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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Radio Station SWOT Analysis

 

Strengths

 

Radio stations have seen their operating costs plummet over the past ten years as many companies now operate strictly in an online capacity (such as a podcasting company). This trend is expected to continue as more people now download podcasts and listen to streaming music via their mobile devices. As such, the barriers to entry for a new radio station have declined substantially. Any person with a microphone and software can launch their own radio station. Additionally, some radio stations sell space to third parties so that programs can be heard on terrestrial airwaves. The startup costs for a new radio station range from $20,000 to $1.5 million depending on whether or not a company is purchasing a license to transmit a signal. The operating costs of a radio station are considered low.

 

Weaknesses

 

As anyone can now develop a radio station from their comfort of their homes, the competition has steadily increased. This trend is expected to continue in perpetuity. It should be noted that it is extremely difficult to develop a new radio station as an audience needs to be developed. This can take a substantial period of time. As such, a new radio station needs to have an expansive amount of cash on hand before the business reaches profitability.


Opportunities

 

Radio stations can expand their revenues by acquiring shows among popular podcasters that will simulcast their channel with an established radio station. This can substantially boost the CPM (cost-per-thousand impressions) of a radio station. Alternatively, for companies with highly unique content, subscription based models can be employed in order to generate highly recurring streams of revenues. This can substantially boost the valuation of a new radio station.

 

Threats

 

With the rapid decline of radio station startup costs, competitive issues are the primary threat faced by these businesses. This is not expected to change as the ways that people consume media are expanding. The popularity of podcasts will continue to be an issue for these businesses. As such, it is important that a new radio station attracts top talent in order to have shows where tens of thousands of people tune into on a daily basis.


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