More and more young people don't tune into radio stations at all anymore. Is this the end for radio? Radio tries to survive these threats from TV, CD players and iPods. It does seem to be a painful and slow goodbye is advertising dollars gradually evaporate and audiences dwindle. They will now focus on profitable television and cable broadcasting segments. If CBS cannot find a buyer first hundred and 17 stations in 29 US markets it will offer shares via initial public offering. No buyers have stepped forward publicly so most likely it will be common IPO.
While CBS Radio is profitable advertising revenue for radio as a whole has been on a downward march for years. CBS Radio reported a 5% decline in net income last year. Across the radio industry, ad dollars are projected to fall 2% this year to 14.2 billion. Meanwhile digital advertising revenue is rising. Online radio broadcasters advertising has grown 8.6% from 2014 to 2018. The CEO of a Virginia-based media industry consultant Borrell Associates has projected that about half of all AM and FM radio stations will be gone by the middle of the next decade. If science fiction is any great predictor of the future you don't see people on Star Trek listening to the radio.
Consider a car's dashboard these days. In the past they were anchored by a radio, a cassette deck and a CD player. Now all new cars allow drivers to sync their smart phones bearing the radio screen behind a layer of apps. Radios no longer have their signature advantage inside a car and this is been where people consume most of their radio time. For most traditional radio stations is becoming increasingly clear: if you can't beat the rise of digital media, join it. So stations have been making their own downloadable apps, offering streaming content and becoming more like digital marketing companies and radio stations. Some of the most successful radio companies have evolved. Townsquare Media is a country's third-largest a.m. FM radio station operator and has increased sales to 269 million in 2013 to 441 million last year due to attempts to spearhead its digital marketing business. It has been a challenge and not easy, but some radio stations will survive and adapt and others will not.