Radio may seem like yesterday’s medium, but it remains hugely
lucrative, with profit margins—before debt servicing—of about
30 percent, according to media research firm SNL Kagan. It’s a business
that boasts low fixed costs: towers, transmitters, and talent. “The
great thing about the radio business, it’s not capital-intensive,” says
Michael Bergner, president of media brokerage firm Bergner & Co.
“It’s old technology, but it’s easy and it works.” Overall projected
2012 industry revenues climbed to $14.6 billion from recession lows of
$13.3 billion in 2009, according to research firm BIA/Kelsey.
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