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Report: Internet Could Be 'Watershed' For Radio Industry
MONTEREY, CA -- September 28, 2007: "Absent a turnaround in local spot revenue, the radio industry's revenue woes will likely persist," says SNL Kagan's new "Media Trends 2007" report on the media industry. The study predicts that, although radio will benefit from political spending over the next year, the industry must get aggressive about the digital arena if it is going to thrive.

"In 2006, radio received more than $70 million via political ads," says the report. "That could rise to as much as $100 million in 2008. We expect 2008 total radio revenue to increase 3.5 percent over the 2007 expected billings of $20.5 billion." That, says SNL Kagan, would be the industry's best performance since 2002.

After citing radio's regular double-digit revenue gains during the '70s and '80s, the report continues, "The Internet could be a watershed for radio, and double-digit growth might be a thing of the past absent an aggressive push into the digital space."

The report goes on to note that radio's share of U.S. ad billing has dipped from 9.3 percent to 8.1 percent while the Internet's share has risen from 4 percent to 5.9 percent.

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