; in 2002, the identical number of stations went for $5.4 billion.
BIA's analysis of the market asserts that "the radio industry’s sole opportunity for valuation growth relies on the ability to transform itself into a blended operation of broadcasting, online and other activities ... stations with more than just over-the-air offerings provide the foundations for appraisals that raises its value above their competitors not involved in these other activities."
"Transforming the business model may not come easy for owners, particularly because there is no magic formula, but they will increase the value of their operations simply through off-air diversification, which can take a number of forms," said VP MARK FRATRIK.
BIA CAPITAL STRATEGIES Managing Director MIKE ANDRES adds that "Radio's upside potential lies in its ability to accelerate the pace they take local advertising dollars away from newspapers, once advertisers that have been dormant begin returning. Many local newspapers have been ceasing operations, or moving to online versions, creating opportunity for other local media to fill this need."
BIA is holding a conference, "Winning Media Strategies," to discuss discuss new technologies, shifting consumer demographics, media usage trends, new competition, and how different business models are driving new revenue to traditional media The three-day program is scheduled for MAY 20th-22nd in WASHINGTON.