These consolidations have unquestionably made the radio industry more efficient and probably has made radio stations more effective competitors. Another positive sign is that the industry is accommodating new entrants. That surely is a sign of improving health in your industry. Wall Street seems to agree. Stock market returns suggest that the radio industry is enjoying robust health and good future prospects.
Most industry analysts predict continued consolidation for at least another year.
Such consolidation, the reports contend, will not only produce financial gain, but other possible benefits including bigger audiences, greater reach and more targeted programming. But there are subtle signs of trouble in paradise. On the second anniversary of the Act we see a great deal of hand-wringing over whether the Act has been a failure or a success. That is, the consolidation we have seen in the industry is somehow at cross purposes with the statute's desire for competition. This, of course, is misguided.