Bear Stearns' Miller Analyzes Radio Recovery

At the NAB RADIO SHOW's DICKSTEIN SHAPIRO "Broadcast Financing 2006: Transition to a New Era" presentation, keynote speaker BEAR STEARNS Sr. Managing Director VICTOR MILLER voiced optimism about terrestrial radio's prospects despite problems in recent years.

MILLER said that investors are hoping for 3-5 percent growth, but noted that the industry's value has shrunk to hedge fund investors due to its slide in growth and lack of volatility MILLER said that the radio industry responded to its leveraged state and 2001's radio recession by doing "the wrong thing" in maintaining inventory levels.

CLEAR CHANNEL's "Less is More," said MILLER, "almost had to happen." Analyzing the industry's woes, MILLER noted the effects of the "trifurcation" of radio groups (niche, medium market players, large market players), satellite (about which MILLER voiced skepticism), the revenue loss from HOWARD STERN's departure, and lower listening levels, but added that listening increased slightly in the SPRING.

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