Hate to quash this discussion so definatively -- but I kinda have no choice...
I'll add that both the original license R&O and the merger R&O discussed at length the potential impact of DARS on local advertising. It was determined that there will be no impact on local advertising -- and they took steps to prevent DARS from using their repeaters and other future technologies from generating local advertising. This is a protection for terrestrial radio that will not be removed, nor will the FCC allow it to be circumvented.Originally Posted by FCC Merger R&O
Like it or not, terrestrial radio is not going anywhere. The FCC will not allow it. Sure, DARS could impact the overall listenership, but it will not allow it to go away. There are too many licenses generating regular $$ in fees for the FCC. Local radio is too important to the landscape of media for each metro area.
And FWIW, the FCC reserves the power to put additional conditions on the two DARS licenses (via the original R&O), to protect local radio to prevent it from going under.
Regardless, despite a 10% dip in advertising in 2008, terrestrial radio still managed to generate nearly $20BB in advertising revenue.Originally Posted by FCC DARS Licensing R&O
What you are more likely to see -- moving into the future -- is more and more major broadcast companies spinning off stations around the country, back to "mom and pop" owners. The "mom and pop" owners sold off the stations to the big owners during the 90's... making big $$. The Wall St. companies bled them dry and now is forced with writing down the bloated values that they paid for them. I believe you're more likely to see them sell them back off -- as Wall St. will eventually move out of radio. This will allow the mom and pop owners to get back to what they did best. Sure they may not have the listernship they once had -- or the huge revenue -- but they will still be around.
I'm sorry if you think that terrestrial radio will just go away -- I disagree with you greatly. What you see as the current form of terrestrial radio may change, but it won't go away. The FCC will not allow it. Not as long as there is billions in local advertising being put into it on a combined nationwide basis.
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