Private Radio Thriving Amid Competition
The Financial Post's Sean Silcoff has an interesting column looking at how Canada's private radio industry is thriving at a time when other media - newspapers, television, magazines - are struggling with the Internet's growing popularity. Silcoff points out radio listenership has remained steady at 532 million hours over the past six years, while sales have climbed by 5.6% a year over the past decade. Meanwhile, operating margins climbed to 21% - 3.5x the level in 1995.
So has commercial radio in Canada managed to thrive at a time when competition has increased from the Web, satellite-radio and the iPod? Maybe, it's the local nature of radio - the fact it provides people with local weather, traffic conditions and news; stuff that the Web and satellite-radio struggle to provide. While local search is all the rage these days as Google and others such as Ask.com look to expand, the job of providing local information has continued to effectively handled by local-based media.
This is something newspapers need to grasp as they look for a new recipe for success. Rather than trying to compete with Google.com or CNN, newspapers should put a lot more resources on local coverage in their print and digital publications. It's this kind of content that will keep them relevant to readers and advertisers. In Toronto, the Toronto Star's efforts to provide even more local coverage has been abundantly evident in recent months. This is a strategy more newspapers will have to embrace going forward.
