Rivalry In The Radio Broadcast Industry

981 Words 4 Pages
Porter’s Five Forces Model of Competition The five forces analysis addresses industry factors affecting competition within the areas of rivalry, barriers to entry, bargaining powers of suppliers and buyers, and the threat of substitutes. For SiriusXM to remain competitive within the radio broadcast industry, they must carefully monitor and address each of these forces. Rivalry Intensity – (Strong). Rivalry within the radio broadcast industry is a strong force, as many options are available to consumers. Whether it is online/streaming or terrestrial broadcasting, large competitors such as, iheart media, Cumulus Meida, and Pandora put significant pressure on SiriusXM do to their free program offerings and basic device support requirements. …show more content…
– In an industry where free terrestrial AM/FM radio is still the primary source of listener entertainment, the bargaining power of buyers is strong. With widespread availability of free radio, SirisuXM is truly at a disadvantage when it comes to attaining new listeners as a result of their specific device platform requirement. To attain new customers, SiriusXM must get listeners to buy a device capable of receiving the unique satellite signal and pay a monthly subscription fee. If the device and subscription weren’t enough of a hurdle, add in the fact that paying for a monthly radio service is the ultimate of discretionary spend and probably the first savings measure one would look …show more content…
The main driver of change has been caused by technology advancements in streaming internet capabilities and smart phones. To properly analyze the radio broadcast industry, the three types of broadcast providers must analyzed: Terrestrial AM/FM, Internet, and Satellite. Cumulus Media, as they’ve identified themselves, are “the largest pure-play radio company in the US.” With 460 stations, in 90 different markets, Cumulus is the second largest broadcast radio group in the United States, second only to iHeartMedia. Reaching 65 million listeners per week, Cumulus had $1.2 billion in revenue in 2013; 98% of which came from advertising dollars. As a true terrestrial broadcast group, Cumulus provides no subscription based media and solely relies on AM/FM and HD radio

Related Documents